The 2006 Saskatchewan budget has some good things, some bad things, and some plain ugly things. While the budget was met with cheers from many, sober reflection reveals disconcerting policies and trends.

First up: the good. The government has finally done something about Saskatchewan's ludicrous business tax structure. For years, the Canadian Taxpayers Federation (CTF) has told the government that in order to create jobs and grow the economy, they must reduce business taxes. The reality was (and still is, for now) that Saskatchewan had the least competitive tax structure in North America.

The government responded, first by establishing the Business Tax Review Committee and then implementing its recommendations almost to the letter.

Why should the average taxpayer be concerned about business taxes Recall the old cliché which says "there is only one taxpayer." In order to stay afloat, businesses eke out a profit one way or the other. That means they pass on their taxes to consumers in the form of higher prices, to employees in lower wages, or to shareholders in the form of reduced returns.

And that's assuming it's even possible to make a profit. If taxes are too high, businesses won't survive here and will go where they can make money. That's a story that has been unfolding in Saskatchewan for decades. In terms of average weekly earnings (excluding agriculture), Saskatchewan ranks a dismal eighth. For decades, the economy has been among the slowest growing in Canada and our labour force continues to shrink.

Business tax relief won't erase decades of horrific economic policies, but will finally point us in the right direction. The government deserves credit for that.

The bad: How much spending is enough The government plans to spend more this year than ever before in history. At $7.7 billion, the current budget is 17 per cent higher than was forecast in the 2005 budget. But don't let that fool you. Since 2000 the government has gone over budget every year by an average of 10 per cent. That means this year's expenses will likely come in at $8.5 billion.

Government spending will rise by as much as 20 per cent in just two short years while the population is in slow decline. Meanwhile, those who pay the bills can expect a 2.9 per cent raise this year. Something has to give.

The big daddy of expenses - health care - is scheduled to increase by a whopping 10 per cent or nearly $300 million. The health budget now eats up all the revenue derived from income taxes, the PST, fuel tax and tobacco tax combined.

If health care costs are the biggest single budget item, why aren't politicians waking up every morning thinking of ways to fix it We're paying more for health than ever before, yet it's still not meeting peoples' basic needs. Not a word in this budget is spared for health care reform.

Finally, the government continues to hand out millions to big business. Maple Leaf foods alone is scheduled to receive $15 million as part of a much larger "meat strategy." Transient film companies are scheduled to receive $9 million this year. Don't forget about the Meadow Lake Pulp Mill, which consumed $67 million last year. It's anyone's guess how much the government will spend this year.

Budget 2006 finally brings in corporate tax changes that should help expand the economy, create jobs and slow out-migration. However, spending increases pose a significant threat to the long term viability of the province. Talk to your MLA and remind them that it is his or her job to watch out for future generations and ensure they aren't paying for the current government's largess.
-30-