RCC Budget Perspective:
Saskatchewan Finance Minister Ken Krawetz introduced Saskatchewan’s 2014 Provincial Budget on March 19. Saskatchewan’s 2014-15 budget projects a $71 million summary budget surplus. The government’s core operating budget is projected to have a surplus of $105 million for 2014-15.
Despite facing declining revenue projections for 2014, Minister Krawetz introduced a balanced budget without any tax increases or increases to the government’s net debt. The budget increased spending by 2.2 percent overall but most increases were in the Wall Government’s key priority areas: healthcare, education, infrastructure, and economic growth. The provincial debt is projected to remain flat at $3.8 billion in 2014-15.
While no reductions to personal income taxes were made in the 2014 budget, indexation of Saskatchewan’s PIT brackets took effect on January 1, 2012 saving tax payers in the province money on an annual basis.
Budget Highlights included:
- No tax increases and no changes to personal, property, education, or business taxes.
- No reduction to corporate taxes in 2014-15, but the government plans to still reduce the rate to 10 percent by 2015-16.
- Provincial debt will not be increased to fund operations or infrastructure investments.
- $405 million in new highway construction to improve key trucking routes, and $124 million dedicated to municipal infrastructure.
- No mention of an increase to the province’s minimum wage.
- Provincial tax on non-eligible dividends will be maintained at current levels.
RCC will continue pressing the government to take action on the key priorities outlined in RCC’s “Retail’s Election Agenda” including lowering payroll costs, implementing cost effective waste diversion, and harmonizing to reduce the regulatory burden on retailers.
If you have any questions or concerns, please don’t hesitate to contact: Lanny McInnes at: [email protected] or 204-253-1654.