News

  • Provincial Budget Announcement

    Business as Usual

    2018 Provincial Budget Announcement 


    Saskatchewan’s 2018-19 Budget, titled “On Track,” was delivered today. The budget strikes a balance between eliminating the deficit while encouraging ongoing growth and investment in the Saskatchewan economy. Key highlights include:

    • No new taxes or tax increases (PST, income taxes, Education Tax, and Carbon Tax);
    • $2.7 billion in capital infrastructure investments ($1.2 Billion from Sask Builds and $1.5 billion from the Crowns);
    • Forecasts 1.3% real growth in GDP (a conservative estimate compared to private sector averages of about 2.0%);
    • Projected return to balance in 2019-2020 with a surplus of $6 million, followed by a 2021-2022 surplus of $212 million;
    • $14.243 billion in projected revenue (+2.2%);
    • $365.3 million deficit for 2018-2019; and
    • Repeal of used light vehicle PST exemption, partially offset by re-implementation of the trade-in allowance for used light vehicles.

     
    Other points of interest, some of which may help drive investment, include:

    • Government expenses are down;
    • Saskatchewan Growth Agenda initiatives:

    Value-added Agriculture incentive

    • 15% tax credit for capital investments in value-added processing
    • Upgrading or transforming primary agriculture produces


    Saskatchewan Technology Start-up Incentive

    • 45% tax credit for equity investments in eligible tech start-ups
    • Early stage companies developing new tech or applying existing tech in new ways to create proprietary new products/services/ processes that are repeatable and scalable

     
    Overall the budget is better than last year, particularly for construction and will help with an economy that is primed for a genuine recovery which has been slow to take root. This budget hinges on private sector investment and uses assumptions and projections that are all on the low end of reasonable – which means that any swings in market prices or demand are highly likely to favour the government and the people of Saskatchewan.
     
    Finally, for a budget based on private sector growth, the government has done an excellent job of staying out of the private sector’s way on the road to growth.

    For questions or concerns, contact:

    Mark Cooper
    President & CEO
    E: president@scaonline.ca
    P: (306) 525-0171

    John Lax
    Manager of Advocacy & Communications
    E: johnl@scaonline.ca
    P: (306) 525-0171

     

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