Saskatchewan Budget 2022

Much like other provincial governments, the Saskatchewan Government presented a better-than-expected fiscal plan for 2022-23. With higher non-renewable resource revenues, increased tax revenue from higher incomes and PST receipts, and real GDP growth projected at 3.7% for 2022, both debt and deficit figures have dramatically improved. The top-line numbers, as well as departmental priorities, are presented below:

Public Finances:

• Deficit: $463 million. An improvement of $2.1 billion from projections made last year.

• Debt: $30 billion. An increase of $2.3 billion from last year.

• Debt/GDP ratio: 19%. This is the second-best rate in Canada, behind BC (16.5%) and slightly better than Alberta (19.3%).

• Non-renewable resource revenues: $2.9 billion. This is a significant $1.6 billion higher than the previous budget.

• Tax revenue: $8.1 billion. Up $854 million from last year.

Tax Changes:

• Tobacco. Increased tax rates on loose tobacco, cigarettes and heat sticks. Expected revenue of $12.1 million.

• PST. 6% rate is being applied to new products: sporting events, concerts, museums, fairs, theatre, gym memberships, green fees to harmonize with GST application. Effective from October 1, 2022. Expected revenue of $21 million in the full first year. Audio books (presently subject to PST) are exempted from PST from April 1, 2022.

• Education property tax mill rates. Slight increases; expected revenues of $20 million.

• Small business: 0%. Tax suspended on October 1, 2020; reverts to 2% on July 1, 2022.

• Video Lottery Terminals: Commission split for VLT operator/government increases (now at 15%/85%) increases for operators (18%/82%).

 Health:

• Ministry Budget: +5.2% over last year.

• Addressing the surgical backlog: new $21.6 million.

• More CT and MRI scans: new $4.9 million.

• Recruitment initiative (health care workers from the Philippines): new $1.5 million.

• Physician retention initiative: new $3.5 million.

• EMS system: increase of $10.8 million.

 Education:

• Ministry Budget: +8.3% over last year.

• New education assistant fund: $7 million.

• Early learning and childcare: $309.6 million, including funding through federal-SK agreement. Provincial target of +28,000 licensed spaces in five years.

 Agriculture:

• Value-added Agriculture Incentive: Qualifying project threshold is raised to a value of $400 million to qualify for the 15% tax credit.

 Social Services:

• Ministry Budget: +3.4% over last year

• Saskatchewan income support program: increase of $11.4 million.

• New Education and Training incentive: $20 million.

Arts & Culture:

• Creative SK Production Grant Program for Film and TV: increase of $8 million.

Capital Plan:

• $12 billion over four years, of which:

  • $1.6 billion for transport infrastructure;

  • $980 million for municipal infrastructure;

  • $962 million for healthcare infrastructure;

  • $707 million for education/advanced education infrastructure