Saskatchewan spends more per person than any other province in Western Canada, writes Gage Haubrich of the Canadian Taxpayers Federation.
The Saskatchewan government is spending too much money and it’s costing taxpayers a lot.
That didn’t seem to sit too well with Saskatchewan Finance Minister Donna Harpauer.
“I would have loved to have ended with a budget that was balanced and was able to do a tax reduction,” Harpauer said. “However, it is the budget I am comfortable with.”
She said other members of the legislature were pushing for “substantive increases” to spending when she defended the deficit.
But compared to other provinces, Saskatchewan is spending all the money in its wallet and then smashing the piggy bank to look for any extra cash it can use.
This year, the government of Saskatchewan plans to spend about $16,430 per person. Premier Wab Kinew’s NDP government in Manitoba plans to spend slightly less at $16,367 per person. Premier David Eby in British Columbia plans to spend even less at about $15,942 per person.
Saskatchewan’s most fiscally responsible neighbour is Alberta, which intends to spend $15,241 per person this year.
That’s right; Saskatchewan is spending more money per person than any other province in Western Canada.
And that’s the problem, because it’s not like this is the Budget Olympics. B.C. and Manitoba are blowing their own budgets this year with huge deficits, and even Alberta is still borrowing more this year.
Saskatchewan has placed last in a competition of fiscal restraint even though hardly anyone else is even trying.
The government says it needs to spend this much because the province is growing, but even that doesn’t pass the smell test.
And it’s not clear that all this extra spending is helping. Alberta beats or ties Saskatchewan when it comes to health-care wait times and regularly out-performs Saskatchewan when ranked on educational performance.
More money does not mean better results.
And because the government is spending so much, that means there is little room left over for the tax relief people want and need.
A Saskatchewan family making $75,000 in Regina is paying about $1,342 more in provincial taxes compared to a similar family in Calgary, according to Saskatchewan budget documents.
The government needs to reduce its wasteful spending to provide tax relief. If the government were to reduce its per-person spending to Alberta’s level, instead of facing a $273 million deficit, the government would be looking at a $1.2 billion surplus. That’s enough to fully cut the provincial fuel tax with about $662 million left over for further tax relief or debt repayment.
A poll conducted by Insightrix found 74 per cent of Saskatchewan respondents support the government cutting the 15 cents per litre provincial fuel tax. People like saving money.
A two-car family with a minivan and a light duty pickup truck would be saving about $11 and $15 every time they fill each vehicle. If that family fills those vehicles once every two weeks, they would be saving about $676 per year with a fuel tax cut.
Reducing spending to Alberta’s level would offer more than enough to cut the fuel tax and get Saskatchewan people some tax relief.
The problem is clear: the government is spending too much. Saskatchewan needs to get its spending in line with other Western provinces and use the surplus to provide tax relief.
Gage Haubrich is the Prairie Director for the Canadian Taxpayers Federation.
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