KEY NUMBERS
- Total Expenses: $20.135B
- Total Revenue: $19.862B
- Deficit: -$273.2M
- Debt-To-GDP Ratio: 14%
CONTEXT
The Government of Saskatchewan’s 2024 budget, the seventh under Finance Minister Donna Harpauer, is called “Classrooms, Communities and Care.” As the title indicates, the biggest areas of investment are health care (approximately 40% of budget expenses) and education (approximately 22% of budget expenses).
The new budget contains Saskatchewan’s largest-ever increase in school operating funding, up $180 million (9%) to $2.2 billion. It also includes Saskatchewan’s largest-ever increase in health
funding, up $726 million (10%) to $7.6 billion. The budget also includes record spending of $4.4 billion on capital projects across the province, including $617 million in investments for building and improving roads and highways and $2.6 billion to “enhance and expand” Crown utilities infrastructure.
The $20.1 billion budget for the year does not include new taxes or tax increases. This year’s budget includes a projected $273.2 million deficit before a forecasted return to surpluses next year. It also maintains the small business tax rate of one per cent until June 30, 2025.
Premier Scott Moe and the Saskatchewan Party will seek a renewed mandate from voters in a provincial election expected next October. This will be the second election with Premier Moe leading the party.
The budget expenditures come from Saskatchewan experiencing several strong economic indicators over this past term. Last year, Saskatchewan ranked second among Canadian provinces regarding private capital investment after a 25% increase. A further 14.4% is expected this year. Saskatchewan also boasted the highest growth in real Gross Domestic Product (GDP) from 2021 to 2022, with a 6% increase, reaching a total GDP value of $81.8 billion in 2022. Last year, Saskatchewan saw a fourth consecutive year of record-breaking agri-food exports, reaching $20.2 billion in 2023.
“This budget responds to the challenges of a growing province by reinvesting the benefits of a growing province. The dark days of declining population, of closing schools and hospitals, and underfunding our communities are now in the past. Our government vows to keep them in the past.”
HON. DONNA HARPAUER, DEPUTY PREMIER & MINISTER OF FINANCE
BUDGET 2024 SPEECH TO THE SASKATCHEWAN LEGISLATURE
FISCAL PICTURE
Taxation accounts for just under half of expected provincial revenues this year. Corporation Income Tax revenue is projected to be $1.2 billion, a decline of $615.9 million (33.7%) from last year’s budget. The forecast indicates a significant increase in individual income tax revenue, which is forecast at $3.3 billion this year. That’s a projected increase of $203.5 million, representing a growth rate of 6.6% over the previous budget. This increase is primarily attributed to increased employment and high compensation growth.
Despite the projected deficit of $273.2 million, Saskatchewan is expected to return to a surplus position in 2025-26 due to increasing revenues, largely driven by economic and population growth. This year, the province is expected to increase its population to 1.25 million.
Saskatchewan maintains the second lowest net debt-to-GDP ratio in Canada at 14%. The province maintains one of Canada’s best credit ratings: Aa1 (Moody’s), AA (Standard & Poor’s), and AA low (Morningstar DBRS).
HEALTH INVESTMENT
Saskatchewan’s largest-ever increase in health funding includes:
- $4.7 billion for the Saskatchewan Health Authority, marking an increase of $248.3 million.
- $574 million for mental health and addiction services, with a specific increase of $34 million for targeted programs.
- $248.9 million for the Saskatchewan Cancer Agency to expand services and provide access to oncology drugs, therapies, and treatments.
- A $3.5 million increase to breast cancer care and screening initiatives, including enhancements in technology, new diagnostic imaging equipment, and the establishment of the Breast Health Centre of Excellence in Regina.
- A $30 million increase to support the Saskatoon and Regina Capacity Pressures Action Plan aims to improve acute care, community-based care, and emergency department capacity.
An additional $225.7 million will be allocated to physician services and programs. This includes funding for various initiatives such as the Saskatchewan Medical Association agreement, fee-for-service, and contract physician services, physician recruitment and retention efforts, and support for the College of Medicine.
Operating costs throughout the provincial health system will increase by $193.1 million. This includes expenses related to recruiting, retaining, and training healthcare workers, investments in drugs and benefits, cancer treatment, information technology, and other key priority areas.
The budget also provides funding for the Health Human Resource Action Plan, which will be increased to strengthen healthcare teams and fulfill the commitment to add 250 new or improved permanent positions in rural and remote areas.
OTHER BUDGET INVESTMENTS OF NOTE
The provincial budget doubles the annual tax credit cap for the Saskatchewan Technology Startup Incentive (STSI) to $7 million and expands eligibility to include cleantech start-up investments.
In this budget, the Saskatchewan Petroleum Innovation Incentive (SPII)’s intake period is extended for five years, ending March 31, 2029, and increases the program’s funding cap by $70 million. This program increases the maximum royalty credits awarded from $30 million to a new cap of $100 million. The SPII provides transferable Crown royalty and freehold production tax credits for eligible innovation
commercialization projects, offering a rate of 25% of qualifying project expenses.
The 2024 Budget introduces the Saskatchewan Critical Mineral Innovation Incentive (SCMII), modelled after the successful SPII program. Like SPII, SCMII offers transferable Crown royalty and freehold production tax credits at 25% of eligible program costs. SCMII applies to pilot and commercial scaling projects that incorporate innovative technologies to enhance resource recovery rates, mitigate environmental impacts, increase value-added processing, or commercialize by-products or waste products. Eligible minerals under SCMII include high-potential and emerging critical minerals such as
aluminum, cobalt, copper, gallium, helium, lithium, magnesium, nickel, all rare earth elements, and zinc. The SCMII will operate within the $100-million funding cap of the SPII program.
The existing Oil and Gas Processing Investment Incentive has been extended to 2029.