Saskatchewan Pre-election Budget: no new taxes or substantial relief for Saskatchewanians

The 2024/25 Saskatchewan budget, titled Classrooms, Care and Communities projected a deficit of $273.2 million, the largest ever increases to school operating funding, health care funding and municipal revenue sharing, and continues to hold the line on no new taxes or tax increases. The significance of this budget cannot be overstated: it is the last budget for Minister of Finance Donna Harpauer, who announced she will not be running again in the upcoming fall election. She has been in the Finance portfolio since 2017, making her the longest serving female cabinet minister in Canada. This budget is surprisingly relatively thin on any voter-targeted affordability announcements, given that this 2024 Budget is the last budget before the election.

“Saskatchewan is growing at its fastest pace in more than a century and will reach 1.25 million people sometime this year,” Harpauer said. “This budget addresses the challenges of a growing province by reinvesting the benefits of growth in the areas that matter most to Saskatchewan people – education, health and our communities.”

2024 Budget: Fiscal Highlights

$273.2 million deficit: The Budget has a projected deficit of $273.2 M but is projecting to be back in a surplus position in 2025-26 due to increasing revenues driven by a growing population, labour force and economy.

Revenue:  $19.9 billion in revenue is forecast for the 2024-25 Budget – up $184.2 million from last year. The increase is primarily due to growth in all revenue categories, except non-renewable resources largely due to the moderation of potash prices.

Expenses:  Expenses are projected at $20.1 billion in 2024-25, an increase of $1.5 billion, or 7.9 per cent, over last year’s budget.

Provincial debt: Gross provincial debt is budgeted to hold at $30.8 billion for 2024.

Government Projections

WTI Oil price – $77.00 US/barrel
Light-Heavy Differential – 14.5% of WTI
Potash – $268 US/KCI tonne

2024 economic forecast: Saskatchewan’s economy is set to grow in 2024 and sustain a strong economic outlook over the medium-term from 2025 to 2028. The economic outlook anticipates ongoing weak global growth in the near-term due to the ongoing impacts of high inflation and interest rates; record levels of consumer, corporate and government debts; and ongoing supply chain challenges in some key sectors. There is a risk for Saskatchewan if any of the leading global economies experience a deep recession.

Addressing Key Issues:

Investments in Health Care and Education:

Healthcare

Operating funding would increase by $180 million from last year’s budget to a total of $2.2 billion – an increase of nine per cent.
$45 million of the $180 million is dedicated to classroom supports – an increase of 15 per cent since last year. The budget includes the largest increase in school operating funding ever in Saskatchewan’s history.
$7.6 billion to Ministry of Health – over 10 per cent increase to the budget.
Health training focus – 610 new training seats for high demand and hard-to-recruit professions.
$516.8 million for the largest-ever capital investment ever in health care.

Mental Health and Addictions:

$574 million investment for mental health and additions, including an increase of $34 million for targeted initiatives.
$33.9 million increase for targeted mental health and addictions initiatives, including additional treatment spaces.

Education

Record investment of $4.4 billion for education.
Record increase of $180 million for school operating funding.
$356.6 million in direct classroom supports, including funding to address classroom size and complexity.
$793 million in funding for post-secondary education.
$408.7 million for early learning and childcare.

School operating funding is increased by nearly nine per cent in this budget. Overall, education funding is up more than $247 million from the previous year – a lift of more than eight per cent for Saskatchewan teachers, students and classrooms – including a record $356.6 million in classroom supports.

Building a strong economy

No new taxes and no tax increases.
$40.6 million to help expand exports and grow Saskatchewan’s presence in international markets.
Investment incentives to build new opportunities to diversify Saskatchewan’s economy, increase exports and attract investment to the province.
Maintaining the small business tax rate of one per cent until June 30, 2025.
$570.6 million for agriculture, including investments in programs, services and research, as well as business risk management programs.
$15 million for capital and infrastructure improvements in Saskatchewan provincial parks.

Safer Communities

Record increase of $42.4 million in municipal revenue sharing.
$23.1 million for 160 municipal police positions, including 17 Combined Traffic Services positions.
More than $255 million in funding for First Nation and Métis people and organizations.
$16.7 million increase to continue implementation of the Provincial Approach to Homelessness, including a $7.2-million increase to support emergency shelter operations.
$31.7 million for interpersonal violence programs and services.
$1.5 billion for the Ministry of Social Services, including increased funding for Saskatchewan Income Support and Saskatchewan Assured Income for Disability clients.

Infrastructure

Record spending of $4.4 billion on capital projects in Saskatchewan.
$216 million in capital funding for 11 new or consolidated school projects and three major renovations, as well as the planning of nine new schools and two renovations.
Since 2008-09, approximately $2.6 billion has been invested to build 65 new schools and 32 major renovation projects.

Increased spending of $516.8 million in health infrastructure, including the Prince Albert Victoria Hospital, Weyburn General Hospital and long-term care facilities in Grenfell and La Ronge.
Since 2008, $2.9 billion has been invested in health care facilities across the province.
$617 million investment in operating, maintaining, building and improving Saskatchewan roads and highways. • Saskatchewan’s Crown utilities will invest $2.6 billion to enhance and expand infrastructure to ensure families and communities have access to safe, reliable and high-quality services.

With just over seven months until the next provincial election in Saskatchewan, the Sask Party government’s 2024-25 Budget maintains the status quo but does not include any significant inflationary relief measures for Saskatchewan residents and businesses to help address affordability challenges.

The next provincial election in Saskatchewan will be held on or before October 28, 2024.

To review the 2024-25 Budget in full you can follow this link.

To learn more about what this means for your sector, business, or association, please reach out to the Counsel Public Affairs Saskatchewan team:

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