$54.7 million revenue-share for Saskatoon and debt reduction welcome news

SASKATOON, SK – March 22, 2023 – The 2023-2024 Provincial Budget tabled today by Deputy Premier and Finance Minister Donna Harpauer focused on addressing critical needs in health care delivery and education but stopped short of new measures targeted to SMEs in Saskatoon’s growing economy.

“Today's budget focused tightly on investments in education in healthcare, which are critical to a strong and growing economy,” observes Jason Aebig, CEO of the Greater Saskatoon Chamber of Commerce. “Job creators will have to wait until next year to see specific measures aimed at helping them access capital, cut costs and grow.”

“In the meantime, they will face high operating costs and taxes in an increasingly competitive environment where all businesses in our region are vying for people and capital to grow.”

The Chamber applauds the significant paydown of the province’s debt and the elimination of the budget deficit for 2023-2024. The interest savings on this payment will amount to $44 million in debt serving costs this year. Overall, the move sends the right message to those looking to invest in Saskatchewan and provide a stable economic climate for businesses already operating here.

Changes to the province’s record-breaking Municipal Revenue-Sharing Program also means good news for Saskatoon ratepayers. The City of Saskatoon’s share will amount to nearly $54.7 million in unrestricted funds to help to offset potential increases to the city’s mill rate and utility rates heading into the next 2-year budget cycle.

Looking ahead, the Chamber will continue to push for tax relief, incentives and targeted initiatives for the SME sector. The expansion of PST on event venues, gym/fitness memberships and construction over the last several years has undermined post-pandemic recovery and growth for many companies operating in these sectors.

“While this budget didn't raise or introduce any new taxes, it didn't provide any tax relief either,” says Aebig. “We believe that this was a missed opportunity and a priority we will continue to advance in the months ahead.”

He continued: “We won’t reach Saskatchewan’s economic and population targets if we do not support the small and medium size enterprises that supply our biggest industries, drive the growth and GDP of our communities, and hire 90% of our people.”

According to the Chamber, other highlights of today’s budget included:

• Revenue of $19.7 billion is forecast in the 2023-24 Budget, up $2.5 billion or 14.7% from last year's budget.

• $1.4 million increase to open a trade office in Germany - the fourth largest economy in the world and the economic, financial and manufacturing hub of the European Union.
• The University of Regina, University of Saskatchewan, and their federated and affiliate colleges will get $432 million in operating and capital monies, part of a greater $697.4 million for post-secondary institutions.
• Another $171.1 million will be laid out for Sask. Polytech, the Saskatchewan Indian Institute of Technologies and the DuMont Technical Institute.
• $4 million to expand the target and mineral exploration incentive to include exploration drilling for all hardrock minerals and to increase the funding limit to support the development of those commodities.
• Increase to the Saskatchewan Mineral Exploration Tax Credit from 10% to 30% in a bid to attract more mineral exploration.
• $249.1 million targeted for First Nations and Métis community and economic development, a 6.8% increase from the previous year.