REGINA: The Canadian Taxpayers Federation (CTF) is calling on the Saskatchewan government to implement widespread spending reductions, to stave off the province's second consecutive massive deficit.

"The province's mid-year fiscal update shows the province's finances are in disastrous condition," said Saskatchewan Director David MacLean. "Every major department is now forecast to come in over budget this year. Department of Environment is $46 million over budget, Agriculture is over by $25.5 million and Learning is over by $9.6 million. Industry and Resources is projected be $3.3 million over budget, largely due to the Wide Open Future Advertising campaign. This government is out of control."

The biggest single hit is a $597.6 million reduction in federal transfers resulting from adjustment of prior year figures. The end result is the province will borrow $522 million this fiscal year.

"Even though this province knew in October the Ottawa handout would be almost $600 million less than forecast, they continued to spend like drunken sailors on ethanol plants and glitzy advertising campaigns," said MacLean. "These new spending initiatives are grievously irresponsible, and must be reversed immediately."

CTF Calls for immediate budget adjustments
The CTF is demanding the government take immediate steps to mitigate the loss to taxpayers in this fiscal year. Measures include:

An immediate freeze on government spending, including proposed ethanol plants and the "Wide Open Future" advertising campaign.

A government-wide hiring freeze, effective immediately.

An immediate, across-the-board spending reduction of two per cent.
"This government needs to wake up and smell the coffee," said MacLean. "They can't sit idly by and watch the province's finances go down the tubes. Aggressive corrective actions must be taken immediately. It's the spending, stupid."