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No relief for taxpayers in Budget 2003

Author: David Maclean 2003/04/04
While bombs dropped on the Iraqi regime in Baghdad, the Soviet-style Saskatchewan regime dropped a bomb of it's own: Budget 2003. Advocacy groups greeted the budget without about as much enthusiasm as they would an incoming daisy cutter. The only people who benefit are public sector unions who loudly applauded the government's commitment to 'enhanced' delivery of social programs (read: cradle-to-grave jobs and benefits for union workers).

Budget 2003 includes an across-the-board spending increase of 5 per cent - despite the fact that Saskatchewan's population is in slow but steady decline. Another "highlight" is the $400 million cash advance from the fiscal stabilization fund required to offset this year's record spending to balance the books.

While the government is borrowing money to make ends meet this year, the first sentence of the government budget news release states: "Finance Minister Jim Melenchuk today brought down Saskatchewan's 10th consecutive balanced budget-"

Perhaps a discussion of the definition of "balanced" is in order here. For the vast majority of Canadians, a balanced household budget means not spending more than you earn in a year. This kind of wisdom from Canadians is lost on the NDP government. Total government debt will actually increase by around $500 million next year.

Budget 2003 also reveals a startling trend when it comes to health care and education. This year, health spending will increase by another eight per cent. This represents a 56 per cent increase in health spending over the last decade. Ten years ago, health and education accounted for 35 per cent of total government spending. This year that rose to 54 per cent. At this rate, in 2013 these two functions of government will account for 73 per cent of the provincial budget - leaving little room for roads, infrastructure, agriculture or public emergencies.

The bottom line is that government spending is unsustainable. We can't continue to manage our affairs with complete disregard for future generations, who will be left to tackle an almost insurmountable public debt. It's worth noting the province's total debt is about to eclipse that of the Grant Devine regime of the 80s and 90s.

Underlying the governments enthusiasm for increasing it's own girth is a poisonous world view that the measurement of their performance is not how well they govern, but how much they spend. A government news release trumpets "-for the first time, health spending will exceed $2.5 billion this year, an 8 per cent increase."

Congratulations taxpayers - the Saskatchewan government has successfully figured out how to spend more of your money! If health and education is the biggest single cost driver for provincial governments, where is our government on health and education reform As long as governments measure their success in terms of taxpayer funded "compassion," meaningful reform will never come to the prairies.

By the way, a couple of minor tax reductions were hidden behind all the spending increases -- a reduction in small business and corporate capital tax. Unfortunately these changes don't take effect until 2004.

Taxpayers shouldn't hold their breath.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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