REGINA: The Saskatchewan government has delivered a budget that boosts spending, increases the size of government, and does nothing to address our onerous tax burden. Despite the fact that government will borrow from the Stabilization Fund to balance the books, official government statements proclaim a "balanced" budget.

"This government is ignoring the crisis that Saskatchewan currently faces," said Canadian Taxpayers Federation (CTF) Provincial Director David MacLean. "Thousand upon thousands of Saskatchewan residents have voiced their frustration with the business climate in Saskatchewan by simply moving to other provinces. It's time this government pull their head out of the sand, recognizes the problem, and addresses it."

While the budget announces reductions to small business taxes and the corporate capital tax, those reductions don't take effect until 2004.

"We're not holding our breath," said MacLean. "This government's tax reduction plan is like a Brick Card - no tax cuts 'til 2004, and a maxed-out $400 million credit limit. Unfortunately, this government has a history of not paying its bills."

Province Commits to study school taxes
Budget 2003 commits the province to review school taxes, but does not stipulate school tax reductions in the review's mandate. Saskatchewan schools receive nearly 60 per cent of their funding from taxes on property - the highest proportion in Canada. In a recent survey of CTF supporters, nearly half indicated school and property taxes are their number one priority.

"This budget doesn't do anything to address the property tax crisis," said MacLean. "A review process without a clear mandate to find alternatives and workable solutions isn't going to bring relief to the people of Saskatchewan. Taxes on property are inherently inefficient, unfair and bear little resemblance to the services actually provided."

Pie in the sky economic forecast
The government's budget forecasts 6.8 per cent GDP growth - which means Saskatchewan would have one of the fastest growing economies in the world.

"In light of the fact that Ontario has announced a three per cent growth forecast, and the Conference Board of Canada recently downgraded Canada's real GDP growth forecast to 2.7 percent, the government's projections are a joke - and nobody is laughing," said MacLean.