Saskatchewan's debt must be addressed - but is anyone listening
Author:
David Maclean
2003/09/22
Saskatchewan's public debt currently stands at $12.6 billion - or around $24,400 per taxpayer. It's a pretty intimidating number. It's a number that one would think would alarm our political leaders and dominate policy discussions in the province. But alas, it doesn't.
Our provincial debt grows by leaps and bounds while the number of taxpayers supporting that debt shrinks. Last year alone, the provincial debt grew by more than $1 billion. Since 1997, the last of three years where government spending was relatively stable, program spending (not including the crowns) increased by 43 per cent.
Saskatchewan's population actually decreased over that time. Per person spending increased from $5,680 in 1997 to $8,130 in 2003. The province has been increasing spending twice as fast as revenue was coming in. Even after you adjust for inflation, spending has increased by 25 per cent.
For the last couple years, the NDP government said spending increases are the result of drought and forest fires. While droughts and fires have increased demand for tax dollars, the current spending spree began before these challenges arose. The spending binge began way back in 1997 - long before the droughts, the grasshoppers and BSE - and has continued unabated since then.
Our Provincial Auditor - the man responsible for holding the province's feet to the fire - consistently delivers stern warnings about spending levels, about the lack of accountability in Saskatchewan and the lack of transparency in our crown corporations. All the while our politicians cover their eyes and ears and pretend everything is fine and dandy.
With an election looming the CTF is looking to the "big three" parties for an action plan on debt. To date, nobody has articulated a plan to kill the deficit, let alone address the accumulated debt.
The NDP view of the world is that government revenue, like the float in a toilet, will rise as the economy and population grows - eventually 'growing' us out of debt. This is a dangerous gambit, considering that the NDP have offered few policies aimed at growing the population or the economy. Success for this plan can only be realized if they hold the line on spending, a form of discipline this government can't stomach.
The Saskatchewan Party, while talking good game, has offered little more than the NDP when it comes to debt reduction. Saskatchewan Party MLAs actually go out of their way at news conferences to quell speculation that they might actually - gulp - reduce spending. On the other hand, they're committed to reducing corporate and small business taxes - moves that could stimulate our economy. The reality is that these promises aren't feasible without fundamental government reform. Change makes unions and special interest groups angry, and like Bruce Banner, we won't like them when they're angry.
As for the Saskatchewan Liberals, it's anyone's guess what they would do if elected. They are on the record as being critical of the NDP's current approach to government intervention in the economy, but in recent months they're all over the map on fiscal policy.
Today's debt is tomorrow's tax increase. Standing around and doing nothing while the debt grows is a disservice to our children and grandchildren - especially when there are fewer of them than there are baby boomers. An election platform without a solid debt elimination plan is incomplete.
When the candidates come knocking on your door this fall ask them what their debt elimination plan is. Vote for the candidate who can look you straight in the eye and give you an answer.