The Government of Saskatchewan delivered their 2019 budget on March 20th. CFIB was on hand to find out what it means for your business. We were pleased the 2019 provincial budget is balanced by keeping spending to sustainable levels and not increasing taxes.
In advance of the 2019 Saskatchewan Budget, we met with Premier Scott Moe as well as Finance Minister Donna Harpauer to present your 2019 pre-budget priorities as well as discussed a number of your key concerns
- The government will limit its spending to 2.6% in 2019 and 2.1% in 2020; and
- Continued to implement its plan to reduce the size of government through finding efficiencies and workforce attrition which will result in $35 million in savings in 2019-20.
2019-20 Budget is balanced:
- The 2019-20 Budget is balanced, with a projected surplus of $34.4M. Higher surpluses of $49M, $72M and $84M are projected for the following three fiscal years.
No tax increases:
- The Budget contains no new taxes or tax increases. All provincial tax rates, including provincial sales tax, income tax and property tax remain the same.
- However, we are disappointed the Government of Saskatchewan did not follow the New Brunswick and Ontario governments who have announced they will not be following new federal passive investment rules.
Municipal Revenue Sharing increases by $10.5M in 2019:
- The 2019 budget provides more than $251M in municipal revenue sharing to Saskatchewan municipalities. The Budget maintains the consistent source of provincial revenue for Saskatchewan municipalities who will now see the formula based on three quarters of one point of the provincial sales tax (PST) revenue collected from the fiscal year two years prior to the current year. CFIB will continue to push municipalities to use this funding increase prudently to avoid annual property tax hikes!
- Continue to push the Sask government to follow Ontario and New Brunswick in pushing back against the unfair federal tax changes on passive investment rules.
- Tax relief needed in future budgets: As the province’s finances improve in the coming years, we will continue to aggressively push for more tax relief including; reinstating indexation of the Personal Income Tax (PIT) system, and removing the PST from items such as construction labour, restaurant meals and other insurance products such as property and vehicle insurance.