The provincial budget tabled by the Wall government is probably the best one you’ll find in Canada this year.
What makes it so special? Nothing, in particular. Its high ranking is partly because the competition in Canada is so bad right now.
Consider that most provinces across the country are swimming in debt. Their politicians are simply spending more than they’re raising in revenues, so they’re going to borrow money to make up the difference. The bills for many services provided this year will then be given to the next generation to pay; a nasty bit of ‘inter-generational fiscal child abuse.’
Just don’t expect any government ad campaigns warning about that form of child abuse.
Alberta is running a multi-billion dollar deficit this year and Ontario will likely table one around the
$12 billion mark. Recently, the federal government announced an
$18.7 billion deficit this year.
Thankfully, the Wall government isn’t going to follow in their footsteps – they tabled a balanced budget.
A balanced budget was the number one recommendation presented by the Canadian Taxpayers Federation (a non-profit taxpayers’ watchdog organization) to the Saskatchewan’s Finance Minister last December, we’re pleased as punch. We have always advocated that governments live within their means financially, just like families have to do.
What else deserves praise in the budget?
The Wall government deserves credit for continuing to downsize the provincial bureaucracy through retirements and vacancy management. In other words, they’re cutting a whole bunch of wasteful positions that taxpayers were paying for, but weren’t really necessary.
Once this budget year is complete, the government has indicated it will have cut an impressive
1,909 full-time positions, savings taxpayers nearly $200 million. As Saskatchewan has a high number of government employees as a percentage of its workforce – 26.6 per cent versus the national average of 21.0 per cent – the government is definitely heading in the right direction.
So what is preventing this budget from migrating from the “good” to “great” category?
First, the Wall team should be more aggressive with organizations it funds; requiring them to be just as diligent with finding and cutting fat. The Wall team is requiring health care regions to find
$54 million in efficiencies, but school boards, universities and municipalities also need to work hard at finding efficiencies.
As thousands of employees are set for retirement over the coming years, the aforementioned government bodies could reduce the fat in a relatively a pain-free manner as well; don’t rehire when unnecessary positions open up. Further, school boards like the Prairie Valley School Division need to get the message that little things – like paying
$2,400 for a pair of office chairs – just aren’t acceptable either. Every dollar adds up.
Second, the province should try and incent arm’s length bodies to pursue pension reform. In short, many government bodies need to do what the NDP government did during the 1970s and start putting new employees in less expensive and less risky pension plans. Starting the transition now will pay off big time down the road.
All in all, it’s a good budget. If the government keeps chipping away on the spending side, next year’s will be even better.
Colin Craig is the Prairie Director for the Canadian Taxpayers Federation
