Scott Moe promises to balance budget by 2019-2020
October 4, 2017, 9:27 am
Saskatchewan Party Leadership Candidate Scott Moe announced his commitment to balancing the provincial budget by the 2019-20 fiscal year on Wednesday.
“My plan to stand with Saskatchewan starts with balanced budgets,” said Moe. “As a member of cabinet and treasury board, I was a strong proponent of our government’s three-year plan to balance the budget. My team is committed to this target to ensure we do not unload the spending of government on future generations.”
In upholding the commitment to balance by 2019-20, Moe added that a priority would be placed on not shocking the economy or valuable public services in Health, Social Services, and Education.
During the announcement, Moe also committed to a balanced reinstatement of the PST exemption on crop, life, and health insurance.
“A commitment to balanced budgets must be accompanied by a commitment to fully balanced campaign policies,” said Moe. “My campaign is providing a framework on how we will recover the revenues lost through reinstating the PST exemption on crop, life, and health insurance.”
Under this framework, the $120.5 million in lost revenue from reinstating the PST exemption will be fully recovered through achieving savings in the following areas:
$70 million (conservative estimate) in savings by introducing a 5% workforce reduction in Executive Government and the Crown Corporations through retirement and attrition.
$50.5 million (conservative estimate) in savings through delaying the 0.5% corporate income tax (CIT) reduction for all sectors except the manufacturing and processing sector. The 0.5% CIT reduction for all other sectors would take effect once a balanced budget is achieved.
By maintaining the CIT reduction for the manufacturing and processing sector, Saskatchewan would achieve the lowest tax rate for the manufacturing and processing sector in Canada.