Legislative Report (22 October 2008)

2008 Throne Speech

As our government considered how to put the unbudgeted $3.1 billion dollar surplus to work for the people of Saskatchewan, we knew our plan had to do two things. First, it had to sustain the economic momentum and lay a strong foundation for future growth. Secondly, the plan had to ensure all Saskatchewan people benefitted from our newfound prosperity. By doing those things, Saskatchewan would grow stronger, which would improve the quality of life for Saskatchewan people. The Premier asked all government MLAs to go out into our constituencies and ask the people what they wanted done with this surplus. We also set up a web site for feedback and other means by which individuals could voice their opinions. The collective answer was loud and clear - the people of this province want debt reduction, tax relief and more money toward our hospitals, schools, highways, universities and other vital infrastructure. The next step was to determine how to share the benefits of prosperity.

Saskatchewan families are paying more for a lot of things these days, whether that is to fill up the car or heat their home. The question then is: how does our government help? The answer: broadly-based tax relief.

We are raising the Basic Personal Exemption – the amount you can earn tax-free - for both the Basic and Spousal Exemption by $4,000. The Child Tax Credit is also increasing by $2,000 a year. Combined, these measures will save a family of four $1,320 a year, making the total tax exemptions for a family of four in Saskatchewan now the highest in all of Canada.

The change to the Basic Personal Exemption will also mean 80,000 Saskatchewan people will no longer have to pay income taxes.

There are thousands of people like students and seniors who already pay no income tax. Our government believes that they too should share in the benefits of our newfound prosperity, which is why we are introducing the new Low Income Tax Credit. It will replace and significantly increase the current Saskatchewan Sales Tax Credit. The maximum credit will be $216 per individual, and $84 per child for up to two children. That’s $600 for a family of four – an increase of $222 compared to the existing Sales Tax Credit.

Usually when a government announces this kind of tax relief, it does not come into effect until the next year. Saskatchewan families, though, will receive relief now. The income tax reductions announced by our government come into effect this year, and are retroactive to January 1, 2008. The Low Income Tax Credit will be retroactive to July 1, 2008.

These tax cuts will improve the quality of life for all Saskatchewan people. People will keep more of what they earn and can use that money to offset the rising cost of living. For 80,000 people it means no more income tax. Low income families will get a little extra help that could make all the difference.

Last spring, our first budget included the $1 billion Ready for Growth fund. That money allowed us to do a lot of work on highways, schools and hospitals neglected for far too long. There is still much to be done, though, which is why our government will commit a further $500 million in the 2009 budget to build and re-build infrastructure. Investing in infrastructure is a prudent financial decision that ensures continued growth and strengthens the Saskatchewan economy.

We are committing a further $1 billion to reduce the provincial debt. Our government has already made historic progress on paying down the debt, reducing it by nearly 40 per cent - $2.6 billion – in less than a year. Debt reduction will ensure our children a secure future. We will save millions of dollars in interest costs. That money can then be used in Saskatchewan for priorities like health, education and highways. We will continue to work toward debt reduction, with the goal being debt elimination. A debt-free Saskatchewan is a stronger Saskatchewan.

House insurance is an accepted part of being a home owner. You don’t think twice about it. In these times of economic uncertainty, it makes sense the same should hold true for the Saskatchewan house. Even with historic tax cuts and our continued commitment to infrastructure investment, our government will maintain a nearly $2 billion balance in the province’s Growth and Financial Security Fund. This prudent and cautious decision lays a solid foundation for the future of our province, and is in keeping with both the principles of our government and the beliefs of Saskatchewan people. This $2 billion will ensure Saskatchewan is prepared to weather any possible impacts on the province’s revenues.

Our government's plan for Saskatchewan will ensure future growth for our province while addressing the priorities of Saskatchewan people. It is sustainable, it is prudent, and will lay a solid foundation for our children and grandchildren.

A stronger Saskatchewan means a better life…for everyone.

Past Legislative Reports