The most interesting part of Budget Day Saskatchewan wasn’t the budget address or the budget response.
The last few minutes of Question Period just before the budget was presented turned into an interesting exchange on use of funds.
NDP MLA Miera Conway tackled the by-now-old issue of the SaskParty MLA Garry Grewal who owned the motel that charged the province double normal rates for social service clients.
She noted the motel received only a small amount of social services money until Grewal was elected MLA.
Since then Grewal’s motels have received $416,000 from Sask. social services.
The responding minister Gene Makowsky replied that the higher rates were instead of paying a damage deposit and followed NDP policy from before 2007.
Another question and he provided the same response adding they relied on the social services employees for choice of motels.
Conway pointed out the increased motel payments only started after Grewal was elected MLA and shared an office with Makowsky.
She asked why did Makowsky say only one motel was involved when two of Grewal’s were involved?
Makowsky gave the same reply, ending the exchange by saying the NDP doesn’t care about the vulnerable.
The budget itself was unsurprising.
The major funding allocations to education and health care had been announced previously. The $1 billion plus irrigation development had also been made public.
Those listening to the budget address never heard how much the planned deficit is.
Finance Minister Donna Harpauer mentioned the revenue and expenses but not the size of the deficit. It is $273 million.
Opposition Critic Trent Weatherspoon never mentioned the deficit figure in his response to the budget address either.
That might be explained by the NDP plan to use some of the $521 million fuel tax revenues to reduce gas prices at the pump.
Weatherspoon did hammer away at the debt, saying it is over $30 billion and has tripled under the Sask. Party in 14 years.
The Conference Board of Canada says the budget assumptions are prudent but warns the size of the deficit is vulnerable.
Spending on agriculture has declined “by over $1 billion without adding contingencies to its fiscal outlook. This leaves the province’s finances vulnerable to any adverse events such as drought.
“Overall, despite the plan for two consecutive years of deficit the province’s finances remain an envy of the rest of the country.’’
The budget takes a “broadly responsible approach’’ to planning for weaker resource markets and drought.
Saskatchewan’s debt to GDP ratio of 14 per cent is second lowest of 10 provinces and about one-third of the federal 46 per cent ratio.
Financing interest on the debt will cost taxpayers $874 million in this budget — over 4.3 per cent of revenues.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
