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Saskatchewan Budget 2018 - CCUA Synopsis

April 12, 2018

Deficit reduced to $365 million, overall expenditures decrease by $200 million.

On Tuesday, April 10, 2018, the Honourable Donna Harpauer, Minister of Finance delivered a budget for 2018-2019. The province remains committed to its plan to return to balance by 2019-2020.

Of Interest to Credit Unions

  • The Saskatchewan Housing Corporation (SHC) will launch the Seniors’ Education Property Tax Deferral Program in April 2018. About 1,600 low- to moderate-income senior homeowners will be able to defer the education portion of their property taxes through a repayable loan. CCUA will be contacting SHC for more information on how the program will be administered.
  • The Saskatchewan Value Added Agriculture Incentive (SVAI) creates a 15 per cent non-refundable and non-transferable tax credit for new or existing value-added agriculture facilities that make a minimum capital investment of $10 million to expand productive capacity.
  • A two-year pilot program will offer a 45 per cent non-refundable tax credit for individual and corporate equity investments in eligible technology start-up businesses (ESBs) capped at a maximum annual benefit of $140,000 per investor.
  • The Saskatchewan Rental Housing Supplement will suspend the intake of new applications while a new rental support program is being co-developed with the federal government as part of the new National Housing Strategy. CCUA will monitor the implementation of this commitment.
  • The new single provincial health authority is projected to save the province approximately $19 million with lower governance and administrative costs now that the two health regions have been amalgamated.
  • The government is restoring $30 million in funding to K-12 education, which the Premier promised during his recent leadership campaign. This additional funding represents a 1.6% increase.
Taxation Measures
  • Provincial sales tax remains at 6%.
  • Personal income tax rates are unchanged, pausing the rate reduction plan announced in 2017.
  • PST exemptions for light used vehicles and for Energy Star appliances are being eliminated. (PST will not be applied to the private sale of used vehicles with a purchase price of up to $5,000.)
  • SaskPower and SaskEnergy will pay grants-in-lieu of property taxes on owned real-estate assets in Saskatchewan (i.e. office buildings), but exclude generation, transmission, and distribution facilities, as well as pipelines and land.
  • SaskEnergy will now collect a municipal surcharge on behalf of all urban municipalities at a rate of five per cent. This charge will appear on SaskEnergy customer bills. Municipalities can choose to opt-out of this program.
Returning to balance
  • The government is hoping to realize the bulk of its savings with $352 million in reduced pension liability and reduced Teachers’ Superannuation plan expenses.
  • The government is looking for $70 million over two years in public sector compensation savings.
Revenues
  • Total revenues are forecast to be $14.24 billion, up 0.6%.
  • Taxation—$7.21 billion
  • Non-Renewable Resources—$1.48 billion
  • Net Income from Government Business Enterprises—$1.08 billion
  • Other Own-Source Revenue—$2.01 billion
  • Transfers from the Federal Government—$2.46 billion
Expenses
  • Total expenses are forecast to be $14.61 billion, down 1.4%.
  • Agriculture—$770.9 million
  • Community Development—$642.6 million
  • Debt Charges—$654.6 million
  • Economic Development—$230.2 million
  • Education—$3.26 billion
  • Environment and Natural Resources—$251.7 million
  • Health—$5.77 billion
  • Protection of Persons and Property—$689.9 million
  • Social Services and Assistance—$1.38 billion
  • Transportation—$519.3 million
  • Other—$439.7 million
If you have any questions, please don't hesitate to contact Leslie Trobak at ltrobak@ccua.com or at 306 271 0407.

Our thoughts are with all those impacted by the Humboldt tragedy and we extend sincere condolences to those who have lost loved ones.
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