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Saskatchewan finance minister cautions provincial budget will be tight
REGINA - It's a snug fit that could be seen as a metaphor for a provincial budget that is expected to be tight,[link widoczny dla zalogowanych].
Saskatchewan Finance Minister Ken Krawetz stuck with tradition by showing off a pair of shiny new black shoes for budget day - but he needed a shoe horn to get into them,[link widoczny dla zalogowanych].
"When you develop a budget over a long period of time,[link widoczny dla zalogowanych], there are many decisions that have to be made and priorities of government need to be weighed," Krawetz said Tuesday as he put on the new shoes.
"It's not an easy task. It is difficult to come up with a balanced budget,[link widoczny dla zalogowanych]."
But to keep the books in the black,[link widoczny dla zalogowanych], Krawetz warned "tough choices" have been made.
Krawetz will table a budget Wednesday that has to deal with falling revenues from non-renewable resources, such as oil and gas or potash. Oil revenue is $278.2 million lower than expected in the current budget, while potash revenue is down $307.8 million.
It's a resource revenue squeeze that has already been felt in neighbouring Alberta,[link widoczny dla zalogowanych]. The Alberta government delivered a budget March 7 that anticipates a $2 billion deficit,[link widoczny dla zalogowanych].
The Saskatchewan government started running radio ads earlier this month warning people about the budget. In the commercials, Premier Brad Wall talks about "growing deficits and crushing debt" in other provinces and countries. But because of these ads and especially because of what happened in Alberta,[link widoczny dla zalogowanych], some people may think, 'Oh,[link widoczny dla zalogowanych], it could have been much worse or it could have been worse,'" Beland added.
Michael Atkinson, executive director and professor with the Johnson-Shoyama Graduate School of Public Policy, says the province doesn't want to be accused of low-balling non-renewable resource revenue,[link widoczny dla zalogowanych], but he believes it will be more cautious with its projections.
"The difficulty of predicting revenues in a province like this one, which is so reliant on natural resources,[link widoczny dla zalogowanych], is particularly acute," said Atkinson.
"Budgeting in this environment is not easy and governments,[link widoczny dla zalogowanych], especially governments committed to balanced budgets and reduction of deficits, will be very conservative with respect to their revenue projections."
Atkinson says to some degree,[link widoczny dla zalogowanych], the province will get a bounce from increased revenue from income tax.
The Opposition NDP said it wants to see more spaces for long-term care in the budget and more for kindergarten to Grade 12 education.
"There's a tremendous strain on students and our classrooms," said finance critic Trent Wotherspoon.
"We have students that are learning in hallways rights now,[link widoczny dla zalogowanych]. We have class sizes that are growing in ways that don't support students learning,[link widoczny dla zalogowanych]."
The NDP had its own take on the tradition of new budget day footwear and showed off a pair of tap shoes,[link widoczny dla zalogowanych]. Wotherspoon says Krawetz has been dancing around issues - talking about the good economy while running ads warning about the budget,[link widoczny dla zalogowanych].
Krawetz acknowledges not everyone will be happy.
"There are some people who will look at a budget no matter what it is and will say,[link widoczny dla zalogowanych], 'This is horrible' and there will be others that will say,[link widoczny dla zalogowanych], 'This is beautiful.' So, overall I don't expect that to be any different,[link widoczny dla zalogowanych]," said Krawetz.
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