2016-17BUDGETWILLKEEPSASKATCHEWANSTRONGTHROUGH.pdfVIP

EMBARGOED RELEASE Jun. 01, 2016 2:15 PM Finance 16-257 2016-17 BUDGET WILL KEEP SASKATCHEWAN STRONG THROUGH CHALLENGING YEAR Economy Expected to Rebound in 2017 Finance Minister Kevin Doherty today tabled Saskatchewan’s 2016-17 Budget which will keep Saskatchewan strong by controlling operational spending and investing in people and infrastructure. This year’s Budget contains no tax increases and no new taxes. “By keeping taxes low, controlling spending and investing in much needed infrastructure projects like highways, schools and hospitals, we will help Saskatchewans economy through a difficult year before the economic recovery which is expected next year,” Doherty said. Saskatchewans economy is expected to rebound in 2017, with GDP growth predicted to be 2.5 per cent, following an expected 0.6 per cent decline in 2016. The Budget forecasts total revenue of $14.02 billion and total expense of $14.46 billion for a projected deficit of about $434 million in 2016-17. This is largely due to a drop of nearly a billion dollars in non- renewable resource revenue. “Clearly, a $968 million drop in resource revenue is having an effect,” Doherty said. “Our government opted for a manageable deficit in this Budget, rather than cutting funding to priority areas such as health, education, or social services. “There are years when unforeseen events — drops in the price of oil or potash, or costly natural disasters— make it prudent to run a manageable deficit, rather than implement severe cuts to programs and services or increase the tax burden on Saskatchewan people. This is one of those years. However, we are committed to returning the Budget to balance by 2017-18.” The decrease in total revenue is offset somewhat by higher own-source revenue, including expected net revenue of $148 million from land sales this fi