The Honourable Donna Harpauer Deputy Premier and Minister of Finance

SASKATCHEWAN PROVINCIAL BUDGET 21-2 2 PROTECT. BUILD. GROW.

MINISTER’S MESSAGE

I am pleased to table the 2021-22 Budget and supporting documents for public discussion and review.

The 2021-22 Budget will protect Saskatchewan people through the pandemic.

It provides direct funding to fight COVID-19, and record levels of investments in health care, education, social services and assistance and protection of persons and property.

This Budget will build Saskatchewan. Capital investment of $3.1 billion will help our economy and create jobs. The 2021-22 Budget invests in new long-term care facilities, hospitals, schools, highways and vital municipal infrastructure. Crown corporations will see important capital projects move forward.

This Budget will grow Saskatchewan through key investments and incentives, and it will keep life affordable for families.

The 2021-22 Budget has a forecast deficit of $2.6 billion. We project the province’s fiscal path will steadily improve over the next three years with smaller deficits of $1.7 billion in 2022-23; $1.2 billion in 2023-24; and $770 million in 2024-25. A return to balance is expected in 2026-27.

Revenue is forecast at $14.5 billion in this Budget, with most revenue categories forecast to increase compared to the latest 2020-21 forecast.

Expense of $17.1 billion is projected in this Budget, an increase of about $1.0 billion compared to last year.

This Budget protects lives and livelihoods by providing significant support, as more people become vaccinated and life begins to return to normal.

This Budget builds. This Budget ensures Saskatchewan is ready for growth, as our economy recovers and more investment comes into our province.

The 2021-22 Budget charts a clear course for our province through the remainder of the pandemic and into the strong recovery that will follow.

Honourable Donna Harpauer Deputy Premier and Minister of Finance

TABLE OF CONTENTS

MINISTER’S MESSAGE

GOVERNMENT DIRECTION FOR 2021-22 Protect. Build. Grow...... 6

2021-22 COVID-19 RESPONSE ...... 18

2021-22 SASKATCHEWAN CAPITAL PLAN ...... 24

TECHNICAL PAPERS The Saskatchewan Economy ...... 32 2021-22 Financial Outlook ...... 41 2021-22 Borrowing and Debt ...... 56 2021-22 Revenue Initiatives ...... 61 Saskatchewan’s Tax Expenditures ...... 66 2021 Intercity Comparison of Taxes and Utilities ...... 71 2020-21 Budget Update Third Quarter ...... 75

BUDGET FINANCIAL TABLES Budget ...... 82 Statement of Accumulated Deficit ...... 83 Statement of Change in Net Debt ...... 83 Schedule of Pension Liabilities ...... 84 Schedule of Capital Assets ...... 84 Schedule of Public Debt ...... 85 Schedule of Revenue ...... 86 Glossary of Financial Terms ...... 87

SASKATCHEWAN PROVINCIAL BUDGET 21-22

GOVERNMENT DIRECTION FOR 2021-22 6 Budget 2021-22 forecast togrow, astheeffects ofthepandemicease affordable forfamilies.Theprovince’s economyis investments andincentives,willkeeplife This Budgetwillgrow Saskatchewanthrough key meet theneedsofSaskatchewanpeople. – needed services networks, distributionofnaturalgas,andother capital forpowergeneration,telecommunications municipal infrastructure. ThisBudgetincludesCrown care facilities,hospitals,schools,highwaysandvital Budget 2021-22seesinvestmentintonewlong-term This BudgetwillbuildSaskatchewan. Saskatchewan moveforward. protection ofpersonsandproperty, willhelp andassistance,the education, socialservices in healthcare, pre-K to grade12andpost-secondary in thefightagainstCOVID-19.Record investments of Saskatchewanpeopleandtheprovince’s economy This Budgetprotects thehealthandpublicsafety begins toreturn tonormal. pandemic, asmore vaccinesare received andlife It willprotect Saskatchewanpeoplethrough the Saskatchewan. The 2021-22Budgetwillprotect, buildandgrow For the Year EndedMarch31 BUDGET PROTECT. BUILD.GROW. Government Directionfor2021-22: Totals maynotadddue to rounding. Deficit Expense (millions ofdollars) Revenue

tohelpstimulatetheeconomyand

2018-19 14,502 Actual 14,769

(268)

to grow. needed toprotect people,tobuildtheprovince and resources required andwillmaketheinvestments in thecountry. ThismeansGovernment hasthe anchored by oneofthelowestnet-debt-to-GDPratios Government’s fiscalfoundation remains strong, the pandemicresponse andastrong recovery. cuts orlarge taxincreases thatwouldthreaten both Government willmanagecarefully, withoutreckless A coursehasbeensettomeetthefiscalchallenge. expected. As aresult, theplantorecover willtakelongerthan have beenimpactedbytheeffects ofthepandemic. contraction in2020meanstheprovince’s finances grow 3.4percentin2021,aprojected 4.2percent And whileSaskatchewan’s real GDPisforecast to near-term outlooklesscertain. wave ofCOVID-19inthefallandwinter, makingthe began inthesummerof2020wasmutedbyasecond significant impactofCOVID-19.Therecovery that However, ourprovince hasn’t beenimmunefrom the starts, wholesaletradeandinternationalexports. high levelsofemployment,andgrowth inhousing than mostthrough thishealthcrisis,withcontinued over time.Saskatchewan’s economyhasfared better

2019-20 15,206 14,887 Actual (319)

2020-21 Budget 16,075 13,649 (2,426)

Forecast 2020-21 15,961 14,096 (1,865)

2021-22 Budget 17,089 14,478 (2,611)

Budget 2021-22 7

660

50.1

550 46.6 43.2

38.9 440 37.5 37.5 33.4 330

21.0 19.0 19.0 220 110 0 (as of March 16, 2021) SK: Saskatchewan Ministry of Finance GDP, PE NL SK AB NS BC NB QC ON Sources: Net Debt: Jurisdictions’ most recent data Sources: Net Debt: Jurisdictions’ All others: Statistics Canada, IHS Markit MB NET DEBT AS A PER CENT OF GDP A AS NET DEBT (As at March 31, 2021) investment to build hospitals, schools, highways, infrastructure. municipal and Crown finances Responsible management of the Province’s Saskatchewan the second-highest credit has secured the when the ratings from ratings in the country, responsibly and its net-debt-to-GDP ratio is among and its net-debt-to-GDP responsibly public debt, including the debt of Crown Total to be $27.8 billion at corporations, is projected the from 31, 2022, a $4.2 billion increase March prior year. is for operations and new capital Borrowing $1.1 billion, or 7.1 per cent, from the current the current per cent, from $1.1 billion, or 7.1 2020-21 forecast. lives and livelihoods protects The 2021-22 Budget Saskatchewan to significant support by providing pandemic. the and jobs through people, the economy of health, social for the vital areas increases are There services K-12 and post-secondary and assistance, the and of persons protection education sectors, and property. debt Saskatchewan continues to manage its the lowest in the country.

maintenance and replacement. in the Expense of $17.1 billion is projected of $1.0 billion, or 2021-22 Budget, an increase budget, and up last year’s 6.3 per cent from education in line with year-over-year inflation. education in line with year-over-year electric use fee for a road This Budget will introduce This will ensure vehicles at the time of registration. users contributing to road fairness to all road deficit. Through the next three years, the fiscal path the next three deficit. Through budget and about year’s last or 6.1 per cent, from 2020-21 forecast. to increase forecast are All categories of revenue 2020-21 in the 2021-22 Budget over the current in 2020-21. provided support changes budget also includes a number of This year’s tax fairness, including the taxation of to improve to grade-12 available for pre-K revenue provincial SASKATCHEWAN’S FINANCES SASKATCHEWAN’S a $2.6 billion projects 2021-22 Budget Saskatchewan’s $1.7 billion with smaller deficits of steadily improves in 2023-24 and $770 million in 2022-23, $1.2 billion in 2024-25. finances managing the province’s By carefully make the investments needed while continuing to Government expects this recovery, for a strong in a balanced budget trajectory to continue, resulting in 2026-27. billion, up $830 million, at $14.5 Revenue is forecast the current $383 million, or 2.7 per cent higher than of net income from with the exception forecast, benefitted government business enterprises, which and lower gains last year, one-time investment from government due to the the federal transfers from discontinuation of one-time federal COVID-19 and heat-not-burn tobacco vapour products, to changes As well, the Budget introduces products. mill rates that will increase Tax Education Property 8 Budget 2021-22 2020-21. an increase of$261millionor4.5percent from people with$6.12billionin the 2021-22Budget, The MinistryofHealthwillprotect Saskatchewan Saskatchewan CancerAgencyand3SHealth. the SaskatchewanHealthAuthority, eHealth,the Funding forhealthincludestheMinistryofHealth, system toprotect familiesandcommunities. budget, willstrengthen theprovincial healthcare up $359.0millionor5.8percentfrom lastyear’s This year’s record budgetforhealthof$6.54billion, Health to 21inthe2021-22COVID-19Responsesection.) (More detailedinformationisincludedonpages18 the continuedresponse toCOVID-19. and fundingtoprotect people’s healthandsafetyin The 2021-22Budgetincludeseconomicsupport is inplaceforthenexttwoyears. 2020-21 fiscalyear. Afurther $1.3billionofsupport in thisBudget,after$2.0billionofsupport inthe in thefightagainstCOVID-19,including$1.5billion to helpprotect Saskatchewanlivesandlivelihoods Government hasdedicated$4.8billioninsupport COVID-19 Response PROTECT which beginsonpage56.) on page61andin2021-22Borrowing andDebt in the2021-22RevenueInitiativessectionbeginning 2021-22 FinancialOutlook,beginningonpage41, (More detailedinformationisavailableinthe considered. Standard andPoor’s andDBRSMorningstar, are three majoragencies–Moody’s InvestorsService,

rural andremote areas. and inexistingexpanded homecare in services 300 continuingcare aidestoworkinlong-term care $18.4 millionGovernmentcommitment tohire and medication.It’s thefirstyearofathree-year long-term care clientswithpersonalcare, meals approximately 100continuingcare aideswhohelp In thisBudget,$6.0millionwillbeusedtohire Ministry ofHealthbudget. accountfor7.5percentoftheoverall and services drug costs.Mentalhealthandaddictionsprograms physicianvisitsandprescriptionaddictions services, primarily forhospital-basedmentalhealthand The remaining $16.2millionoftheincrease is Estevan. treatment centre located atSt.Joseph’s Hospitalin plus twopre-treatment bedsattheaddiction 12 additionalprovincial addictiontreatment beds, addictions treatment. Italsoincludes$850,000for prevention andexpansionofharmreduction and youth-focused initiatives,investmentsinsuicide includingspecific health andaddictionsservices, increase includes$7.2millionfortargeted mental $23.4 millionor5.4percentfrom lastyear. The health andaddictionsprograms up andservices, This Budgetinvestsarecord $458millionformental last year. an increase of$221.4millionor5.9percentover Authority (SHA)witha$3.96billiongrantthisyear, Government willprovide theSaskatchewanHealth of addedphysiciancostsare alsopart ofthisfunding. capacity, supports forlong-termcare andcoverage and assessmentsites.Additionalprovincial laboratory contact tracingmeasures andexpansionoftesting more personalprotective equipment,supporting including themassvaccinationrollout, purchase of Saskatchewan’s comprehensive COVID-19response, A $90.0millionincrease inthisBudgetwillsupport

Budget 2021-22 9

Education spending government, including Education across $3.75 billion in this Budget, and commissions, is year. last 11.6 per cent from up $391.3 million or to pre-K will support The Ministry of Education in the Grade 12 students with $2.66 billion of $59.6 million or 2021-22 Budget, an increase 2020-21. 2.3 per cent from 27 school divisions will receive Saskatchewan’s the 2021-22 $1.96 billion in operating funding for This includes increase. a $19.2 million school year, as part fully funding the 2.0 per cent salary increase agreement. of the teachers’ collective bargaining Schools funding of Safe Federal-provincial to help school $155 million has been provided related to pre-K to Grade 12 education, post- to Grade 12 to pre-K related training programs and career secondary education the last year divisions and independent schools over during the pandemic. The funding helps protect during the pandemic. The funding helps IT equipment, staff, with more students and staff, personal protective equipment and cleaning supplies, equipment personal protective carry over into and $20.7 million of this funding will the 2021-22 school year, with $134.2 million the 2021-22 school year, 750 new licensed child commitment to provide spaces. care a nearly $1.6 million increase This Budget provides over last year for community-based organizations, operating for increased centres, including child care costs and salaries. allocated in 2020-21. of of $2 million, including an increase An increase four-year of the province’s spaces as part centre $1.1. million for community-based organizations, $1.1. million for community-based organizations, funding up to in this Budget brings child care an additional 176 new $75.5 million and will create licensed home-based spaces and 51 new licensed

the cost of –

through a through – A $1.4 million new investment will add a new STARS A $1.4 million new investment will add commitment. a Medical Services will receive Emergency for additional provide to $6.6 million increase and to address ambulances in Regina and Saskatoon patient delays when transferring patients, covering system. wait time fees and a new computer dispatch to rural faster care helicopter to deliver emergency funding for STARS provincial sites. Total and remote cover continuous glucose monitoring for children cover continuous glucose monitoring another and youth under the age of 18, fulfilling Government commitment. to Seniors will have ambulance fees reduced $275 $135 per trip, down from this Budget, meeting another in $6.7 million increase is now $11.88 million. an The Saskatchewan Cancer Agency will receive children with Autism and their families, with with Autism and their families, with children the Autism Spectrum $6.0 million to expand individualized provide to (ASD) program Disorder Pump Program Saskatchewan Insulin in for everyone be covered an insulin pump will will also Saskatchewan who needs one. The funding in additional $7.6 million or 3.9 per cent increase the 2021-22 Budget, bringing their annual grant to This funding $204 million, also the highest ever. Saskatchewan patients have access to will ensure This Budget also keeps the commitment to support This Budget also keeps funding for children ages six to 11. funding for children under the expands eligibility A $5.0 million increase and medical additional oncology drugs, treatments to achieve the best possible outcomes. resources in available funding will expand treatment Increased regional hospitals and will provide for a new medical for a new hospitals and will provide regional oncologist position plus support staff to care for to care staff oncologist position plus support Saskatchewan people. 10 Budget 2021-22 Saskatchewan. claimed thesecredits bystarting theircareers in more than75,000post-secondarygraduates have Saskatchewan andbuildtheir careers here. To date, post-secondary graduateswho remain in providing up to$20,000intaxcredits toeligible aggressive youth retention program inCanada, including theGraduateRetentionProgram, themost This Budgetbuildsuponexistingsupport programs, fulfilling aGovernmentcommitment. per eligiblestudenttohelpwithtuitioncosts, Advantage Scholarshipfrom $500to$750annually This includesanincrease intheSaskatchewan 10.0 percent. student supports, anincrease of$3.6million,or Budget 2021-22alsoincludes$39.8millionfor or 4.4percent. secondary institutions,anincrease of$28.4million The Budgetincludes$678.5millionforpost- collaboratively andisfocusedonshared priorities. commitment tothesector, whichwasdeveloped Saskatchewan isproviding amulti-yearfunding Saskatchewan’s Growth Plan.Forthefirsttime, collaboration andachievingprioritiessetoutin for: COVID-19recovery, revenue generation,sector over twoyears(2021-22and2022-23)tobeutilized Government willinvestanadditional$60million in 2021-22.Beyondthetypicalbasebudget, The Province willinvestatotalof$735million sector from thechallengescreated bythepandemic. additional fundingtoprotect thepost-secondary sustainability ofpost-secondaryinstitutionswith investment tohelpgrow thelong-termfinancial The 2021-22Budgetprovides asignificantmulti-year address additionalcostsincludinghigherenrolment. increase of$3.1millioninoperatingfundingto Qualified independentschoolswillreceive an

$2.5 millionincrease forthosesupporting at-risk with peopleintellectual disabilitiesanda including a$4.2millionincrease forthoseworking $6.7 milliontothird-party providers, service The Ministrywillprovide increased fundingof and acasemanager. intervenor, anAmericanSignLanguage interpreter funding willsupport thehiringof adeafblind Deaf andHard Inc.Thisnew ofHearingServices National InstitutefortheBlindandSaskatchewan providedcommunication services bytheCanadian Government’s commitment tofurther enhance Also, theBudgetprovides $246,000tomeet 2008 andtheincrease takeseffect July1,2021. the sixthincrease GovernmenthasmadetoSIPsince maximum paymentsincreasing by$30amonth.It’s income seniorsenjoyabetterqualityoflifewith Income Plan(SIP).Theinvestmentwillhelplow- $3.5 millioninadditionalfundingfortheSeniors commitment toincrease benefitstoseniorsthrough The 2021-22BudgetmeetsGovernment’s 4.2 percentoverlastyear. in the2021-22Budget,up$54.5millionor protect thosemostinneed,withatotal$1.34billion willsupportThe MinistryofSocialServices and Saskatchewan LegalAidCommission. through theSaskatchewanHousingCorporationand Executive Governmentministriesandspending budget,aswellsmallportionsServices ofother This themeincludestheentire MinistryofSocial 4.5 percentfrom 2020-21. $1.56 billionfor2021-22,up$66.4millionor andassistanceisbudgetedat Social services Social servicesandassistance children, youthandfamilies.

Budget 2021-22 11

increase for in-home family supports, is aimed at for in-home family supports, increase preventing children from coming into the care of coming into the care from children preventing to An additional $500,000 investment the Ministry. high-risk expectant Sanctum 1.5 will support and coordination outreach mothers with enhanced of services. Treasury Board Crown committed to the protection committed to the protection Crown Board Treasury in the province. and resources of people, property fleet. suppression wildfire the province’s This Budget includes $3.6 million to put in place in the first of four Commander aircraft, 2022 a Turbo Protection of persons and property Protection of persons comprised of is property of persons and Protection Justice and Public Safety, the ministries of Corrections Services,and Attorney General, Integrated Justice Safety and the Labour Relations and Workplace and a number Safety Agency, Saskatchewan Provincial million or 4.8 per cent of $38.6 people, an increase last year. from million to the $92.4 This Budget provides a Saskatchewan Public Safety Agency (SPSA), non-health the provincial The SPSA is coordinating the Agency’s to COVID-19 through response and this Operations Centre, Emergency Provincial Budget also includes capital investment to modernize four being put in place over the next such aircraft installment is also $9.2 million, the third years. There a CL215T Air Tanker plan to acquire of a four-year in late 2022. that will be delivered The Ministry of Justice and Attorney General will with the people of the province, protect further of $163.6 million in the 2021-22 Budget, an increase budget. $8.4 million or 5.4 per cent over last year’s of funds, commissions and authorities. will and property of persons Overall, protection see $845.1 million for the safety of Saskatchewan

providers play to protect the province’s most province’s the play to protect providers pandemic. The funding for vulnerable during the of Government’s is part Social Services providers service providers for third-party total $9.1 million lift The increase recognizes the critical role third-party critical role the recognizes The increase the ministries of also funded through which are with for children foster families to care supports intensive needs. more extended more supports A $3.0 million increase Education, Health, Justice and Attorney General and Education, Health, to increase disabilities. And it includes a $9.1 million and anticipated needs of people with current address intellectual disabilities. The 2021-22 Budget includes Government-wide of funding of $660.3 million, an increase and $48.8 million, for enhanced programming people with disabilities. utilization for increased for people Since 2007-08, Government-wide funding private treatment complex behavioral needs through homes. and group to This Budget includes a $1.6 million increase for Information, Resources implement Parent Development and Education, or PRIDE, Levels of that Pay Phase II, a specialized training program connected and helps them remain family caregivers and a $1.4 million and community, to their culture Corrections and Policing. Corrections to the increase This Budget includes a $19.0 million or Income for Disability, Saskatchewan Assured people with to support to continue SAID, program by $445 million or with disabilities has increased 207 per cent. the safety and ensure Child and Family Programs in the province well-being of vulnerable children of and the 2021-22 Budget includes an increase spaces to care $8.2 million for new residential and youth with developmental and children support 12 Budget 2021-22 of theVictim Advocate CaseReview rapid supportfamily intervention teamsandexpansion Call Lineinpartnership with211,thedevelopmentof a 24/7InterpersonalViolence andAbuseProvincial including support forapublicawareness campaign, respond tointerpersonalanddomesticviolence, Increased fundingof$800,000willbeusedto who wanttoleavegangs. toindividuals services facilities andintervention addictions programming inprovincial correctional Gang Violence Reduction Strategy, whichprovides More than$3.2millionisbeinginvestedinthe Province. transitioned from thefederalgovernmentto Saskatchewan Firearms Program whichisbeing provincial governments,willbededicatedtothe of $2.5million,fundedbyboththefederaland Ministry ofCorrections andPublicSafety. A total increase of$23.8millionor4.7percentforthe The 2021-22Budgetincludes$530.8million,an of otherCanadianjurisdictions. Saskatchewan’s policeoversightconsistentwiththat Serious IncidentResponseTeam (SIRT), making Public ComplaintsCommissiontodevelopa In thisBudget,$287,000willbeprovided tothe correctional facilities. precautionary measures beingtakenincourts and protective andother equipment,cleaningservices facilities. Thisincludesongoing costsforpersonal measures in Saskatchewan’s courts andcorrectional Nearly $4.3millionwillfundpandemic-related provincial Internet ChildExploitation(ICE)units. support policetoenhancethecapabilities ofthe mental healthcallsandapproximately $243,000will Estevan region, toaddress increased volumesof of anewPoliceandCrisisTeam (PACT) forthe Approximately $110,000willsupport thecreation

initiative.

building andimproving theprovince’s roads and will invest$830millionintooperating,maintaining, In 2021-22,theGovernmentofSaskatchewan purchase ofneededequipment. renewal ofmany healthcare facilitiesandthe across theprovince. Investmenthasalsoledtothe Moose Jawand15newlong-termcare facilities Battleford, the Dr. F. H.Wigmore Hospitalin Children’s Hospital,Saskatchewan HospitalNorth has builthospitals,includingtheJimPattison Since 2008-09,more than$1.9billionininvestment Victoria Hospital. program anddesignplansforthePrinceAlbert $1.4 milliontoallowforongoingworkonthe urgent care centres inSaskatoonandRegina Weyburn Hospitalplanningstage,$5.7millionfor This Budgetalsoincudes$1.4millionforthe and Regina. long-term care facilitiesinEstevan,Watson and $1.1milliontobeginplanningactivitiesfor for the80-bedLaRongelong-termcare facility future Grenfell long-term care facility, $7.6million health care capital,including$3.6millionforthe The 2021-22Budgetinvests$162.0millioninto and create jobs. since 2008-09hashelpedstimulatetheeconomy Saskatchewan Crowns andExecutiveGovernment investment ofcloseto$37billionincapitalthrough Including $3.1billioninthisyear’s budget,record economic recovery. a strong capitalplanwillbethefoundationofits pandemic, theprovince willfocusongrowth and As Saskatchewanrecovers from theeffects ofthe BUILD

Budget 2021-22 13

–

a transformational This includes completing the construction of a new This includes completing elementary school in Weyburn, and beginning in Weyburn, elementary school joint-use facility with two construction on a new and Argyle in Regina to replace elementary schools This includes commitments under infrastructure. and agreements, infrastructure federal-provincial Assistance for People investments such as Transit with Disabilities. Since 2008-09, close to $2.2 billion has been invested in municipal infrastructure. St. Pius elementary schools. St. Pius elementary poised are the province throughout Many projects and begin construction as early to complete design will also provide as spring of 2022. Government of its stimulus funding to $8.8 million as part $10.3 million will funding. A further and emergency This Budget includes $244.6 million for municipal complete 15 maintenance projects, the second year complete 15 maintenance projects, million of a $25.9 million commitment, and $67.9 maintenance, renewal will fund ongoing preventative classrooms. fund relocatable $2.1 billion has been Since 2008-09, approximately to undertake invested to build 57 new schools and projects. 28 major renovation in The 2021-22 Budget incudes $324.2 million of an increase government services infrastructure, It includes $109.3 million over last year. remand $52.0 million for the construction of the and Centre Correctional at the Saskatoon centre and expand the Saskatoon $3.8 million to replace urban camp. Centre Correctional is also $66 million for maintenance and There upgrades to dams and canals and $18.9 million for phase one of the Lake Diefenbaker Irrigation – Expansion Project Westside expected to cost $4 billion. multi-year project

passing lanes and improvements on Highway 39 passing lanes and improvements Corrine to Estevan. from investment also includes $33.1 million Government’s from Saskatoon to Highway 2, and completing Saskatoon to Highway from for infrastructure to municipal in transfers related program, the Rural Integrated Roads for Growth and the the Urban Highway Connector Program with Program, Partnership Community Airport Rail $530,000 in this Budget for a new Short-line two sets of passing lanes and widening on Highway 5 two sets of passing lanes and widening the industry. to support Program Infrastructure multiple stimulus passing lane projects on multiple stimulus passing lane projects Highways 2, 3, 12, 14 and 16. of passing lanes on sets It also includes three border, to the Alberta Kindersley Highway 7, from has than $10.6 billion budget, more this year’s With appropriation, an increase of $115 million or an increase appropriation, 16 per cent. invests $553.2 million into The 2021-22 Budget capital, up $108.5 million in 2021-22. transportation million for investments into This includes $520.1 safety and efficiency to improve capital projects twinning on key highway corridors, beginning and work on Highway 3 west of Prince Albert since infrastructure been invested into transportation of than 17,100 kilometers more 2008, improving which will build 21 ongoing capital projects support five. 16 new schools and renovate highways, the total Ministry of Highways highways, the total provincial highways. provincial The 2021-22 Budget includes $189.9 million for of $22.3 million or education capital, an increase 13.3 per cent. This budget has $101.9 million to 14 Budget 2021-22 on page24.) 2021-22 SaskatchewanCapital Planwhichbegins (More informationisavailableinthe goal, tobuildastrong Saskatchewan. The investmentsinthisBudgetmovetoward that Government andtheCrowns overthenextdecade. $30 billionincapitalinvestmentbyExecutive The Province’s Growth Plantargets afurther among manyotherprojects. distribution, andwaterwastewatersystems networks andnaturalgastransportation and transmission anddistribution,telecommunications corporations hasimproved powergeneration, investment through Saskatchewan’s Crown Since 2008,approximately $20.4billionin for ruralcustomers. $7.5 millionaimedatimproving cellularservices program in2021-22withaninvestmentof complete its$107millionWireless Saskatchewan at connectingpeopletotheirworld.SaskTel will improve itsnetworksdedicatedtobeingthebest Budget, SaskTel isinvesting$323.2millionto increased demandinagrowing province. Inthis expansion ofthetransmissionsystemtomeet province’s naturalgasdistributionsystem,including SaskEnergy isinvesting$276.8millioninthe to ensuringreliability oftheelectricalgrid. 28 percentofSaskPower’s capitalplandedicated investment toarecord high$272.0million–fully coming year, bringingthetotalsustainment by $50millionofeconomicstimuluscapitalinthe SaskPower’s sustainmentprogram isbeingsupported maintain reliability. province’s electricitysystemtomeetdemandand $937.6 millionbySaskPowertoimprove the major capitalinvestmentsinthisBudget,including Crown corporationswillspend$1.6billionon

and ensuringthatnotonlymore markets are sought, on competitiveness,increasing trade,growing exports outlined intheGrowth Plan,theprovince willfocus towards creating newjobsoverthenextdecadeas As Saskatchewan’s economyrecovers andmoves the competenciestobeproductive andcompetitive. ensure employers haveaskilledworkforce with for theCanada-SaskatchewanJobGranttohelp also provides $8.1million,anincrease of$700,000 need toparticipate inthelabourforce. TheBudget barriers, provide supports anddevelopskillspeople Assistance forPeoplewithDisabilities,toremove federal funding,isbeingprovided forEmployment Nearly $18million,including$8millioninone-time pandemic. strengthen Saskatchewan’s recovery from the for additionalprograms andprojects thatwill including $17millioninone-timefederalfunding workforce development ofmore than$39million, The 2021-22Budgetincludesrecord fundingfor prepare for, secure andmaintainemployment. recruit andtrainworkerstohelpindividuals programs tohelpemployersdevelop, andservices Training, theProvince investsinanumberof Through theMinistryofImmigrationandCareer to continuedgrowth. to buildtheirfuture inSaskatchewanisfundamental in thisprovince andtoattractnewcomerswhowant Creating opportunities forpeopletopursuecareers new jobsoverthenextdecade. goals ofastrong economy, agrowing province and Government remains committedtoits As Saskatchewanemerges from thepandemic, GROW sold around theworld. but thatvalueisaddedtoSaskatchewan products

Growth Plan

Budget 2021-22 15

foreign investment and give our exporters an investment and give our exporters foreign who understand the business advantage with people culture, rules and regulations in key markets. rules and regulations culture, includes $174.8 million for The 2021-22 Budget 2.0 per cent from pandemic. The rate was reduced October 1, 2020 and will provide effective to zero small $96 million in tax savings to Saskatchewan pandemic. The new Saskatchewan Home Renovation Tax on up to a 10.5 per cent tax credit provides Credit continuation of the Saskatchewan Economic continuation of the all began providing Recovery Rebate which businesses and individuals, SaskPower customers, bills last on their power rebate with a 10 per cent $285 million announced the previously In May, year. $285, on will provide rebate Auto Fund recovery average, to all Saskatchewan vehicle owners. people in 2021 Saskatchewan these rebates, With the country – will pay the lowest total utility rates in money more by putting affordable making life more pockets, which in back in Saskatchewan residents’ from recovery province’s the turn will strengthen the pandemic. reduction The temporary small business tax rate the through will help Saskatchewan small businesses to businesses in 2021-22. The rate will increase to 2.0 per cent 1.0 per cent July 1, 2022 and return the from on July 1, 2023 as Saskatchewan recovers done between $20,000 of eligible home renovations October 1, 2020 and December 31, 2022, beginning with the 2021 tax year. of to cover $66.4 million is forecast The tax credit jobs in the building trades costs in 2021-22, creating for Saskatchewan affordable and making life more people.

modernizing and expanding the High Water-Cut modernizing and expanding the High projects, invest in new methane emissions reduction an and introduces on sodium sulphate production, by establishing presence expand Saskatchewan’s investment and create jobs in the oil sector by jobs in the oil sector investment and create status of high-water royalty changing the Program, the wells water handling. The change will make greater and promote viable for producers more overall production. with oil producers And this Budget will provide to help them relief $3.8 million in annual royalty and commercialization capture and help support rather than venting and flaring. rate the royalty The Budget will simplify and reduce to encourage credit capital investment improved by $5.0 million, to $9.3 million. The Ministry offices Development will work to and Export of Trade in four international trade and investment offices additional locations, which will be announced in the will complement coming months. The new offices gas well sites. to attract measures This Budget takes further make new investments in who wells for producers presence added value and enhance Saskatchewan’s markets. potash fertilizer in growing markets, the of export growth ensure To funding for international 2021-22 Budget increases in China, India, Japan and Singapore. existing offices Saskatchewan-based oil and gas serviceSaskatchewan-based companies The program than 2,000 jobs in the sector. and more and cleans up abandoned oil and is federally funded will focus on diversifying in these offices Officials markets, connecting Saskatchewan businesses with The 2021-22 Budget includes $200 million for the The 2021-22 Budget Accelerated Site Closure Program (ASCP) to support Program Accelerated Site Closure investors and customers. They will encourage direct 16 Budget 2021-22 attract visitorsfrom around theworld. 2030. Saskatchewan’s naturalbeautyandparks expenditures inSaskatchewanby50per centby The development andproduction ofnewvaccines. Saskatchewan aleaderinCanadaresearch, pandemics. TheworkbeingdoneatVIDOwillmake Canadians through thecurrent andanyfuture Domestic vaccineproduction isvitaltoprotecting construction ofanewvaccinemanufacturingfacility. $4.2 millionforvaccinedevelopmentandtosupport VIDO’s Centre forPandemicResearch and previous commitmentsof$15milliontosupport Disease Organization (VIDO),inadditionto operating fundingtogrow theVaccine andInfectious And thisBudgetincludesmore than$4millionin Saskatchewan’s globalleadership intheag-techsector. commitment announcedlastsummertofurther This initialinvestmentispart ofthe$15million into anagriculturaltechnologyventure capitalfund. This Budgetincludes$3.0millionforinvestment 62 techcompanies,creating 144newjobs. attracted $22.0millionininvestment,benefiting Saskatchewan investors.To date,theincentivehas offers anon-refundable 45percenttaxcredit to products tomarketandcreate jobs.Theprogram encourage investmentintechnology, bringnew Technology Start-up Incentiveforfiveyears,to The 2021-22BudgetextendstheSaskatchewan opportunities, businessattractionandemployment. crops whichleadstovalue-addedprocessing Irrigation supports thegrowth ofdiverse,high-value land andwaterresources, agoalinthe Agriculture, thisfundingwillhelpfurther develop announced in2020.Through theMinistryof the LakeDiefenbakerirrigationexpansionproject irrigation developmentprojects intheareas outside This Budgetincludesanadditional$2.5millionfor Growth Plansetsagoalofincreasing tourist

Growth Plan.

rural, urbanandnorthern communities. predictable source offundingforSaskatchewan’s increased by118percentandhasprovided astable, Since 2007-08,MunicipalRevenue Sharinghas through $276 millioninMunicipalRevenueSharing. The 2021-22Budgetstrengthens communities our economystrong. enhance qualityoflifeandcreate jobswhilekeeping These commitmentshelpSaskatchewangrow, with adisability. provides an extra$50perchildtofamiliesofchildren sport, recreation andculturalactivities.Thebenefit for familiesbyproviding $150perchildenrolled in promised byGovernment,helpingkeeplifeaffordable The ActiveFamiliesBenefithasbeenrestarted, as by Government. $1.5 millionin2021-22,anothercommitmentkept Club Support Program willgrow from $100,000to funding through theSaskatchewanVeteran Service families andcommunitiesinSaskatchewan.Total clubs providing support forveteransandtheir The 2021-22Budgethelpstheviabilityofservice more than350communities. improvements formore than600icesurfaces in COVID-related costsandminorcapital program helpscovereligibleoperatingcosts, providing $2,500pericesurface. The$1.7million affordability grant,aGovernmentcommitment continue togrow byreinstating theCommunityRink This BudgetalsohelpsSaskatchewancommunities parks. Parks, amonganumberofenhancementsatseveral Blackstrap, EchoValley andBuffalo PoundProvincial Cypress Hillsandnewgroup pavilionsatPikeLake, campgrounddevelopment ofanewserviced at capital projects andupgrades,includingthe In thisBudget,$16.5millionwillbeinvestedin

Budget 2021-22 17

investment comes into our province. for The 2021-22 Budget is the right budget growth, as our economy recovers and more recovers as our economy growth, protect Saskatchewan people. The priority is to people and businesses by investing in needed education, social services and assistance and jobs. will help our economy and create for is ready Saskatchewan This Budget ensures servicessupport, and programs. By building, by investing in needed capital, our And it is the right plan to help Saskatchewan recover to and to plan a post-pandemic path and grow, normal. It provides direct funding to fight the direct normal. It provides investments in health care, pandemic, and record property. of persons and protection of $3.1 billion This Budget builds. Capital investment Government will help keep Saskatchewan strong. balance. Saskatchewan. builds and grows This Budget protects, the through a clear course for our province It charts of the pandemic and into the strong remainder that will follow. recovery become vaccinated and life begins to return to become vaccinated and life begins to return PROTECT. BUILD. GROW. BUILD. GROW. PROTECT. Saskatchewan The 2021-22 Budget will protect of the pandemic, as more the rest people through income and sales tax in 2021 compared to 2007. to in 2021 compared income and sales tax A Saskatchewan family of four with $100,000 in A Saskatchewan family less in combined provincial total income pays $1,918 with income of $40,000 pays In 2021, an individual $744 less in combined provincial income and sales income provincial $744 less in combined tax than in 2007, when the enhanced Saskatchewan tax than in 2007, when in. factored is Credit Low-Income Tax

This Budget includes more than $465 million of total than $465 million more This Budget includes investment into municipalities, including revenue investment into municipalities, of infrastructure portion sharing, the province’s funding and a number of grants and initiatives from funding and a number multiple Government ministries. multiple Government includes $193.6 million in The 2021-22 Budget the lowest personal taxes in the country. (PIT) exemptions Since 2007, Personal Income Tax the province’s people from 112,000 have removed introduced In total, PIT reductions income tax roll. they begin paying provincial twice as much before targeted investment that will help meet the priorities investment that will help targeted organizations. pandemic This includes $35 million in emergency affordable make life more the ability to It provides has among for Saskatchewan people. Our province over providing over the past 12 years are $700 million in annual income tax savings to Saskatchewan people. annual indexation Government has reintroduced income tax brackets, ensuring that of the provincial by inflation. not eroded these tax savings are In 2021, a Saskatchewan family of four can earn income tax than they could in 2007. A family of four income tax on their first $52,250 pays no provincial of combined income. In 2007, a family of four began income tax once their combined paying provincial just $26,150. income reached of Indigenous communities, businesses and of Indigenous communities, transfers to gaming agreement replacing support as casinos First Nations and Métis organizations, continue to be impacted by the pandemic. economy and a strong The purpose of growing to normal the pandemic and as life begins to return is to build a better quality of life for Saskatchewan families. supporting strong communities as we recover from communities as we recover strong supporting 18 Budget 2021-22 Government’s response is$4.8billionineconomic, following more than$1.9billionin2020-21,fora The 2021-22Budgetincludes$1.5billioninsupport, in capitalandtohelptheeconomyrecover andgrow. people andbusinessesthrough thepandemic,toinvest health andsafetysupport toprotect Saskatchewan 2021-22 COVID-19RESPONSE COVID-19 SUPPORTS Small BusinessEmergencyPaymentProgram Other Measures Saskatchewan Tourism SectorSupportProgram Home Renovation Tax Credit SaskPower CustomerRebateProgram Immigration andCareer Training Supports Post-secondary Supports Small Business Tax RateReduction Accelerated SiteClosureProgram Emergency PandemicSupport Auto FundRecoveryRebate Saskatchewan Temporary Wage SupplementProgram Saskatchewan CapitalPlan Economic Support Canada-Saskatchewan SafeRestart Agreement Health SectorResponse Health andPublicSafety Total GovernmentSupport Deferral Programs Total DirectSupport Total Economic Support Agriculture SectorSupport Relief fortheOilandGasSector Total HealthandPublicSafety U ofSVaccine andInfectiousDiseaseOrganization (millions ofdollars) Other Measures Northern IsolationSupportProgram Saskatchewan SafeSchoolsPlan

– GamingPartnerGrants

help theprovince’s economyrecover. years tocontinuehelpSaskatchewanpeopleand More than$1.3billionisplannedoverthenexttwo pandemic. total of$3.4billionsincethestart oftheCOVID-19

2020-21 1,568.0 1,950.2 100.0 405.4 338.1 658.9 382.2 909.1 134.2 70.0 38.0 35.0 17.0 12.9 85.2 45.1 50.0 56.0 26.0 15.0 17.5 35.2 75.6 7.0 4.8 –

2021-22 1,509.1 1,386.6 1,509.1 174.8 200.0 285.0 488.1 122.5 27.3 66.4 30.0 64.6 39.0 90.0 20.7 6.4 5.0 5.0 6.8 – – – – – – –

1,106.5 1,321.3 1,321.3 1,321.3 Future Years 100.0 44.7 30.0 40.1 – – – – – – – – – – – – – – – – – –

2,000.0 4,398.4 3,617.0 4,780.6 400.0 260.0 124.0 285.0 149.8 338.1 781.4 382.2 165.6 154.9 Total 70.0 44.4 40.0 44.3 67.0 89.0 56.0 26.0 15.0 17.5 40.2 11.6

Budget 2021-22 19

Ministry of Education ($20.6 million) for child care Ministry of Education ministries workers; and to various other for returning tracing and data management; to the Ministry of tracing and data management; ($70.4 million) for Government Relations Ministries of Social Servicesmunicipalities; to the Policing and Public Safety and Corrections, vulnerable populations; to the ($26.0 million) for equipment. protective ($3.0 million) for personal to The Government is committing $15 million is University of Saskatchewan. The commitment committing contingent on the Government of Canada further support pandemic research by the Vaccine by the Vaccine research pandemic support further (VIDO) at the and Infectious Disease Organization to the project. for health sector provided was $75.6 million There response, and $4.8 million for the Northern Isolation for the Northern and $4.8 million response, Program. Support Supplement Wage The Saskatchewan Temporary program is a $56.0 million federal-provincial cost- federal-provincial is a $56.0 million program temporary top-ups to the providing program shared salaries of workers who provide care to some of the care salaries of workers who provide the pandemic. most vulnerable, through province’s safety And $35.2 million in other health and includes online systems and facility measures enhancements in the justice system during the pandemic, as well as additional costs for custody services. Also, the Saskatchewan Public Safety Agency costs include expenses for the for COVID-19 response equipment, checkpoints, communications protective for upgrades to the funding was provided Saskatchewan Polytechnic Dental Lab facility to compliance with COVID-19 protocols. ensure Provincial Emergency Operations Centre. Personal Operations Centre. Emergency Provincial among the costs. And and other services were

HEALTH AND PUBLIC SAFETY AND PUBLIC SAFETY HEALTH SUPPORT IN 2020-21 $338.1 million The federal government provided through the Canada-Saskatchewan Safe Restart through of the the safe re-opening to support Agreement mental health and substance abuse support, capacity, equipment, and testing, contact personal protective provincial economy and to help with costs associated provincial the pandemic. people through with protecting funding has been fully allocated to the Safe Restart Ministry of Health ($218.1 million) for health care HEALTH AND PUBLIC SAFETY AND PUBLIC HEALTH 2021-22 SUPPORT IN includes $90.0 million in health The 2021-22 Budget Ministry of Health, to the through sector response provide testing equipment, personal protective provide operating costs to address equipment and to fund the pandemic. under A total of $155 million will be invested the Saskatchewan Safe Schools Plan, including $20.7 million $134.2 million in 2020-21 and another to in 2021-22 for school divisions to continue to classrooms. the safe return support the Northern This Budget includes $6.8 million for units as accommodations and mobile residential of a temporary community housing solution. part $4.2 million for justice and include Other measures to $800,000 extending care facilities and corrections youth during the pandemic who will otherwise age out of care. Isolation Support Program, as part of an agreement as part Program, Isolation Support in with the federal government to help individuals isolate. The program locations voluntarily remote commercial access to suitable will provide 20 Budget 2021-22 Saskatchewan recovers from thepandemic. and return to2.0percentonJuly1,2023 as rate willincrease to1.0percentJuly1, 2022 2.0 to0.0percent,effective October1,2020.The tax revenue in2021-22,theratewasreduced from pandemic. Atacostof$64.6millioninforgone Saskatchewan smallbusinessesthrough the The smallbusinesstaxratereduction willprotect environment andproviding economicstimulus. reclamation workintheoilpatch,helping the pandemic,withworkonsiteabandonmentand companiesthrough2021-22 tohelpoilfieldservice Closure Program sees$200 millionbudgetedin The three-year, $400million federalAcceleratedSite bundle ofutilities. will paythelowestratesincountryontheir With theserebates factored in,Saskatchewanpeople in 2021-22,after$85.2millionlastyear. from COVID-19.Intotal,therebate is$174.8million bills, tosupport Saskatchewan’s economicrecovery 10 percentrebate onelectricitycharges onpower All SaskPowercustomerswillreceive aone-year, Saskatchewan driversinMay. announced inFebruary, andistobeprovided to The fullrebate from the AutoFundis$285million, vehicle premiums paidintheprevious three years. of $285,onaverage,calculatedaproportion of Saskatchewan driverswillreceive aone-timerebate Plan, following$405.4millionin2020-21. on majorprojects, describedinthe2021-22Capital infrastructure investmentonneededmaintenanceand $488.1 millioninstimulusspendingistargeted to create jobsintheyearsahead.In2021-22Budget, booster tohelptheprovince’s economyrecover and incremental infrastructure funding,astimulus Last year, Governmentannounced$2billionin ECONOMIC SUPPORTIN2021-22

$6.4 millioninothersupports, includinganestimated support through the program lastyear. There isalso of atleast30percent,following$35.0millionin businesses whohaveexperiencedalossofsalesrevenue Sector Support Program tohelptourism-related There is$5.0 millionfortheSaskatchewanTourism Ministry ofImmigrationandCareer Training. and financialsupports foremployers through the disadvantaged bythepandemicwithtrainingsupport due toborder closures, andtohelpthose immigrate toSaskatchewanandaddress thebacklog Settlement program, tohelppeopleseeking Saskatchewan Jobgrant,andtheNewcomer for PersonswithDisabilitiestop-up,theCanada- for Workforce Development,EmployabilityAssistance This Budgethas$27.3millioninincreased funding provided. 2020-21, $7.0millioninCOVID-19response was through theMinistryofAdvanceEducation.In year fundingplanforpost-secondaryinstitutions, $60 millionCOVID-19response packageandmulti- The 2021-22Budgethas$30millionaspart ofa $50 millionin2021-22. Initiatives Fund.Theemergency grantstotaled and Métisorganizations, andtheCommunity are providing pandemic support forFirstNations pandemic response gamingpartner grantsin 2021-22 result ofcasinoclosures, $39millioninemergency In recognition oflostgamingtransferrevenue asa program, including$66.4millionin2021-22. save taxpayers$124millionoverthelifeof with the2021taxyear. Thetaxcredit isforecast to October 1,2020andDecember31,2022,beginning $20,000 ofeligiblehomerenovations donebetween will provide a10.5percenttaxcredit onupto The newSaskatchewanHomeRenovationTax Credit increased capitalgrantsto regional parks. putting amoratorium ontheirfees,and$77,000 for $754,000 inreduced revenue, tohelpoutfittersby $5.6 millionforincreased VLT sitecommissions,

Budget 2021-22 21

supporting oil field servicesupporting companies. continues, Credit The Home Renovation Tax PROGRAMS DEFERRAL allowed businesses, In 2020-21, Government to temporarily defer the taxpayers and ratepayers their taxes and fees to support payment of certain Sales Tax of Provincial Deferrals cash flow. bills, Education Property utility Crown remittance, moratorium on collection and an interest-free Tax FUTURE SUPPORT of the remainder $1.1 billion, Approximately to major the capital stimulus plan, is allocated years beyond 2021-22, to projects infrastructure jobs and help to create help the economy recover, Saskatchewan grow. year of the In addition, $100 million for the final Site $400 million federally funded Accelerated will be allocated in 2022-23, Program Closure for Saskatchewan people $44.7 million providing Rate Tax and helping businesses. The Small Business student loans totaled $382.2 million. student loans totaled $40.1 million in Reduction continues, providing beyond 2021-22. relief An additional $30 million in 2022-23 for COVID-19 response and multi-year funding will be provided for and multi-year funding will be provided response post-secondary institutions.

variety of initiatives to support businesses and variety of initiatives to support site commission increases, individuals, including VLT Rent Assistance, Commercial Canada Emergency the Self-Isolation Support, Junior Hockey Support, emerge. Program Payment Emergency The Small Business million in grants for $70.0 to provide is forecast affected enterprises directly small and medium-sized uncertainty. went to a And $38.0 million in other measures Conexus Subsidy, Re-Open Saskatchewan Training and the Buy Local Campaign. funding Centre Arts ECONOMIC SUPPORT IN 2020-21 ECONOMIC SUPPORT in 2020-21 provided that were A number of supports unique to the year that saw the pandemic were to COVID-19, up related by public health orders to $5,000. $26 million Relief for the oil and gas sector provided of the Oil and Gas portion the industry to reduce a series Administrative Levy by 50 per cent, extended by a year of filing and other deadlines, extended in 2020 scheduled to expire mineral rights that were lease holdings. and allowed industry to reduce Livestock Price the Western Response and through market disruption and COVID-19 related through And agricultural sector support in the 2020-21 Budget And agricultural sector support AgriRecovery totaled $17.5 million, through producers helped support that Insurance program

SASKATCHEWAN PROVINCIAL BUDGET 21-22

SASKATCHEWAN CAPITAL PLAN 24 Budget 2021-22 Crown sector. Government andSaskatchewan’s commercial to beprovided in2021-22through Executive over thenextfouryears,whichincludes$3.1billion recovery withprojected spendingof$11.6billion Government’s commitment tostimulateeconomic Capital Plancontributestoward thisgoalandfurthers people ofSaskatchewan.The2021-22Saskatchewan growing province andabetterqualityoflifeforthe infrastructure spendingby2030tosupport a Saskatchewan’s Growth Plantargets $30billionof CAPITAL PLANHIGHLIGHTS CAPITAL PLAN Protect. Build.Grow. 2021-22 SASKATCHEWAN CAPITAL PLAN

Billions of Dollars 2008-09 Actual 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

2009-10 Actual 1.4 0.8 2.2

2010-11 Actual 1.1 2.0 0.9

2011-12 Actual 1.2 1.0 2.2 Executive Government MinistriesandAgencies Executive Government

2012-13 Actual 1.1 1.7 0.6

2013-14 Actual 1.6 2.4 0.8

2014-15 Actual 0.8 2.0 2.8

2015-16 Actual 1.0 2.0 3.0

2016-17 Actual 1.9 1.2 3.1

2017-18 Actual 1.8 1.4

3.2

2018-19 Actual 1.6 1.6 3.2

2019-20 Actual and publicutilityenhancementsacross theprovince. educational facilities,transportation infrastructure, construction andrehabilitation ofhealthand infrastructure investments.Thisincludesthe committed closeto$37billiontowards provincial amounts provided inthisBudget,Saskatchewanhas continued success.Since2008-09,includingthe local jobcreation andensure Saskatchewan’s to address essentialinfrastructure needs,encourage plan provides fundingfornewandongoingprojects infrastructure, bothnowandintothefuture. This Government willinvestinnewandexisting To 1.5 1.2 2.7 Protect, BuildandGrow Saskatchewan, 2020-21 Budget 1.1 2.5 1.4

2020-21 Forecast 3.1 1.7 1.4 Commercial Crowns

2021-22 Budget 2.8 1.4 1.4

2022-23 Projected . 1.5 1.5 1.6 . 3.1 3.1

2023-24 Projected 1.6

2024-25 Projected 1.4 2.9 1.5 1.3 1.2 2.5

Budget 2021-22 25

2.2 7.6 9.8

9.4

3.8

2024-25

332.0 19.5

178.8

30.0

67.9

25.4

52.5

23.1 253.8

Projected

162.4 17.2

1,195.2 708.3 222.4

397.8

1,328.5

2,523.7

8.7 9.4

9.4

3.8

19.5

67.9

24.3

52.5

29.6

17.2

Projected

341.0

315.6

114.8

23.1 179.8

175.9

2023-24

1,392.5 844.3 263.3

366.4

1,474.0

2,866.5

9.8

9.7

27.0

67.9

23.3

52.5 28.3

26.8

11.8

Projected

378.1

291.0

156.5

146.2 42.4 70.6

116.1

2022-23

1,458.0 975.2 256.9

355.9

1,588.0

3,046.0

Budget

520.1 33.1

244.6

113.3 76.7

29.4

81.2 21.1 59.8 44.3 81.4 70.1 16.5 27.7 25.5

58.7

2021-22

1,503.3 937.6 276.8

399.0

1,613.4

3,116.7

93.9

39.1 investments. The plan is detailed as follows: investments. The plan The plan outlines projects approved to date and approved The plan outlines projects capital an estimate of anticipated future provides

Forecast

468.1 46.9

310.3 49.9

79.3

34.8

18.3

28.9 16.4 110.7 37.7 13.0 23.6 28.9

2020-21

1,399.8 743.6 252.8

383.0

1,379.4

2,779.2

33.5

87.9

79.8

33.0

93.9 49.4 42.1 29.3 25.0 81.1 13.0 23.5 12.8

30.1

411.1

315.7

845.7 406.7

495.5

1,747.9

3,109.1

Budget

2020-21

1,361.2

2021-22 TO 2024-25 – 2021-22 TO

(Millions of Dollars)

Executive Government Ministries Government and Agencies Executive

Transportation Infrastructure Transportation Highways Capital Highways Highways Partnerships and SupportingHighways Capital

Municipal Infrastructure Municipal Programs Education Capital School Capital

Maintenance Capital

Advanced Education Advanced Maintenance Capital

Health Care Maintenance Capital Government ServicesGovernment Health IT and Equipment Capital Health Facilities IT Capital Dams and Water Supply Channels Water Dams and and EquipmentCourts and Corrections Facilities Capital Parks Equipment Capital Government Buildings Government

Targeted and Other Capital Targeted

Total Executive Government Ministries Government and Agencies Executive Total

Crowns SaskEnergy SaskPower

Others

Total Crowns Total

Total Capital Plan Total toward the Growth Plan’s target of $30 billion in target Plan’s the Growth toward and furthers Government’s spending infrastructure economic recovery. commitment to stimulate The 2021-22 Saskatchewan Capital Plan contributes The 2021-22 Saskatchewan SASKATCHEWAN CAPITAL PLAN CAPITAL SASKATCHEWAN 26 Budget 2021-22 been includedintheCapitalPlan. vary foreachstream, andfundingrequirements have The deliveryandcompletionofthestimulusprojects • • • • following project streams. The stimulusfundinghasbeenfullyallocatedtothe economic recovery andencouragelocaljobcreation. $2 billionininfrastructure investmentstostimulate In 2020-21,Governmentannouncedanadditional $2 BillionStimulusFund end of2021-22. ready projects thatmustbecompletedbythe been transferred tomunicipalitiesforshovel- communities across theprovince. Fundshave to support infrastructure projects in the MunicipalEconomicEnhancementProgram $150 millioninpercapitapaymentsthrough end of2021-22. projects are scheduled to becompletedbythe costs through energy efficiency. Renewal and third-party assetsandreduce operating reduce deferred maintenance onprovincial Nearly $170millionforrenewal projects to spending willoccurin2021-22. by theendof2022-23,andmajority These projects are scheduled tobecompleted lanes, upgradestomunicipalroads andairports. for thinmembranesurface upgrades,passing More than$300millionforhighwayprojects the longterm. multiple yearsbutwillsupport growth over and are scheduledtobecompletedover are inadvancedplanninganddesigningstages, infrastructure projects. Mostoftheseprojects Approximately $1.4billionforlarge

Highway 7– twinning projects. Thisincludespassinglaneson and constructingseveralpassinglanes that allowtheprovince tocontinuedesigning The 2021-22Budgetprovides formajorprojects provincial highwayswillbeimproved in2021-22. 24 percentovertheprioryear, and1,350kmof represents anincrease ofnearly$109millionor of $553.2millioninthe2021-22Budget.Theamount infrastructure across theprovince, includingatotal $1.7 billionincapitalinvestmentsfortransportation The four-year planprojects approximately Transportation Infrastructure CAPITAL PLANDETAILS improving intersection androad safety. of thefive-year$100millioncommitmentto 2021-22 Budgetincludesfundingforthethird year be oneofGovernment’s highestpriorities.The Protecting drivers withsafehighwayscontinuesto Rowan’s Ravine. Highway 19;and322,GlenHarbourto Lake Alma;Highway43,Gravelbourg toeastof Grasslands NationalPark;Highway18,westof upgrades includeHighway4,U.S.border to $180 milliontodeliver280kmofupgrades.These in ruralprovincial highwaysbyproviding over Budget 2021-22includesarecord levelofinvestment Prince Albert. beginning workontwinningHighway3westof Highway 5– border, Highway39– KindersleytotheSaskatchewan-Alberta SaskatoontoHighway2,aswell CorrinetoEstevan,

Budget 2021-22 27

invested to support municipal infrastructure projects. Since 2008-09, close to $2.2 billion has been Since 2008-09, close to $2.2 billion has elementary schools in Saskatoon; a replacement for elementary schools in Saskatoon; a replacement recognition of this, the plan will invest $695 million of this, the recognition schools. over the next four years into Saskatchewan’s approximately The 2021-22 Budget provides as continuing $190 million for new initiatives, as well and construction renovation for the repair, support the province. of schools across $65.4 million to The 2021-22 Budget provides complete the design phase and begin construction as early as spring 2022. for 13 school projects include the consolidation of These projects and Pleasant Hill Princess Alexandra, King George St. Frances Elementary School in Saskatoon; a new Francophone elementary school in Regina; a new Harbour Landing joint-use facility in Regina’s Education Capital integral to K-12 facilities are Saskatchewan’s communities. In our building and growing and amenity improvements to the Shakespeare on the to the Shakespeare and amenity improvements site in Saskatoon, a recreational Saskatchewan festival the ultraviolet water complex in Assiniboia, Combined, these programs build our communities build our communities Combined, these programs as upgrades funding for initiatives such by providing system in Shaunavon, sewer disinfection project in and a lagoon project upgrades in Yorkton, among many others. Kindersley,

The 2021-22 Budget represents an increase of an increase The 2021-22 Budget represents nearly $109 million over the prior year and nearly $109 million over the prior year continues funding for key stimulus projects. as well as the construction and completion of the as well as the construction and completion West Yorkton Regina Bypass, the Estevan Bypass, the and in Martensville Route, and interchanges Truck highways, numerous bridge and culvert replacements, and culvert bridge highways, numerous among others. Warman, as well agreements, infrastructure federal-provincial Over $1 billion in capital spending will be provided improvements to more than 17,100 km of provincial to more improvements Municipal Infrastructure over the projects municipal infrastructure to support next four years, including $244.6 million in the 2021-22 Budget. This includes commitments under Assistance for People such as Transit as programs with Disabilities. In addition to this funding, includes support to economic growth and safety on to economic growth includes support the Urban Highway through urban municipalities Connector Program. been Since 2008-09, almost $10.6 billion has in resulting infrastructure, invested in transportation $275.7 million Saskatchewan will also provide the Municipal Revenue Sharing program through in 2021-22. approximately $33 million in capital grants. This $33 million in capital grants. approximately the Rural Integrated through rural municipal roads with and partnerships Program Roads for Growth The 2021-22 Budget supports municipal and supports The 2021-22 Budget by providing infrastructure transportation regional 28 Budget 2021-22 classrooms. Budget alsoincludes$10.3millionforrelocatable space toaccommodateincreases inenrolments, the To meetthe immediateneedsforadditionalclassroom reconstructions. asacost-effectiveand serves alternativetomajor facilities, provides forenergy efficiency upgrades, focus asitextendstheusefullifeofexistingschool and renewal ofexistingfacilitiesremain aprimary maintenance ofK-12schools.Preventive maintenance The Budgetalsoprovides $76.7millionforthe Athol MurrayCollegeofNotre Dame. Lloydminster Comprehensive HighSchool,and Holy RosaryHighSchoolinLloydminster, John PaulIICollegiateinNorth Battleford, renovations totheYorkton RegionalHighSchool, $24.3 millionisprovided in2021-22formajor Argyle andSt.PiuselementaryschoolsinRegina. construction onanewjoint-usefacilitytoreplace consolidating three existingschools;andbeginthe in Weyburn thatisscheduledtoopeninfall2021, complete constructiononanewelementaryschool Budget 2021-22alsoincludes$12.3millionto high schoolinLanigan. and theconsolidationofelementaryschool K-12 schooltoreplace BlaineLakeCompositeSchool; Ducharme ElementarySchoolinLaLoche;anew Carrot River;anewelementaryschooltoreplace of theelementaryschoolandhighin consolidate fourexistingschools;theconsolidation Regina; ajoint-usefacilityinMooseJawto St. MichaelandImperialelementaryschoolsin neighbourhood; ajoint-useconsolidationofSt. Peter, Approximately $2.1billionhas beeninvestedin schools and28majorrenovation projects. education capitalsince2008-09, including57new

healthy learningenvironment. current andfuture needs whileproviding asafeand works required toensure thatfacilitiesmeetboth This fundingsupports majorrenovation andrepair sector, including$29.4millioninthe2021-22Budget. infrastructure improvements inthepost-secondary The four-year planprovides over$102millionfor residence attheUniversityofRegina. University ofSaskatchewan,andanewstudent Building andtheInternationalVaccine Centre atthe Saskatchewan. ThisincludestheHealthSciences $685 millioninpost-secondaryinfrastructure across Since 2008-09,Governmenthasinvestednearly Advanced Education Budget alsoincludesanadditional $1.1millionto replacement oftheWeyburn GeneralHospital.The term care facilitiesinLaRongeandGrenfell, andthe urgent care centres inReginaandSaskatoon, long- Prince Albert Victoria Hospital’s redevelopment, support ongoingcapitalprojects, includingthe The 2021-22Budgetprovides $20millionto and equipmenttechnologyacquisitions. existing facilities,theconstructionofnew $162 millionformaintenanceandimprovement of system. In2021-22,theBudgetprovides atotalof infrastructure improvements tothehealthcare four-year plantargets over$974millionin people isGovernment’s topmostpriority, andthe Protecting thelivesandhealthofSaskatchewan Health Care Since 2008-09,Governmenthasinvestednearly across Saskatchewan. $685 millioninpost-secondary infrastructure

Budget 2021-22 29

environmental protection, and support for other and support protection, environmental the plan, Over the course of government programs. billion $1.1 approximately Government will invest and program high-quality to support in these areas including $324.2 million provided service delivery, in the 2021-22 Budget. initiative to rehabilitate Government’s of the As part channels, the 2021-22 Budget water dams and supply for includes $70.1 million. This funding provides including the projects, various infrastructure which Project Lake Diefenbaker Irrigation Expansion by economic growth Saskatchewan’s will promote diversifying into expanding its irrigation capacity, value- attracting more production, crop higher-value adding to long-term food and added processing, security. $16.5 million for The 2021-22 Budget provides upgrades to provincial and capital improvements in parks for parks. Planned capital improvements pavilions for Pike Lake, 2021-22 include new group Provincial Pound and Buffalo Blackstrap, Echo Valley Hills at Cypress Parks; a new serviced campground service centres campground Park; new Interprovincial for Saskatchewan Landing and The Battlefords Provincial Parks; interior and exterior refurbishing and exterior refurbishing Parks; interior Provincial Ronge; in Lac La Church at the historic Holy Trinity Since 2007-08, over and various other improvements. $160 million has been invested in park infrastructure over 300 new campsites, 33 new or providing as well as service centres, campground replaced to water and wastewater major improvements improvements, including electrical expansion to over improvements, developments 2,000 campsites, four campground boat launches, and trails. systems, roads, the people of Saskatchewan, investment protect To The a Government priority. in public safety remains $17.8 million to the Saskatchewan Budget provides Public Safety Agency for major upgrades and equipment replacement, including the modernization equipment replacement, aerial fleet. wildfire of the province’s

Government has invested over $1.9 billion in the construction of new health facilities, facility and equipment since 2008-09. renewals rehabilitation of provincial dams and water supply of provincial rehabilitation and correctional channels, upgrades to courts Government services the capital spending includes multiple long-term care facilities across the province. facilities across multiple long-term care Government Services facilities, parks and recreation facilities, IT projects, and equipment since 2008-09. This includes the and equipment since 2008-09. This includes Battleford, new Saskatchewan Hospital North Hospital in Saskatoon, Jim Pattison Children’s and Hospital in Moose Jaw, H. Wigmore F. Dr. have been During this time, capital improvements health facilities, including completed at numerous Youth the Humboldt Hospital, Prince Albert Lloydminster Hospital, Centre, Addictions Treatment for Mental Health. and the Dubé Centre scheduled replacement of medical linear accelerators scheduled replacement cancer centres. at provincial renewals, construction of new health facilities, facility Government has invested over $1.9 billion in the Government has invested over $1.9 billion in Watson, Estevan and Regina. in Watson, to focus on the Government will continue the capacity strengthen to further infrastructure to high-quality care of our system and provide The Budget includes Saskatchewan people. maintenance and major $81.2 million for ongoing health facilities. to existing renovations for the The 2021-22 Budget contains $59.8 million of medical equipment and and repair replacement the including IT projects, health care to support begin planning activities for long-term care facilities for long-term care begin planning activities preservation and maintenance of health care preservation 30 Budget 2021-22 Pierceland supplyexpansion. Southwest Saskatchewanexpansion andthe Rosetown toVanscoy gaslineexpansion,the Notable transmissioncapacityprojects include infrastructure; andexpandthetransmissionsystem. integrity, reliability, andregulatory complianceof SaskEnergy. Theseinvestmentswillensure the province’s naturalgasdistribution systemthrough The 2021-22Budgetinvests$276.8millioninthe power lines. hydroelectric station,andrebuilding transmission Moose Jaw, unitextensionsattheEBCampbell a new350MWnaturalgas-fired electricalplantat mandates. Plannedinvestmentsincludeconstructing maintain reliability andadvanceenvironmental electricity systemtomeetgrowing customerdemand, $937.6 millioninimprovements totheprovince’s Through SaskPower, the Governmentwillinvest Saskatchewan. arequality services availableforthepeopleof over $6billiontoensure safe,reliable andhigh- Over thenextfouryears,Governmentwillinvest infrastructure whilesupporting economicrecovery. in 2021-22tomaintainandenhanceutility Crown sectorwillinvestapproximately $1.6billion and integrityofaginginfrastructure. Saskatchewan’s utility infrastructure are plannedtoensure thesafety Substantial investmentsinSaskatchewan’s public Commercial Crowns holding 427people. units collectivelycontaining216cellscapableof taken intocustodysecurely. Itwillconsistof two modern facilitytoholdremand accusedpersons Correctional Centre. Theremand centre will offer a $52 millionforaremand expansionattheSaskatoon The 2021-22Budgetalsoincludesapproximately

with thetermofpayments. sustainable andmatchesthebenefitsofassets over $30billionininfrastructure by2030isfiscally that through adisciplined financingstrategytoensure Capital expenditures willcontinuetobefunded province’s long-termfiscalhealth. stimulate economicrecovery whilepreserving the investments tosupport agrowing province and The CapitalPlanbalancestheneedforinfrastructure Capital PlanFinancing Transport Strategy. and majorcentres through theRegionalEthernet and improving digitalcommunicationsbetweenrural gas-fired powerstationlocatednearSwiftCurrent, Gravelbourg watertreatment plant,anewnatural replacing theultrafiltrationmodulesat The projects completedduringthisperiodinclude sector inpublicutilityandinfrastructure services. approximately $20.4billionthrough theCrown Since 2008-09,Governmenthasinvested Saskatchewan program. fibre opticnetworks,andcompletionoftheWireless growth demand,upgradestobroadband facilitiesand that support qualitynetworksandmeetthewireless Capital investmentswillincludesustainmentprojects and communicationstechnologyinfrastructure. investing $323.2millionintheprovince’s information the bestatconnectingpeopletotheirworldby The 2021-22Budgetsupports SaskTel’s visiontobe cost-effective timetofinancecapital. excellent credit rating,continue tomakethisa Low interest rates,combinedwiththeProvince’s Saskatchewan’s Growth Plangoalofinvesting

SASKATCHEWAN PROVINCIAL BUDGET 21-22

TECHNICAL PAPERS 32 Budget 2021-22 2021 by3.4percentand5.9cent,respectively. (GDP) andnominalGDPare forecast togrow in Overall, Saskatchewan’s real gross domesticproduct momentum. consumer confidenceisexpectedtoregain and oilpricesrecover. Inaddition,businessand continue onapathofrecovery asglobaldemand In 2021,Saskatchewan’s economyisexpectedto been lessthaninitiallyforecast for2020. events ontheSaskatchewaneconomyappeartohave Most economicindicatorssuggesttheimpactofthese emergency andweakoilpricesin2020. unprecedented impactoftheCOVID-19health Saskatchewan faceschallengesasaresult ofthe INTRODUCTION THE SASKATCHEWAN ECONOMY GLOBAL REAL GDP GROWTH ASSUMPTIONS

Sources: BankofCanada (January2021),IHS(December 2020) Per Cent 10 -8 -6 -4 -2 0 2 4 6 8 Canada

U.S.

2020

Eurozone

2021

Japan 5.2 percent,andtheU.S.economyby3.5cent. economy by6.0percent,theJapanese elsewhere buttoalesserextent contract by7.1percent.Contractionsare expected economy wasimpactedthemostandisexpectedto Among otherdevelopedeconomies,theEurozone below itsinitialtarget rangeof6.0percentgrowth. experienced growth of1.7percent,whichwaswell the exceptionofChina.TheChineseeconomy In 2020,theglobaleconomywasinrecession with to thesuddencollapseinglobaldemand. into negativeterritoryforthefirsttimeinhistorydue business confidence.InApril2020,oilpricescrashed only limitedconsumeractivities,butalsoaffected The lockdownsandrestrictions oneconomiesnot significantly impactedbythespread ofCOVID-19. Global economicperformance in2020was GLOBAL ECONOMICOUTLOOK 2022 China Global – theCanadian

Budget 2021-22 33

2.1 3.0

1.72 1.38 2025 81.60

2.2 2.9

1.47 0.88 2024 82.30

2.2 2.5 1.30 0.50 2023 81.20

3.6 2.5 1.08 0.20 2022 80.00 in 2021 and by 3.6 per cent in 2022. increasing household consumption, strengthening of strengthening household consumption, increasing investment, and recovering and business residential an with in a quick rebound resulted exports Fourth- annualized rate of 40.6 per cent growth. pace of to a moderate returned growth quarter GDP declined real 9.6 per cent. Overall, Canada’s by 5.4 per cent in 2020. by 3.7 per cent GDP is expected to grow real Canada’s combined gradual reopening of the economy, combined gradual reopening CANADIAN ECONOMIC OUTLOOK CANADIAN ECONOMIC and negatively economy was significantly Canada’s and the global recession, impacted by the pandemic, was immune. weak oil prices and demand. No sector first and second 7.5 per cent and 38.5 per cent, in the the quarter, In the third of 2020, respectively. quarters Canada’s real GDP contracted by annualized rates of real Canada’s Expected continuity of both fiscal stimulus measures Expected continuity to result easing is forecast and favourable quantitative in 2022. 2021 and 2.5 per cent in real GDP growth for the U.S. of 3.1 per cent in for the GDP growth in real

3.7 3.1

0.81 0.17

2021

78.80

(5.4) (3.5) 0.77 0.45 2020 74.60 Actual

Can. Real GDP Growth (%) Can. Real GDP Canadian Dollar (US cents) Sources: Statistics Canada (March 2021), IHS (December 2021), Ministry of Finance (March 2021) U.S. Real GDP Growth (%) U.S. Real GDP 10-year Government of Canada Bond (%) Short-term Interest Rate (%) CANADIAN AND U.S. ECONOMIC ASSUMPTIONS AND U.S. ECONOMIC CANADIAN central banks’ accommodative monetary policy, and monetary policy, central banks’ accommodative out, and their subsequent roll vaccine availability 2.8 per cent in 2021 and by moderate, growing 1.9 per cent in 2022. by the The U.S. economy has been less impacted similar pandemic than Canada because, although in place, stimuli were fiscal and monetary strong containment and the U.S. utilized less restrictive public health measures. Supported by governments’ fiscal stimulus measures, by Supported is expected to be economic recovery Japan’s global economic recovery is expected by most is expected by global economic recovery in 2021. countries beginning and will affect and challenges remain Uncertainties medium in both the near and the pace of recovery by is expected to grow economy the Eurozone 4.4 per cent and 4.5 per cent. terms. 2022 show a quick rebound for 2021 and Forecasts of 8.4 per cent with growth economy, for China’s Over the same period, and 5.4 per cent, respectively. 34 Budget 2021-22 in 2022. average 78.8U.S.centsin2021 and80.0U.S.cents The valueoftheCanadiandollar isexpectedto dollar hascontinuedtorise. the third quarter of2020,thevalueCanadian (WTI) oilpricesandthestrong economicrebound in With theimprovement ofWest Texas Intermediate January to71.1U.S.centsinApril. prices. In2020,itweakenedfrom 76.4U.S.centsin pressure duetosloweconomicgrowth andweakoil The valueoftheCanadiandollarhasbeenunder 0.10 percentinDecember. 1.55 percentinearly2020toapproximately a totalof146basispoints,from approximately Comparatively, U.Sfederalfundratesdropped by in Februaryto0.25percentDecember. for atotalof150basispoints,from 1.75percent Canada cutitsovernightlendingratethree times pandemic andoilpricecrash.In2020,theBankof the unprecedented andcombinedimpactsofthe havebeeneasing interestReserve ratestocopewith Both theBankofCanadaandU.S.Federal CANADIAN AND U.S.INTERESTRATES Source: BankofCanada(March2021) Per Cent 0.0 0.5 1.0 1.5 2.0 2.5 2018 Jan- 2018 July Overnight Rate Overnight Canadian 2019 Jan- 2019 July 2020 Jan-

Funds Rate U.S. Federal 2020 July

of 9.6percent. Additionally, theprovincial averaged 8.4per cent,wellbelowthenational average For 2020,Saskatchewan’s unemploymentrate of Canada. rate andthesecond-lowestunemployment rateinall 2020, Saskatchewanhadthe highestemployment Despite anaverageof26,800joblossesreported in April 2020. level ofjoblosseshasgraduallyimproved since 70,400 inApril2020compared toApril2019.The Total employment inSaskatchewandeclinedby outperforming thoseinotherprovinces. May. Assuch,somesectorsofthe economyare gradual economicimprovements commencinginlate government financialsupport measures resulted in Re-Open Saskatchewanplancombinedwith Implementation ofthegovernment’s five-phased public healthrestrictions. down significantlyduringthefirstfewmonthsof Without exception,allkeyeconomicindicatorswere the globalpandemicandfallinoilprices. Saskatchewan’s economy hasbeenaffected byboth IN 2020 SASKATCHEWAN PERFORMANCE CANADIAN DOLLAR AND WTI PRICES Sources: BankofCanada(March2021), US Cents

75 80 85 Jan-2018 0 Ministry ofEnergyandResources(March2021) Dollar (LHS) Canadian Jan-2019 Jan-2020 (RHS) WTI Prices

Jan-2021

0 10 20 30 40 50 60 70 80

US$/Barrel Budget 2021-22 35

0.4 6.7 9.6 4.4 0.7 (1.8) (2.3) (5.2) (2.0) (2.3) (1.4) (1.0) 58.0 (11.4) (12.2) (28.2) (20.9) Change Canada Per Cent

9 9 5 7 1 9 7 1 1 1 7 1 3 5 10 10 Rank

2nd lowest

5.0 2.5 8.4 3.0 0.6 (0.0) (4.7) (1.0) 27.2 61.3 (12.9) (21.9) (15.5) (18.1) (14.0) (17.8) (15.1) Change Per Cent Saskatchewan

1.4 1.2 1.9 8.4 3.1 1.6 30.4 61.3 19.3 27.1 13.4 544.1 141.9 3,087 Level 38,719 1,178.8 1,092.5

For example, compared to the national average For example, compared housing in new the highest growth Saskatchewan had in highest growth the per cent increase), (24.2 starts the highest and per cent increase), wholesale trade (4.4 growth in international exports (2.2 per cent increase). (2.2 in international exports growth by 5.4 per cent, the weekly earnings grew Average in Canada. seventh-highest growth in manufacturing sales performance Saskatchewan’s significantly and Some economic indicators were overall, the negatively impacted by COVID-19, but and investment in building construction, however, and investment in building construction, the national average. weak and below remained those in other provinces. smaller than impacts were Sales at food services and drinking places declined in Canada. The by 21.3 per cent, the smallest decline was Canadian average decline for these sales 31.5 per cent.

NLNSNB

48.1 54.0

54.3

ON

57.5

PE 57.9

BC 57.9

CA 58.0

QC 58.1 MB 60.2 ABSK 60.7 61.3

0

Employment (000s) Non-Residential ($B) International Goods Exports ($B) Average Weekly Earnings ($) Weekly Average Population at Jan. 1 (000s) Source: Statistics Canada (March 2021) Building Permits ($B) Retail Sales ($B) Housing Starts (# of units) Unemployment Rate (%) Residental ($B) Employment Rate (%) Investment in Building Construction ($B) Wholesale Trade ($B) Wholesale Trade Manufacturing Sales ($B) Food Services and Drinking Places Sales ($M) New Motor Vehicle Sales (# of units) New Motor Vehicle Consumer Price Index (2002=100) 65 60 55 50 45 Per Cent Per Source: Statistics Canada (March 2021) well during 2020 and experienced year-to-date with the same when compared positive growth period in 2019. IN 2020 ECONOMIC INDICATORS SASKATCHEWAN employment rate averaged 61.3 per cent, well above employment rate averaged 61.3 per cent, the Canadian average of 58.0 per cent. 2020, some Since the onset of the pandemic in March have in fact performed economic indicators provincial EMPLOYMENT RATES IN 2020 EMPLOYMENT RATES 36 Budget 2021-22

the 2011-20period. 2001-10 periodto34.4million tonnesduring an average24.0milliontonnes duringthe in Saskatchewanincreased by43.3percentfrom On a10-yearaveragebasis,totalcrop production from 2019. at 39.1milliontonnes,anincrease of0.6percent crop onrecord. Total crop production isestimated In 2020,Saskatchewanrecognized itssecond-largest improvements incommoditymarkets. increase in consumer andbusinessconfidence, a pathofrecovery in2021supported bybothan Saskatchewan’s economy isexpectedtocontinue AND OUTLOOK COMMODITIES PERFORMANCE declined by22.9percentnationally. motor vehiclesalesat16.8percentwhilethese Saskatchewan hadthefourth-lowest declineinnew

(March to December 2020 versus March to December 2019) December to March versus 2020 December to (March ECONOMIC PERFORMANCE DURING THE PANDEMIC THE DURING PERFORMANCE ECONOMIC

Source: StatisticsCanada(March2021) Per Cent Change

-30

-20

-10

10

20

30

0

Housing Housing

Starts

24.2

Earnings Earnings

Average

Weekly Weekly

5.4

Whole-

Trade

sale sale

4.4

national national

Exports

Goods Goods

Inter- 2.2

Services & & Services

Drinking

Food Food -21.3

Vehicle

Motor Motor

Sales -16.8

Construction

Investment Investment in Building Building in second-highest levelat13.6 million tonnes. 2020, Saskatchewan’s potashproduction recorded the per Despite aweakeningofpotash prices,from $511.03 41.5 milliontonnesby2025. Total crop production isexpectedtorise SASKATCHEWAN CROP PRODUCTION at 39.01milliontonnes) (Second-highest productionin2020 Sources: StatisticsCanada(November2020), Millions of Tonnes -16.7

K 15 20 25 30 35 40 45 0 2

O Building Building

Ministry of Agriculture (January 2021) Permits

tonnein2019to$387.85per K -15.6 2001-10 average:

24.0

facturing facturing

Manu-

Sales -14.6

2011-20 average: Employ-

34.4

ment

-4.7

Retail Retail

Sales -1.8

2 O Forecast

tonnein 202320212019201720152013201120092007200520032001

202 5

Budget 2021-22 37

Number of Wells Drilled

4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

2024 WTI Oil Price (LHS) Forecast

2022 2020 2018 Oil Wells Oil Wells Drilled (RHS) 2016 2014 0

80 60 40 20

180 160 140 120 100 US$/Barrel US$/Barrel Source: Ministry of Energy and Resources (March 2021) WTI OIL PRICE AND OIL WELLS DRILLED AND OIL PRICE WTI OIL significantly from 1,880 wells in 2019 to 1,057 wells 1,880 wells in 2019 to significantly from to oil prices the expected improvement in 2020. With oil prices have significantly affected Historically, an average from when the WTI price dropped in 2008 to an average of of US$99.60 per barrel real in 2009, Saskatchewan’s US$61.80 per barrel GDP subsequently declined by 5.3 per cent. The WTI oil price is expected to average The WTI oil price is up in both 2021 and 2022, US$55.00 per barrel in 2020. US$39.40 per barrel from oil prices, drilling activity declined Impacted by weak the total number of wells period, over the forecast with a modest to improve, drilled is likewise forecast and up to a total of 3,000 to 1,250 in 2021 increase by 2025. For example, economic performance. Saskatchewan’s Since then, the WTI oil price gradually increased oil price gradually increased Since then, the WTI in December. per barrel to an average of US$47.10

Millions of K O Tonnes

2

18 16 14 12 10 8 6 4 2 0

2024 Potash Price (RHS)

tonnes by 2025. Forecast O 2022 2 K 2020 2018 tonne in 2021 and strong global strong tonne in 2021 and O 2 Potash (LHS) Production 2016

2014 0 800 600 400 200

1,000

2 C$/K O Tonne O C$/K demand for potash is expected to continue over the demand for potash forecast period. As such, total potash production is period. As such, total potash production forecast 15.2 million anticipated to reach The price of potash is expected to improve slightly is expected to improve The price of potash to $396.48 per K Uranium does not trade on an open market like other barrel an average high of US$57.50 per from dropped in January to an average of US$16.70 per barrel in April. mine, uranium production dropped significantly in dropped mine, uranium production is expected to return 2020. Uranium production resumed. to a nominal pace when operations are commodities; buyers and sellers negotiate contracts an oil price crash in April of 2020. The WTI oil price Due to the temporary shutdowns at the Cigar Lake Due to the temporary shutdowns at the published by independent market Prices are privately. flat relatively expected to remain consultants and are over the medium term. in in global demand for oil resulted The sudden drop Source: Ministry of Energy and Resources (February 2021) Source: Ministry of Energy and Resources (February at 13.6 million tonnes) SASKATCHEWAN POTASH PRICE POTASH SASKATCHEWAN AND PRODUCTION (Second-highest production in 2020 38 Budget 2021-22 5.3 percent,respectively, ineachofthoseyears. GDP displayedgrowth of4.7percentand US$76.70 perbarrel in2011,Saskatchewan’s real to US$72.90perbarrel in2010andto Conversely, whentheWTIpricerecovered, Sources: StatisticsCanada(November2020), REAL GDP AND WTIOIL PRICES US$/Barrel COMMODITY PRICE ASSUMPTIONS

100 120 Potash (C$/K Wheat (C$/tonne) Potash (US$/KCltonne) WTI Oil(US$/barrel) Well-head Oil(C$/barrel) Natural Gas(C$/GJ) 1 Canola (C$/tonne) Sources: MinistryofEnergyandResources(March2021), Agriculture (January2021)

40 60 80 0 Canadian dollarpriceperK The potashindustryquotespricesinUSdollarsper Ministry ofEnergyandResources(March2021) (RHS) Real GDP 2 O tonne)

2 O tonne. 1 1

Price (LHS) WTI Oil 468.7 224.2 176.5 387.9 2020 39.4 34.8 Forecast 2.3

– CALENDAR YEAR 2025202320212019201720152013201120092007 KCl tonne.Provincialroyaltycalculations,however, arebasedonthe 0 70 80 90 100

477.4 234.0 190.6 396.5

2021

55.0 50.0 Billions of 2012 Dollars 2012 of Billions 2.8

the forecast period. Continued economicrecovery isexpectedthroughout and 4.1percent,respectively, in2021and2022. Nominal GDPisforecast toincrease by5.9percent rise by3.4percentin2021and3.22022. Saskatchewan’s real GDPisexpectedtoimprove and increase inconsumerandbusinessconfidence, recovery, improving oilpricesanddemandan With therollout ofvaccinations,globaleconomic in 2020,respectively. expected todeclineby4.2percentand7.8 Saskatchewan’s real GDPandnominalare Impacted bythepandemicandweakoilprices, 470.4 232.1 193.4 396.2 2022 55.0 49.3 2.8

476.9 232.4 197.3 398.3 2023

56.0 49.6 2.8

479.7 235.2 202.4 403.1 2024 57.5 50.2 2.8

480.4 235.6 207.0 415.9 2025 59.0 52.2 2.9

Budget 2021-22 39

2.9 4.3 3.3 1.6 6.8 5.4 2025 Date Jan./21 Jan./21 Jan./21 Mar./21 Mar./21 Mar./21

Dec./20 Dec./20 Dec./20 Release

2.3 3.4 3.2 1.7 6.0 5.7 0.7 1.0 0.2 2024 (1.1) (1.0) (0.5) (0.8) (0.5) (0.5) (0.9) (2.8) Total Growth

2.5 3.2 3.3

1.6 6.1

6.0 2023 4.1 5.9 4.0 4.6 5.2 3.4 4.5 4.5 5.4 4.7 3.3 2021

3.2 4.1 3.3 1.5 7.9 6.4 2022 (5.2) (5.2) (5.0) (5.2) (4.2) (4.2) (5.0) (5.0) (5.2) (5.6) (6.1) 2020 the two-year period is similar. outlook ranked fifth GDP growth real Saskatchewan’s in both 2020 and 2021, amongst all provinces sector forecasts. to the private according assumptions of a 4.2 per cent contraction in 2020 assumptions of a 4.2 per cent contraction over in 2021, total growth and 3.4 per cent growth These forecasts range from a low of 3.3 per cent to range from These forecasts a high of 5.9 per cent. this budget's from differ While private sector forecasts

3.4 5.9 3.2 1.2 6.5

15.7 2021

0.6 8.4 (4.2) (7.8) (1.0) 2020 (26.8)

2020 actual As of March 12, 2021

Real GDP Nominal GDP CPI* Retail Sales* * Source: Ministry of Finance (March 2021) Employment Growth (000s)* Employment Growth (%)* Unemployment Rate

CIBC Scotiabank National Bank Laurentian Bank of Private Sector Forecasts Average 2021-22 Budget Forecast * Conference Board of Canada RBC BMO TD Bank IHS Global Insight SASKATCHEWAN FORECAST AT A A GLANCE FORECAST AT SASKATCHEWAN Unless Otherwise Noted) (Per Cent Change FOR SASKATCHEWAN* GROWTH FORECASTS GDP REAL SECTOR PRIVATE (Per Cent) FORECAST COMPARISON expect Saskatchewan’s All private sector forecasters economy to recover beginning in 2021. beginning economy to recover expect On average, private sector forecasters by 4.6 per cent GDP to grow real Saskatchewan’s 5.2 per cent in 2021, after their predicted contraction in 2020. 40 Budget 2021-22 5.1 percentin2021and4.22022. in 2022.NominalGDPisexpectedtoincrease by to grow by 3.4 percentin2021andby3.2 period. Overall,Saskatchewan’s real GDPisexpected momentum onapathtorecovery overtheforecast rising, Saskatchewan’s real GDPisexpectedtoregain improvement, andconsumerbusinessconfidence global economicrecovery, oilpriceanddemand With thecombinationofvaccineavailability, was originallyestimatedintheearlypart of2020. economy, however, was lessseverely impactedthan to COVID-19andweakoilprices.Saskatchewan’s experienced anexceptionallychallengingyeardue Saskatchewan, likeothersmall,openeconomies, CONCLUSION (Per CentChange) PRIVATE SECTOR FORECASTSOFREAL GDP GROWTHBY PROVINCE* New Brunswick Nova Scotia Prince EdwardIsland Québec Manitoba Ontario Saskatchewan * Canada Newfoundland andLabrador British Columbia Alberta

As ofMarch12,2021

2020 (3.7) (3.7) (5.4) (4.1) (5.7) (5.2) (4.3) (5.8) (7.1) (5.5) (5.2)

Rank

10 2 1 7 3 8 5 4 9 6

2021 4.0 4.0 4.9 4.3 4.9 4.6 4.2 3.9 4.9 4.8 5.0

Rank 10 8 2 6 2 5 7 9 4 1

2022 3.0 4.0 3.3 4.3 3.6 3.6 3.5 3.1 4.6 4.2 4.3

Rank 10 4 8 2 6 5 7 9 1 3

Budget 2021-22 41

(2,611)

14,478 17,089 Budget 2021-22

(1,865) 14,096 15,961 2020-21 Forecast

(319) 14,887 15,206 Actual 2019-20

(268) Actual 14,502 14,769 2018-19 one theme depending on the purpose of the activity. one theme depending on the purpose particularly with executive government ministries, particularly than more expense can be allocated across an entity’s and have the authority to self-sufficient GBEs are as their sell goods and services to external parties made to account for differences in entity year-ends made to account for differences of that do not align with the Government 31. of March year-end Saskatchewan’s into four major categories is classified GSO revenue cases, classified into 11 expense themes. In some incorporated Budgets for GBEs are principal activity. Business Enterprises” Government “Net Income from The revenue and expense budgets of GSOs (and and expense budgets of GSOs The revenue of partnership share proportionate Government’s consolidated after adjusting and expense) are revenue and eliminating in accounting policies for differences transactions. Adjustments are inter-organizational federal transfers resources, (taxes, non-renewable while GSO expense is and other own sources), category called as a single amount in a fifth revenue using the modified-equity method, which includes proportionate the Government of Saskatchewan’s share of net earnings or losses. share The 2021-22 Budget estimates a deficit of $2.6 billion.

2021-22 FINANCIAL OUTLOOK FINANCIAL 2021-22

Revenue (millions of dollars) Expense Deficit Totals may not add due to rounding. Totals FINANCIAL OVERVIEW FINANCIAL Examples of GSOs include Government of financial activity for all organizations within the all organizations financial activity for government partnerships. is based on The inclusion of these organizations Government grants to sustain their operations. Saskatchewan ministries, as well as entities such of Boards as the Saskatchewan Health Authority, Security Agency. and the Water The Saskatchewan Provincial Budget includes the Budget includes Provincial The Saskatchewan OVERVIEW of Saskatchewan, of the Government control (GSOs), including Government Service Organizations and Government Business Enterprises (GBEs) the Public Sector Accounting established by standards Canadian governments, and (PSAB) for senior Board in the the method of consolidating these entities described in budget is consistent with the policies the Saskatchewan Public Accounts. in the budget, with the exception All organizations GSOs or – in situations defined as of GBEs, are into a contractual entered Government has where and share parties more with one or relationship risks and benefits – a government partnership. public services and receive GSOs typically provide Education, the Saskatchewan Housing Corporation 42 Budget 2021-22 TOTAL REVENUE–2018-19TO 2021-22 across allcategories. $830 million,or6.1percent,reflecting increases Relative tothe2020-21Budget,revenue isup income from GBEs. offset byadecrease infederaltransfersandlowernet revenue andotherown-source revenue, partially due tohighertaxrevenue, non-renewable resources from the2020-21forecast. Theincrease islargely 2021-22, anincrease of$383million(2.7percent) Total revenue isforecast tobe$14.5billionin of thebudget. provincial feesandcharges announcedinadvance presented inthebudget,aswellchangesto includes alltaxandotherrevenue measures The revenue outlookincludedinthe2021-22Budget REVENUE 2021-22 REVENUERECONCILIATION Total Revenue Transfers fromtheFederal Government (millions ofdollars) Taxation Total Revenue Transfers fromtheFederalGovernment Non-Renewable Resources (millions ofdollars) Other Own-SourceRevenue Taxation Other Own-SourceRevenue Net IncomefromGBEs Non-Renewable Resources Net IncomefromGBEs

14,501.6 2018-19 2,128.3 1,735.1 7,116.7 2,510.3 1,011.2 Actual

2020-21 forecast. Theincrease reflects aone-time at $755million,anincrease of$336millionfrom the Corporation IncomeTax (CIT)revenue isbudgeted 2020-21 forecast. an increase of$532million,or7.9percent,from the and accountsfor50percentoftotalrevenue. Thisis Tax revenue isbudgeted at$7.2billionin2021-22 Tax Revenue the oilpricecollapse. prior totheonsetofCOVID-19pandemicand lower thanwhatwasprojected inthe2019-20Budget year’s revenue budgetof$14.5billionis$1.0 Tax Credit andsmallbusiness taxratereduction, this the forgone taxrevenue duetotheHomeRenovation revenue outlookfor2021-22,afteraccounting Despite theyear-over-year improvement inthe Forecast 14,095.7 2020-21 1,096.2 3,219.3 6,706.2 1,969.1 1,104.9 14,887.1 2019-20 2,589.8 2,138.4 7,553.3 1,750.3 Actual 855.3

14,478.3 2021-22 13,648.7 Budget 2,908.5 1,328.5 7,238.0 2,104.1 2020-21 Budget 2,786.6 1,933.1 7,202.8 899.2 997.4 728.8

Forecast 14,095.7 2020-21 Dollars 3,219.3 1,969.1 1,096.2 6,706.2 1,104.9 (310.8) (205.7) 382.6 232.3 531.8 135.0 Change

14,478.3 Per Cent 2021-22 Budget 2,908.5 2,104.1 1,328.5 7,238.0 899.2

(18.6) 21.2 (9.7) 2.7 7.9 6.9

Budget 2021-22

43

7.9

4.9

0.0

8.8

1.5

7.6

(1.8)

80.3

Cent Per

0.1

11.8

21.2

Change from Change

33.9

(44.2)

531.8

172.9

336.1

2020-21 Forecast 2020-21

Dollars

454.1

201.8

784.8

477.9

754.6

Budget

7,238.0

2,144.0

2,420.8

2021-22

Potash: 3%

Other Non-Renewable Other Non-Renewable 3% Resources:

432.9

201.7

773.0

444.0 418.5

Oil and Natural Gas: 3% Oil and Natural Gas:

6,706.2

1,971.1

2,465.0 2020-21

Other Taxes: 13% Other Taxes: Forecast

Other Own Sources: 15% Other Own Sources:

442.2

206.8

774.0

507.9 787.5

negative adjustment as a result of anticipated negative adjustment as a result with the weakness in 2020 assessments, combined full-year impact of the Saskatchewan Home by anticipated offset partially Credit, Renovation Tax growth in the 2021 and 2022 tax base. in the 2021 and growth Provincial Sales Tax (PST) revenue is budgeted at (PST) revenue Sales Tax Provincial is consistent with the increase The 2020-21 forecast. $2.1 billion, an increase of $173 million from the of $173 million from $2.1 billion, an increase in the Saskatchewan expected post-COVID recovery

Actual

7,553.3

2,205.8

2,629.1 2019-20 Corporation Income Tax: 5% Tax: Corporation Income

Net Income from GovernmentNet Income from Business Enterprises: 6%

411.1

236.4

763.3

555.6

585.5

Actual

7,116.7

2,224.8

2,340.0 2018-19 Non-Renewable Resources: 9% Non-Renewable Resources: Provincial

Sales Tax: 15% Sales Tax:

Tax: 17% Tax:

Taxes: 50% Taxes:

Personal Income 2018-19 TO 2021-22 – 2018-19 TO

Federal Transfers: 20% Federal Transfers:

small business income tax rate reduction small business income tax rate reduction

Total

Tobacco Tax Tobacco Other Taxes Other

Provincial Sales Tax Sales Provincial

Property Tax Property

Individual Income Tax Income Individual

Fuel Tax Fuel

Corporation Income Tax Income Corporation (millions of dollars) of (millions

forecast, primarily due to an expected prior-year primarily due to an expected prior-year forecast, TAX REVENUE TAX temporary to 0 per cent. is budgeted at revenue Individual Income Tax 2020-21 the from $2.4 billion, a $44 million decrease negative adjustment recorded in 2020-21 for prior- negative adjustment recorded is forecast year assessments. In addition, CIT revenue to increase this year as a result of a higher federal a result this year as to increase the full-year impact of the by offset base, partially forecast of the 2021 and 2022 national corporate tax of the 2021 and forecast COMPOSITION OF 2021-22 REVENUE COMPOSITION OF 44 Budget 2021-22 WTI OIL PRICES AND THECANADIANDOLLAR NON-RENEWABLE RESOURCEREVENUE and LiquorConsumptionTax, anda$12million normal collectionlevelsofCorporationCapitalTax in othertaxes,mainlycomprisedofareturn to rebound ineconomicactivity, a$21millionincrease increase inFuelTax revenue asaresult ofthe a combined$67million,including$34million All remaining taxesare budgetedtoincrease by certain GSOsinthesummarybudget. PST paidoncapitalpurchases byministriesand of anewaccountingtreatment thateliminatesthe PST revenue compared tolastyear’s budgetasaresult 2021-22 Budgetincludesa$52millionreduction in spending andbusinessinvestment.However, the economy, includinggrowth inpopulation,household

(millions of dollars) Crown Land Sales Oil and Natural Gas Potash Resource Surcharge

Other Total

US$/Barrel 100 125 25 50 75 Mar-13 0

Mar-14

Mar-15 T i rcs(etai) CanadianDollar(rightaxis) WTI OilPrices(left axis)

Mar-16

2018-19

1,735.1

Actual

681.6 536.0 393.8

– 2018-19TO 2021-22

58.1

65.6

Mar-17

2019-20

1,750.3

Actual due toanincrease inWest Texas Intermediate(WTI) from the2020-21forecast. Theincrease isprimarily $505 millionin2021-22,anincrease of$143million Oil andnaturalgasroyalties are budgetedat increase from the2020-21 forecast. 2021-22. Thisisa$232million,or21.2percent, $1.3 billion,or9percentoftotalrevenue, in Non-renewable resource revenue isbudgetedat Non-Renewable ResourceRevenue over-year inflation. to EducationProperty Tax millratesinlinewithyear- increase inProperty Tax revenue, reflecting changes

667.8 554.4 413.3

17.1

97.6 Mar-18

Forecast

2020-21

1,096.2

362.3 404.5 265.8 Mar-19

56.9

6.7

2021-22

1,328.5

Budget

505.1 431.8 302.6

79.8 Mar-20

9.2

Dollars

2020-21 Forecast

142.8

232.3

27.3 Change from 36.8

22.9

2.5 Mar-21

0 25 50 75 100 125

Per Cent

37.3 39.4 US Cents US 13.8

40.2 21.2

6.7

Budget 2021-22 45

191 396 14.3 19.7 160.0 79.12 49.31 54.33 Budget 2021-22

180 390 14.0 18.1 154.0 75.70 39.05 42.27 2020-21 Forecast

223 490 12.7 20.9 178.9 75.19 52.54 54.80 Actual 2019-20

215 457 13.4 31.8 178.6 76.23 54.58 62.87 Actual

2018-19 The result of these factors is a 2021-22 well-head of these factors The result dollars, of $49.31 in Canadian oil price forecast, the 2020-21 average well-head up from per barrel, The value of the Canadian dollar is projected to The value of the Canadian dollar is projected an from average 79.1 U.S. cents in 2021-22, up As the price average of 75.7 U.S. cents in 2020-21. generally of Saskatchewan oil at the well-head is to lower States, a higher exchange rate translates equal. prices in Canadian dollars, all else being price of $39.05. at 160.0 million is forecast oil production Finally, the 2020-21 forecast in 2021-22, up from barrels as demand continues to of 154.0 million barrels WTI oil prices including increasing sector, resource and higher average potash prices. is budgeted at $432 million in Potash revenue the 2020-21 forecast. 2021-22, up $27 million from in both average The outlook incorporates increases price and sales volume forecasts. determined based on prevailing prices in the United determined based on prevailing increase. is forecast Surcharge the Resource Revenue from the 2020-21 forecast, $37 million from to increase in the continued recovery primarily reflecting

is

2 – 2

O tonne)

2 a proxy for the a proxy 2 –

1

O tonnes) 2 The average price per barrel of Saskatchewan light, medium and heavy oil. The average price per barrel of Saskatchewan light, forecasts. Ministry of Finance calculations derived from calendar-year

Potash Sales (million K 1 2 Oil Production (million barrels) Oil Production (million Canadian Dollar (US cents) Potash Price (mine netback, C$/K Potash Price (mine WTI Oil Price (US$/barrel) Potash Price (mine netback, US$/KCl tonne) Potash Price (mine Light-Heavy Differential (% of WTI) Light-Heavy Differential Well-head Oil Price (C$/barrel) Well-head WTI prices) in 2020-21 to 19.7 per cent in 2021-22. to recover from COVID-19 and its corresponding from to recover decline in demand. benchmark for an important WTI oil prices are However, revenue. the oil market and provincial in Saskatchewan is the majority of oil produced The light-heavy oil price differential of share 18.1 per cent (as a from expected to increase reflects current market optimism as the world starts current reflects sour than WTI oil and requires heavier and more years. price discount for Saskatchewan oil in recent in Saskatchewan price discount on oil produced forecasts. This is a US$12.06 per barrel increase from increase per barrel This is a US$12.06 forecasts. of US$42.27 and the 2020-21 average price forecast As products. to become refined processing further Saskatchewan oil typically trades at a a result, in production discount to WTI oil. Increasing Dakota, as well as Canada and North Western capacity constraints, pipeline and transportation have also contributed to a general widening of the oil prices and a forecast increase in production, increase oil prices and a forecast exchange rate forecast by a higher offset partially and a wider light-heavy oil price differential. to average US$54.33 forecast WTI oil prices are consistent with private sector in 2021-22, per barrel FISCAL YEAR ASSUMPTIONS – FISCAL FORECAST RESOURCE NON-RENEWABLE 46 Budget 2021-22 NET INCOMEFROMGOVERNMENTBUSINESSENTERPRISES 2021-22, from 14.0millionK forecast incorporatesasmallincrease insales up from US$180(C$390)in2020-21.Thepotash US$191 perKCltonne(C$396 In 2021-22,averagerealized pricesare forecast at the fiscalplan,assumptionsusedtodevelop revenue thisyear. Inanattempttominimizerisk rate volatilityhavethepotentialtoimpactresource decisions, transportation disruptionsandexchange The ongoingCOVID-19pandemic,alongwithOPEC revenue. performance, particularly non-renewable resource yet theyheavilyinfluenceSaskatchewan’s fiscal dollar. Thesefactorsare beyondgovernment’s control, commodity pricesandthevalueofCanadian Canadian, U.S.andglobaleconomicgrowth, 2021-22 Budgetrely onasetofassumptionsregarding The economicandfiscalforecasts inthe mine. expected resumption ofproduction attheCigarLake mainly duetohigheruraniumrevenue, reflecting the other minerals)isforecast toincrease by$25million, renewable resources (includinguranium,coal and Revenue from Crown landsalesandallothernon- to 14.3millionK

(millions of dollars) Saskatchewan Auto Fund Saskatchewan Auto Saskatchewan Gaming Corporation Saskatchewan Government Insurance Saskatchewan Liquor and Gaming Authority SaskPower SaskTel Workers’ Compensation Board SaskEnergy

Other Total

2 O tonnes.

2 O tonnesin2020-21

K 2

O tonne),

2018-19

1,011.2

Actual

(153.6)

485.1

231.2 123.1 165.7

77.5

22.5 48.0

11.7

2019-20

Actual • $206 milliondecrease from thecurrent 2020-21 for 6percentofbudgetedrevenue. Thisisa is forecast at$899millionin2021-22andaccounts Government BusinessEnterprise(GBE)netincome Business Enterprises Net IncomefromGovernment • • For 2021-22,thefollowingsensitivitiesare estimated: throughout theyear. will alwaysbesubjecttorisk.Thisriskisquantified factors, thenon-renewable resource revenue forecast because ofthevolatilenature ofthesekeyexternal incorporate anumberofprivatesectorforecasts. But non-renewable resource forecast are prudentand

470.3

204.8

855.4

115.4

(46.7)

(12.3)

20.1 49.9

43.5

10.4 change innon-renewable resource revenue. exchange rateresults inanestimated$20million a 1U.S.centchangeinthefiscal-yearaverage in potashroyalties; and, price results inanestimated$43millionchange change inthefiscal-yearaveragerealized potash a US$10perKCltonne(C$21 $14 millionchangeinoilroyalties; average WTIoilpriceresults inanestimated a US$1perbarrel changeinthefiscal-year

Forecast

2020-21

1,104.9

213.0

135.8 326.6

136.4 126.0

111.1

58.9

(7.1) – 2018-19TO 2021-22

4.2

2021-22

Budget

192.1

423.4

100.0

899.2

40.0

16.7

49.7

67.1

11.5

(1.3)

Dollars

(205.7)

2020-21 Forecast

(119.7)

(112.4)

(20.9)

(95.8)

(26.0)

18.6 Change from

96.8

62.9

(9.2)

K

Per Cent

2

1,497.6 O

(262.0)

(101.2)

(70.5)

(87.8) (15.6) (20.6)

(18.6) tonne)

29.6

(9.8)

Budget 2021-22

47

6.9

3.4

(4.7)

(0.5)

37.4

(26.1)

Cent Per

(3.6)

(1.5)

Change from Change

38.2

(31.3)

135.0

133.2

2020-21 Forecast 2020-21

Dollars

73.2

88.4

489.8

282.7

Budget

2,104.1

1,170.0

2021-22

76.8

119.7

356.6

284.2

1,969.1

1,131.8

2020-21

Forecast

77.5

118.6

462.8 279.3

earnings, as well as minor decreases in transfers from earnings, as well as minor decreases other governments ($4 million) and insurance ($2 million). revenue in the 2021-22 Budget revenue In total, own-source a level slightly less than its to is expected to return 2018-19 to 2019-20 average. 2020-21. from This is a $311 million decrease by $34 million and $12 million, will increase Transfer with the in 2021-22 in accordance respectively, legislated funding formula. in 2021-22 and accounts for 15 per cent of total in 2021-22 and accounts cent, This is a $135 million, or 6.9 per revenue. an anticipated reflects 2020-21 and from increase levels. These gains are to pre-pandemic to return income mainly due to lower sinking funding from the Federal Government Transfers at $2.9 billion in budgeted Federal transfers are total revenue. 2021-22 and account for 20 per cent of and Canada Social The Canada Health Transfer Other own-source revenue is budgeted at $2.1 billion revenue Other own-source the to normal economic conditions following return pandemic. in includes increases The 2021-22 Budget and of $133 million fees revenue miscellaneous and budgeted as both items are $38 million, respectively, million decline in investment by a $31 offset partially

Actual

2,138.4

1,200.2

2019-20

76.4

113.9

455.8 290.3

Actual

2,128.3

1,191.8 2018-19

Total

Miscellaneous

Transfers from Other Governments Other from Transfers

Investment Income Investment

Insurance

Fees (millions of dollars) of (millions 2018-19 TO 2021-22 OTHER OWN-SOURCE REVENUE – 2018-19 TO spending not funded by government grants. Other Own-Source Revenue includes fees for services revenue Other own-source the sale of goods and from and licenses, proceeds insurance entities and other miscellaneous sources generate Most government organizations of revenue. to finance additional in order revenue own-source services, investment income, fees collected by forecast, largely reflecting a budgeted return to a budgeted return reflecting largely forecast, normal levels of investment returns at Saskatchewan returns normal levels of investment Compensation (SGI), Workers’ Government Insurance Corporation. Board and the Auto Fund, following large gains in and the Auto Fund, following large Board by to be received revenue federal and provincial is for which there SaskPower for capital projects, expense in the Economic Development an offsetting SaskBuilds theme as the funding will flow through 2020-21. In addition, higher operating costs and 2020-21. In addition, net income to reduce projected are depreciation at SaskPower in 2021-22. by higher net offset partially These declines are income at Saskatchewan Liquor and Gaming Corporation Authority and Saskatchewan Gaming of the under the assumption of a re-opening to recognize a $64.4 million consolidation adjustment entertainment sector and an improvement in overall sector and an improvement entertainment economic conditions in 2021. also includes GBE net income in the 2021-22 Budget 48 Budget 2021-22 COMPOSITION OF2021-22EXPENSE under theprogram. Closure Program, consistent withexpectedactivity increase infederalfundingfortheAcceleratedSite These decreases are partially offset bya$100million • • • • 2020-21 thatare notbudgetedtorepeat, including: mainly duetoone-timefederalcontributionsin $357 millioncompared tothe2020-21forecast, Other federaltransfersare budgetedtodecline FEDERAL TRANSFERS –2018-19TO 2021-22

(millions of dollars) Canada Health Transfer

Canada Social Transfer Other Total

Stabilization Program. 2016-17 claimunderthefederalFiscal $19 millionforthefinalizationofSaskatchewan’s federal EssentialWorkers Support Fund;and, $53 millionforSaskatchewan’s share ofthe federal SafeReturntoClassFund; $75 millionforSaskatchewan’s share ofthe federal SafeRestart Agreement; $338 millionforSaskatchewan’s share ofthe

Health: 38%

2018-19

1,203.3

2,510.3

Actual

441.6 865.3

Other: 17%

Education: 22%

2019-20

1,262.7

2,589.8

Actual Budget, roughly similartolastyear. account foralmost70percentofthe2021-22 andAssistance Health, EducationandSocialServices 2020-21 Budget. an increase of$1.0billion,or6.3percent,from the Total expenseisbudgetedat$17.1billionin2021-22, Saskatchewan, includingtheGRF, are included. within thecontrol oftheGovernment of allGSOs(andproportionate share ofpartnerships) the SaskatchewanPublicAccounts.Theexpenses 11 themes,consistentwiththepresentation in Expense inthe2021-22Budgetisclassifiedinto EXPENSE

456.2 870.9 Assistance: 9% Social Servicesand Financing Charges: 4% and Property: 5% Protection ofPersons

Agriculture: 5%

Forecast

2020-21

1,296.5

1,457.6

3,219.3

465.2

2021-22

1,330.4

1,100.7

2,908.5

Budget

477.4

Dollars

(356.9)

(310.8)

2020-21 Forecast

33.9 12.2 Change from

Per Cent

(24.5)

(9.7)

2.6 2.6

Pension expense in the 2021-22 Budget is Health expense is up $359 million (5.8 per cent) $433 million higher than last year’s budget. The compared to the 2020-21 Budget, mostly reflecting: increase is primarily due to a $415 million • $123 million increase for compensation across deterioration in the pension accrual adjustment to the sector, mainly for settled bargaining account for pensions on an accrual basis. The agreements and physician contracts; deterioration reflects the fall-off of net actuarial gains • $90 million of new, one-time funding for the experienced in 2020-21 and changes in actuarial health system’s response to COVID-19; assumptions, including a lower discount rate to value the Province’s closed defined benefit pension plans. • $81 million increase for general operating costs and high-priority initiatives across the health The change in the pension accrual adjustment sector, including investments in mental health and addictions, diagnostic imaging wait times, accounts for 40 per cent of the overall expense emergency medical services, drug costs and increase in this year’s budget. information security;

Health is budgeted at $6.5 billion, or 38.2 per cent • $47 million increase as a result of the of total expense. consolidation of clinical funding for the College of Medicine from the Education theme; and, The most significant components of the Health theme • $18 million increase for 2020 platform are the Ministry of Health, the Saskatchewan Health commitments, including lowering the cost of Authority, eHealth, the Saskatchewan Cancer Agency seniors’ ambulance fees, adding 300 continuing and 3SHealth. care aides for long-term and home care and expanding supports for people with diabetes.

2021-22 EXPENSE RECONCILIATION

2020-21 2021-22 Change (millions of dollars) Budget Budget Dollars Per Cent Agriculture 798.8 879.3 80.5 10.1 Community Development 762.8 690.4 (72.4) (9.5) Economic Development 389.8 527.0 137.2 35.2 Education 3,361.9 3,753.2 391.3 11.6 Environment and Natural Resources 362.4 414.9 52.5 14.5 Financing Charges 718.2 755.0 36.8 5.1 General Government1 421.9 524.6 102.7 24.3 Health 6,176.3 6,535.3 359.0 5.8 Protection of Persons and Property 806.5 845.1 38.6 4.8 Social Services and Assistance 1,490.3 1,556.7 66.4 4.5 Transportation 585.8 607.7 21.9 3.7 Health and Public Safety Contingency 200.0 – (200.0) (100.0)

Total Expense 16,074.7 17,089.2 1,014.5 6.3 Budget 2021-22

1 General Government expense was previously named Other.

49 50 Budget 2021-22 for theCollege ofMedicinetotheHealththeme. decrease reflecting theconsolidationofclinicalfunding Partially offsetting theseincreases isa$47million for theSaskatchewanAdvantage Scholarship. 2021-22 Budgetalsoincludesa$4millionincrease and stimulusmaintenancefunding.The of Educationexpense,mostlyduetosalaryincreases In addition,there isa$50millionincrease inBoards • • • COVID-19 response funding,including: The 2021-22Budgetalsoincludes$78millionof to valuepensionliabilities. 2020-21 andadecrease inthediscountrateused amortization ofprior-year netactuarialgainsin largely asaresult ofthecompletion increase inpensionexpense,aspreviously noted, The majorityoftheincrease isduetoa$320million from lastyear’s budget. Education expenseisup$391million(11.6percent) Commission. Saskatchewan Apprenticeship andTrade Certification the SaskatchewanStudentAidFundand Saskatchewan Polytechnic,RegionalColleges, Training, aswelltheBoards ofEducation, Education, andImmigrationCareer theme are portions oftheMinistriesAdvanced The mostsignificantcomponentsoftheEducation 22.0 percentoftotalexpense. Education isbudgetedatnearly$3.8billion,or make preparations forfall2021. $21 milliontosupport schooldivisions asthey and, supports forthosedisadvantaged by COVID-19; $27 millionforcareer trainingandemployment institutions; multi-year fundingplanforpost-secondary $60 millionCOVID-19response packageand $30 millioninnewfundingaspart ofa

Protection of PersonsandProperty • • • • • The increase isprimarilydueto: $66 million(4.5percent)from the2020-21Budget. andAssistance expenseisup Social Services Saskatchewan LegalAidCommission. Saskatchewan HousingCorporationandthe expense alsoincludesspendingthrough the andAssistance Attorney General.SocialServices Ministries ofGovernmentRelationsandJustice andportionsthe MinistryofSocialServices The mostsignificantcomponentsofthisthemeare $1.6 billion,or9.1percentoftotalexpense. andAssistance Social Services Saskatchewan are alsoincluded. and theFinancialConsumer Affairs Authorityof Safety Agency, Victim’s Fund, theSask911Account and AttorneyGeneral.TheSaskatchewan Public the MinistriesofGovernment RelationsandJustice vote,aswellportionsIntegrated JusticeServices of Safety, Labour RelationsandWorkplace Safety, the the MinistriesofCorrections, PolicingandPublic The mostsignificantcomponentsofthisthemeare $845 million,or4.9percentoftotalexpense. organizations. $7 millionincrease tocommunity-based utilization; and, $9 millionnetincrease forIncomeAssistance strategy andincreased housingoperationscosts; $13 millionincrease forthenationalhousing hearing persons; and improving fordeafandhard services of Disorder Program toinclude children under12 individualized fundingforAutismSpectrum intellectual disabilities,expandingtheexisting $15 millionincrease forsupports toclientswith from abuseandneglect; program’s core mandateofkeepingchildren safe utilizationpressuresServices tosupport the $19 millionincrease forChildandFamily isbudgetedatnearly

isbudgetedat

Budget 2021-22 51

is budgeted at $527 million, Recovery Rebate provided to SaskPower Recovery Rebate provided customers; $175 million for the Saskatchewan Economic Fund, as well as a $4 million increase for the Active for million increase Fund, as well as a $4 Families Benefit. million, or is budgeted at $608 Transportation expense. 3.6 per cent of total theme The most significant components of this of the and a portion the Ministry of Highways are Fund. Partnerships Transportation is up $22 million (3.7 per cent) Transportation due to a $15 million budget, largely last year’s from expense for completed in amortization increase for the as increases as well highway projects, Fund and the Strategic Partnership Transportation air improvement, for road Program Partnership services, and other projects. Economic Development or 3.1 per cent of total expense. The most significant components of Economic Program and $5 million for the New Building Canada and $5 million for the New Building Program well as the Ministry of Government Relations, as and of Energy the Ministries Development are Development, as and Export and Trade Resources Infrastructure Program, $7 million for the Gas Tax $7 Program, Infrastructure of the Ministries of Environment, well as portions Economic Enhancement Program, partially offset by offset partially Program, Economic Enhancement in Canada of $68 million for the Investing increases Finance and Training, Immigration and Career The theme also includes and Sport. Parks, Culture Innovation Saskatchewan, Saskatchewan of the Corporation, a portion Opportunities Council, Tourism Saskatchewan Research Saskatchewan and SaskBuilds Corporation. Economic Development is up $137 million reflecting: (35.2 per cent), largely •

is budgeted at Protection of Persons and Property is up $39 million of Persons and Property Protection (4.8 per cent), primarily reflecting increases across increases reflecting (4.8 per cent), primarily including COVID-19 response the justice system, measures in the court services, in the court policing programs, measures salary increases and custody services. salary increases million, or is budgeted at $879 Agriculture expense. 5.1 per cent of total theme are The most significant components of this Saskatchewan Crop the Ministry of Agriculture, Agricultural Insurance Corporation, Saskatchewan insurance crop primarily due to $73 million in higher liability and a higher insured from expense resulting payments, as well as increases AgriStability increased Development for AgriInvest and Agricultural Water projects. million, or budgeted at $755 are Financing Charges of increase 4.4 per cent of total expense. This is an budget, last year’s $37 million (5.1 per cent) from Stabilization Fund and Prairie Agricultural Machinery Stabilization Fund and Prairie Agricultural Institute. (10.1 per cent), is up $81 million Agriculture in debt-servicing costs an increase reflecting largely in Saskatchewan Capital Plan of growth as a result and operating debt. Community Development $690 million, or 4.0 per cent of total expense. The most significant components of Community of the Ministries of portions Development are Government Relations, Education and Parks, Culture Municipal Trust as well as the Northern and Sport, Account and the Saskatchewan Lotteries Trust Fund Account and the Saskatchewan Lotteries Trust for Sport, Culture and Recreation. Culture for Sport, Community Development is down $72 million budget, primarily due last year’s (9.5 per cent) from for the Municipal to a $150 million decrease 52 Budget 2021-22 last year'sbudget. $200 milliondecrease inexpense whencompared to and PublicSafetyContingency, resulting ina Finally, thisyear’s budgetdoesnotincludeaHealth election. fall-off offundingrelated tothe2020provincial reduction for theChiefElectoralOfficer duetothe as previously noted,partially offset bya$20million reflecting a $112millionincrease inpensionexpense, (24.3 percent)from the2020-21Budget,primarily expense. Thisisanincrease of$103million budgeted at$525million,or3.1percentoftotal General Government reclamation ofinactiveoilandgaswellsfacilities. for theAcceleratedSiteClosure Program forthe $50 millionincrease infederalflow-through funding $53 million(14.5percent),primarilyreflecting a Environment andNaturalResources expenseisup the SaskatchewanResearch Council. Fund, theWater SecurityAgencyandaportion of well, thethemeincludesCommercial Revolving of Environment andParks,Culture andSport. As This themeiscomprisedofportions oftheMinistries $415 million,or2.4percentoftotalexpense. Environment andNaturalResources • partially offset by, • • • programs inthe2020-21Budget. one-time emergency COVID-19support $121 milliondecrease duetothefall-off ofthe Tourism SectorSupport Program; $5 millionincrease fortheSaskatchewan a Centre forPandemicResearch; and, $15 millionincrease forVIDOtoconstruct enablement; system anddistributedenergy resource rural communities,abatteryenergy storage multiple projects, includinginfrastructure in (offset byhigherGBEnetincome)toinvestin $64 millionincrease provided toSaskPower

(formerlyOther)expenseis

isbudgetedat

return tobalance duetoitslowdebtburden. Saskatchewan iswellpositionedtowithstandalonger outlook sincethe2020-21FirstQuarter Report, in 2024-25.Whilethisisadeteriorationthefiscal planning horizon,includingadeficitof$770million Beyond 2021-22,deficitsare nowforecast across the recovery. health care system,andtosetthestageforeconomic required tosupport theprovincial economyand another yearofCOVID-related spendingwillbe a result ofadelayedeconomicrecovery. Inaddition, shortfall compared totheprevious outlook,largely as In thenearterm,2021-22Budgetfacesarevenue path forareturn tofiscalbalance. but theongoingpandemichasaltered theprevious Economic growth isforecast for2021andbeyond, full recovery willtakelongerthanoriginallyassumed. that theviruswillsoonbecontained,itisclear the beginningofmassvaccinationefforts offer hope While theapproval ofvaccinesinrecent monthsand in placeandCOVID-19variantsspread. challenges remain aspublichealthmeasures remain unprecedented shocklastyear. Significanteconomic economy andthelabourmarketexperiencedan initially forecast. However, severalsectorsofthe from COVID-19appearstohavebeenlessthan The impacttotheSaskatchewaneconomyin2020 MEDIUM-TERM OUTLOOK economy thatfurther delayrecovery. there are nonegativestructuralchangestothe successful inendingthepandemicthisyearandthat public healthmeasures andvaccinationefforts are assumptions. Inparticular, theoutlookassumesthat the provincial economicforecast anditsunderlying The medium-termfiscaloutlookisconsistentwith

Budget 2021-22 53

406

204

15.2

19.0

82.13

166.7

50.69

57.88

2024-25 Outlook

400

199

15.2

19.0

81.48

163.5

49.73

56.38

2023-24

Outlook

397

194

14.9

19.4

80.30

162.1

49.41

55.25

2022-23

Outlook

396

191

14.3

19.7

79.12

160.0

49.31

54.33

Budget

2021-22

390

180

14.0

18.1

75.70

154.0

39.05

42.27 2020-21

growth, revenue does not return to its 2019-20 level does not return revenue growth, dollars. is projected revenue resource In total, non-renewable by to account for 10 per cent of total revenue a forecasted from 2024-25. This is an increase in 2020-21, but lower than its 8 per cent share and over the 2018-19 of revenue 12 per cent share 2019-20 period. over the forecast horizon. horizon. over the forecast over to gradually increase forecast WTI oil prices are average nearly US$58 in period and the forecast the light-heavy oil price in 2024-25. A decrease over the same time period provides differential another boost to well-head oil prices in Canadian a strengthening Saskatchewan. However, these offsets dollar outlook over the next four years US-dollar price improvements horizon offsets forecast in Canadian and mutes the overall price increase price gains. As a result, well-head prices, in Canadian price gains. As a result, to surpass 2019-20 prices not expected dollars, are is in 2024-25 oil production by 2024-25. Finally, Canadian dollar over the Similar to oil, a stronger forecast at 166.7 million barrels, nearly 7 per cent nearly 7 per at 166.7 million barrels, forecast lower than 2019-20 levels. to modestly forecast Potash prices, in U.S. dollars, are sales. horizon, as are over the forecast increase

Forecast

490 223

12.7 20.9

75.19

178.9 52.54

54.80

Actual

2019-20

2

2

O tonne) O

2

2

1

O tonnes) O 2

Ministry of Finance calculations derived from calendar-year forecasts. calendar-year from derived calculations Finance of Ministry

The average price per barrel of Saskatchewan light, medium and heavy oil. heavy and medium light, Saskatchewan of barrel per price average The

2

1

Canadian Dollar (US cents) (US Dollar Canadian

Potash Sales (million K (million Sales Potash

Potash Price (mine netback, US$/KCl tonne) US$/KCl netback, (mine Price Potash Potash Price (mine netback, C$/K netback, (mine Price Potash

Oil Production (million barrels) (million Production Oil

Well-head Oil Price (C$/barrel) Price Oil Well-head

Light-Heavy Differential (% of WTI) of (% Differential Light-Heavy WTI Oil Price (US$/barrel) Price Oil WTI KEY MEDIUM-TERM NON-RENEWABLE RESOURCE FORECAST ASSUMPTIONS RESOURCE FORECAST MEDIUM-TERM NON-RENEWABLE KEY is forecast to grow by 4.2 per cent per year, on by 4.2 per cent per year, to grow is forecast of GDP share to its pre-crisis returning revenue (14.9 per cent) in 2024-25. to pre-crisis to return is not forecast revenue Total revenue levels until 2022-23. In the 2019-20 Budget, pandemic. by 4.9 per cent per to grow is forecast revenue Tax Saskatchewan economy over the medium term. In addition, the wind-down of the Home Renovation period by the end of the forecast reduction the outlook over growth contributes to the robust period. to increase is forecast growth revenue Non-renewable After growth of 2.7 per cent in 2021-22, total revenue of 2.7 per After growth is higher than average, over the medium term. This of 3.6 per cent over average nominal GDP growth in own-source the same time frame and results $16.0 billion in 2022-23. In to reach was forecast does not surpass outlook, revenue the current $16.0 billion until 2024-25, two years later than anticipated prior to the onset of the COVID-19 period. Revenue on average, over the forecast year, in the by continued recovery is supported growth rate and the small business income tax Credit Tax on average, between 2021-22 7.5 per cent per year, high rate of and 2024-25. Despite this relatively 54 Budget 2021-22 COMPOSITION OFREVENUE on average,inthesubsequenttwoyears. grow atamore normal rateof3.4percentyear, to surpassitspre-crisis levelin2022-23andthen until 2024-25.Otherown-source revenue isforecast income isassumedtonotreturn topre-crisis levels rate of4.5percent.Inthefiscalplan,GBEnet projected toincrease at acombinedannualaverage GBE netincomeandotherown-source revenue are NON-RENEWABLE RESOURCEREVENUE

Billions of Dollars Millions of Dollars 10 15 20 1,000 2,000 3,000 4,000 5,000 0 5 1990-91 0 1990-91 Taxes Other OwnSources 2000-01 eeu lf xs Share ofRevenue(rightaxis) Revenue (leftaxis) – 1990-91TO 2024-25 2000-01

Federal Transfers

– 1990-91TO 2024-25

2010-11 relatively flat. cost-sharing programs are projected toremain Transfer intheoutlook,whileallotherfederal in theCanadaHealthTransfer andtheCanadaSocial down by2023-24.Thisdeclineisoffset byincreases Accelerated SiteClosure Program thatwillwind includes $200Moffederalfundingforthe over thefour-year horizon.The2021-22Budget Finally, federaltransfersare projected toremain flat

2010-11 Non-Renewable Resources 2021-22 Forecast 2021-22 Forecast

0 10 20 30 40 50 Per Cent of Revenue of Cent Per

Budget 2021-22 55

(770)

17,137

16,367

2024-25

Outlook

(1,160)

16,889

15,729

2023-24

Outlook

(1,685)

16,792

15,107

2022-23

Outlook

Under the current set of planning assumptions and set of planning assumptions Under the current timeline, Saskatchewan’s to balance a delayed return to to increase net-debt-to-GDP ratio is forecast 26.3 per cent 21.7 per cent in 2021-22 and peak at and declining as off levelling in 2024-25, before of the lowest in Canada one is expected to remain experienced and well below the levels the Province in the 1990s. annual deficits are reduced and the economy reduced annual deficits are continues to grow. the net debt over the in Despite the increase net-debt-to-GDP ratio medium term, Saskatchewan’s

(2,611)

17,089

14,478

Budget 2021-22

Deficit Deficit

Expense

(millions of dollars) of (millions Revenue Growth in base, or ongoing, expense over the in base, or ongoing, expense over Growth medium term is targeted at 1.5 per cent per year. This at 1.5 per cent per year. medium term is targeted of COVID-related by the fall-off will be offset growth is of financial sustainability, ratio, a key measure 31, 2021, the at 19.0 per cent on March forecast lowest among Canadian provinces. MEDIUM-TERM FINANCIAL OUTLOOK MEDIUM-TERM FINANCIAL and stimulus spending over the next two years. As a and stimulus spending over the next two expected to fall by 1.7 per cent total expense is result, of 0.6 per cent in in 2022-23, followed by growth in deficit in 2021-22 to a $770 million deficit for the is now targeted to balance 2024-25. A return 2026-27 fiscal year. over the is not forecast to balance While a return Saskatchewan is well horizon, forecast four-year given its positioned to withstand this development net-debt-to-GDP Saskatchewan’s low debt burden. 2023-24 and 1.5 per cent in 2024-25. to budget balance is projected the annual As a result, a $2.6 billion years, from three over the next improve 56 Budget 2021-22 As atMarch31 PUBLIC DEBT 2021-22 BORROWING AND DEBT The Province’s debtconsistsof: activities. is supported byrevenue from thoseCrown business the businessactivitiesofCrown corporations,andit other words, thisdebthasbeenincurred tofinance flows generatedbythesebusinessenterprises.In because theyare expectedtoberepaid from cash specifically fortheseentitiesare classifiedseparately as theirprincipalactivity. Amountsborrowed by, or individuals andorganizations outsidegovernment to and operatingauthoritytosellgoodsservices Government businessenterpriseshavethefinancial • • Billions of Dollars of self-sufficient governmentorganizations. amounts borrowed by, or specificallyonbehalf Government BusinessEnterpriseSpecificDebt (GBE) SpecificDebt;and, other thanGovernmentBusinessEnterprise General Debt– 10 15 20 25 30 35 40 0 5 2008 10.5 3.4 6.8 0.3 2009 3.6 7.9 . 0.2 0.2 4.1

2010 4.1 3.9 8.2 alldebtofgovernmententities 2011 Operating GRF 8.3 4.0 . . 0.3 0.3 0.2 4.1 2012 . . . . 4.1 3.8 3.8 3.8 3.8 4.4 8.5

2013 5.3 9.4 2014 10.7 0.5 6.4 Service Organizations and OtherGovernment Sask CapitalPlan 2015 11.7 0.6 7.3 13.4 2016

8.0 . 2.3 1.3

–

2017 16.0

8.3 5.4 2018 17.6 5.8 8.6 3.2 corporations. $0.5 billionofincreased debtfortheutilityCrown assets undertheSaskatchewanCapitalPlan,and a $1.5billionincrease indebtforinfrastructure cover revenue shortfalls andincremental expenses, is duetoa$2.2billionincrease inoperatingdebtto $4.2 billionfrom theMarch 31,2021forecast. This For 2021-22,publicdebtisexpectedtoincrease by GBE debt. $0.8 billionlowerthanestimated,duetodecreased Public debtatMarch 31, 2021isforecast tobe • • comprised of: Public debtasreported inthisbudgetpaperis 2019 19.7 6.2 4.6 8.9 been setasidefortherepayment ofdebt. Sinking Funds– lenders; Gross Debt– Enterprises Business Government 2020 21.3 9.4 5.8 . 7.2 6.1 less 2021 23.6 7.0 9.4

theamountofmoneyowedto 2022 27.8 8.5 9.9 9.4 theamountofmoneythathas 2023 11.1 10.5 31.3 9.7 2024 10.9 12.3 11.0 34.2 2025 13.3 11.9 11.2 36.4

Budget 2021-22 57

0.8

2021

1,118.2

1,160.6

Budget 3,520.0 1,400.0 1,026.1 4,546.1 2,120.0

11,150.8 2020-21

15,497.2

14,336.6

10,032.6

24,369.2 Forecast

0.2

2021

1,118.7

1,165.4

9,357.5 757.0

15,404.7

14,239.3

10,476.2

23,596.8

Forecast 3,900.0 1,600.0 4,657.0 2,300.0 Budget 2021-22

0.1

2022

1,374.8

1,072.3 9,910.9

Budget

19,230.2

17,855.4

10,983.2

27,766.3

– – –

–

GBE

Debt

2022

1,034.5 9,673.7

9,673.7

Specific

10,708.2 with financing infrastructure assets and the deficit. with financing infrastructure The GRF’s 2021-22 borrowing requirements are requirements 2021-22 borrowing The GRF’s amount is to assist maturing debt and the remaining estimated to be $4,657.0 million. Of this amount, estimated to be $4,657.0 million. Of this $284.2 million is for the purpose of refinancing

0.1

37.8

Debt

2022

275.0

237.2

1,374.8

General

19,230.2

18,092.6

17,855.4

– Operating

(Millions of Dollars) Government Service Organizations Gross Debt Sinking Funds Government Service Organization Debt Government Business Enterprises Gross Debt Sinking Funds

Government Business Enterprise Debt

Public Debt

Guaranteed Debt

Government Service Organizations Borrowing Requirements Other Government Service Organizations Government Business Enterprises (Millions of Dollars) Saskatchewan Capital Plan and General Revenue Fund DEBT As at March 31 for the principal and interest payments on this debt. for the principal and interest BORROWING REQUIREMENTS Virtually all borrowing is done by the General all borrowing Virtually on the GRF borrows Revenue Fund (GRF). Where the entity is responsible behalf of a government entity, BORROWING 58 Budget 2021-22 DEBT CHARGES SINKING FUNDS by $163.0millionto$2,447.1million. For 2021-22,sinkingfundsare expectedtoincrease higher-than-expected earningsduring2020-21. than estimated.Thevarianceisprimarilydueto be $2,284.1million,whichis$5.3millionhigher Sinking fundsatMarch 31,2021are forecasted to retirement ofaportion ofthegovernment’s debt. Sinking fundsare moniessetasidefortheorderly SINKING FUNDS General RevenueFund Total SinkingFunds Government BusinessEnterprises (Millions ofDollars) 1 Debt Charges–General Other GeneralDebt Less: GRFInterestPaidtoOtherGovernmentEntities (Millions ofDollars) Government ServiceOrganizations Pension Liabilities

Net IncomefromGovernmentBusiness Enterprises. Debt chargesdonotincludeamounts pertainingtoGovernmentBusinessEnterpriseSpecificDebt. These amountsarereflectedin – GENERAL DEBT

1

Forecast

2,284.1 1,165.4 1,118.7 2021

Contributions

$69.4 million. increase debtcharges in2021-22byapproximately rates from levelsassumedintheBudgetwould liabilities. Aonepercentage pointincrease ininterest interest rateof3.0percentisassumedforpension and 2.0percentforlong-termborrowings. An 0.5 percentforshort-term borrowing transactions The 2021-22debtcharges assumeinterest ratesof is accruedonpensionliabilities. commissions. Debtcharges alsoincludeinterest that as theamortization ofpremiums, discounts,and include othercostsrelated togeneralgross debt,such In additiontointerest payments,debtcharges DEBT CHARGES

289.4 194.0 2022 95.4

Earnings 2022 51.5 24.5 27.0

Redemptions

2021-22 Budget 558.0 755.0 181.0 537.5 (20.5) 36.5 (177.9) (166.3)

2022 (11.6)

Forecast 2020-21 Budget 2,447.1 1,072.3 1,374.8 509.4 713.5 190.5 497.2 (12.2) 2022 25.8

Budget 2021-22 59

50.1 46.6 43.2 38.9 37.5 37.5

provinces. on the following page illustrates the trend The chart of GDP. as a percentage for net debt and forecast NET DEBT position financial of a province’s Another measure all of a province’s is “net debt.” Net debt aggregates of below shows that the Province The chart of GDP is net debt as a percentage Saskatchewan’s cent, which is best among to be 19.0 per forecasted liabilities, and subtracts the financial assets that it liabilities, and subtracts the financial assets these obligations. has at its disposal to repay A credit rating is an important indication of a indication rating is an important A credit an as it represents fiscal health government’s its debt. ability to repay assessment of a province’s rating ranks second credit Overall, Saskatchewan’s provinces. best among Canadian 33.4

A

DBRS

A(high) A(high) A(high) AA(low) AA(low) A(low)** AA(low) AA(high) AA(low)** 21.0

19.0 19.0 A A+ A+ A+ A** AA AA- AA- A+** S&P AAA**

Aa2 Aa3 Aa3 Aa2 Aaa Aa2 Aa2 Aa2 A1** Aaa** Moody’s

PE NL SK AB NS BC NB QC ON MB Sources: Net Debt: Jurisdictions’ most recent data (as of March 16, 2021) Sources: Net Debt: Jurisdictions’ GDP, SK: Saskatchewan Ministry of Finance GDP, All others: Statistics Canada, IHS Markit

Negative outlook Positive outlook

** * PE AB ON NB BC NS MB NL SK Jurisdiction QC Service (Moody’s), Standard & Poor’s (S&P) & Poor’s Standard Service (Moody’s), (DBRS). and DBRS Morningstar CREDIT RATINGS OF CANADIAN PROVINCES OF CANADIAN CREDIT RATINGS As at March 19, 2021 CREDIT RATINGS three ratings from credit Saskatchewan receives Investors rating agencies: Moody’s major credit PROJECTED NET DEBT AS A % OF GDP % OF GDP A AS PROJECTED NET DEBT As at March 31, 2021 60 Budget 2021-22 As atMarch31 NET DEBT AS A %OFGDP Percentage of GDP 10 15 20 25 30 0 5 11.2 5.2 5.9 6.0 6.1

6.6 5.5 6.7 9.9 13.5 14.2 14.3 14.8 19.0 21.7 24.6 26.0 202520242023202220212020201920182017201620152014201320122011201020092008 26.3 Budget 2021-22 61

families. a disability can claim with Families of children of up an additional $50, for a total tax credit to $200 per year per child. The AFB will be an income-tested tax credit. to be eligible, families must have a In order The benefit will provide a refundable tax credit a refundable The benefit will provide of up to $150 per year per child to eligible combined net income of $60,000 or less. • • Active Families Benefit Active Families for low affordable activities more Making children’s a to provide Benefit (AFB) is being reinstated to assist families credit income tax refundable in cultural, children with the cost of registering activities. and sports recreational suitable for those that are are Eligible programs located in by a service provider offered are supervision;Saskatchewan; involve instruction and and payment of a fee. registration and require • to January 1, 2021, As the AFB will be retroactive in their children eligible families who enroll 306-787-3828. and moderate income families is a key priority for and moderate income the Active Families the Government. As a result, to actively participate; children and require children and cultural activities in 2021 arts qualifying sports, at and Sport contact the Ministry of Parks, Culture are reminded to keep their receipts so they may claim to keep their receipts reminded are the benefit with their 2021 income tax filings. information on this initiative, please For further

2021-22 REVENUE INITIATIVES REVENUE 2021-22

. www.saskatchewan.ca/residents/taxes-and- eligible expenses incurred between January 1, 2022 eligible expenses incurred and December 31, 2022. information on this initiative can be found Further at $945 in savings may be claimed in 2022 in respect of $945 in savings may be claimed in 2022 in respect October 1, 2020 and December 31, 2021. A further investments/tax-credits income tax in 2021 by claiming a tax credit on income tax in 2021 by claiming a tax credit between expenses incurred eligible home renovation Last fall, the Government introduced a new Last fall, the Government introduced MAKING LIFE MORE AFFORDABLE MAKING LIFE MORE to Credit Saskatchewan Home Renovation Tax construction activity and help stimulate residential Saskatchewan housing affordability. improve homeowners may save up to $1,155 in provincial Saskatchewan Home Renovation Saskatchewan Home Renovation Credit Tax In response to the challenges posed by the pandemic, to the challenges posed by the In response This included helping with the cost of home This included helping taxes on small businesses. and reducing renovations revenue further The 2021-22 Budget introduces drive sustained affordability, initiatives to improve the Government introduced initiatives in the fall of initiatives in the Government introduced economic recovery. Saskatchewan’s 2020 to support the consistent and fair application and ensure growth it is only a announced in the Budget. However, is advised to contact the summary and the reader authority and consult the ministry or responsible for specific details. enacting legislation or regulation of taxes in Saskatchewan. detail the tax measures This paper describes in more 62 Budget 2021-22 Reduction totheSmallBusinessTax Rate credits economic-development/business-incentives-and-tax- www.saskatchewan.ca/business/investment-and- and encourageinvestmentintheprovince, pleasevisit Saskatchewan’s competitive businessenvironment For further informationoninitiativesthatimprove benefit ofallresidents. additional incentivesthatwilldrivegrowth forthe remain inplaceandthe2021-22Budgetannounces and astrong Saskatchewan,existingincentiveswill of thecommitmenttoastrong economicrecovery new investmentintheprovincial economy. Aspart initiatives support competitivenessandencourage resources, andinnovationtechnology. These including manufacturing,agriculture, non-renewable that coverabroad rangeofeconomicsectors, Saskatchewan’s taxsystem includesseveralincentives of thewaystodriveandsustaineconomicgrowth. years tocome.Acompetitivetaxenvironment isone that results inastronger Saskatchewannowandfor andgrowthservices; provides foraresilient economy increased investmentinandimprovements topublic correspondingly lowersunemployment;itallowsfor people torealize theirfuture intheprovince, and residents is ashared missionthatengagesallSaskatchewan quality oflifeforthepeopleSaskatchewan.Growth The purposeofeconomicgrowth istoimprove the GROWING THEECONOMY rate willremain at$600,000 small businessescanearnat the smallbusinesstax and to2percentonJuly1, 2023. Theamountwhich The taxratewillreturn to1percenton July1,2022 corporate incometaxrate,effective October1,2020. Government temporarilyeliminateditssmallbusiness through the pandemicandtohelpthemrecover, the Last fall,tosupport Saskatchewan smallbusinesses .

– itcreates newjobsandopportunities for – thehighestthreshold

path toeconomicrecovery. bolster employmentandkeepSaskatchewanonthe businesses overthenextthree yearswillhelpthemto in Canada.LoweringtaxesforSaskatchewansmall Innovation Saskatchewan at306-933-7222. For further informationontheSTSIprogram, contact • • • effective, thefollowingchangeswill bemade: and withtheintentofmakingprogram more and inresponse tofeedbackreceived from thesector In additiontoextendingtheprogram forfiveyears, and scalable. products, orprocesses services thatare repeatable technologies inanewway, tocreate newproprietary developing newtechnologies,orapplyingexisting in EligibleStart-up Businesses(ESBs)thatare corporate orventure capitalcorporationinvestments 45 percentincometaxcredit forindividual, The program provides for anon-refundable stage technologystart-ups. 2020-21, toencouragebusinessinvestmentinearly introduction oftheSTSIasapilotprogram, endingin The 2018-19Budgetoriginallyannouncedthe additional fiveyears,through to2025-26. Incentive (STSI)program isbeingextendedforan sector, theSaskatchewanTechnology Start-up With thegoalofgrowing Saskatchewan’s technology Incentive Saskatchewan Technology Start-up that canbeissued. established onthemaximum valueoftaxcredits an annualcapof$2.5million peryearis and, credits increases from fouryears to sevenyears; the carry-forward periodtoclaim unused tax $2 million; program will double,from $1millionto the amountthatanESBcanraiseunder

Budget 2021-22 63

shut-in/suspended for the previous six for the previous shut-in/suspended months, with the previous consecutive calendar a minimum months having producing three 90 per cent water-cut. capital investment of An average minimum to directly $20,000 per well must be incurred capabilities and extend water handling improve activities. and maintenance repair consecutive calendar months. consecutive calendar wells must have been Eligible shut-in/suspended well, excluding standard life of the the producing least 90 per cent water-cut for the previous three for the previous least 90 per cent water-cut Eligible active oil wells must have produced at must have produced Eligible active oil wells sulphate royalty system which simplifies the existing sulphate royalty Sodium Sulphate Royalty Incentive a new sodium The 2021-22 Budget introduces a modernized calculation and provides royalty investment incentive. increase program participation and encourage new and encourage participation program increase 2026. 31, March information on this initiative, please For further at and Resources contact the Ministry of Energy 306-787-4765. • HWCP oil wells will Tier 3rd and Eligible Old, New, status only on their royalty be assigned 4th Tier HWCP Eligible 4th Tier oil production. incremental point royalty two percentage a oil wells will receive designed to This update to the existing HWCP is that oil production capital investments and increased would otherwise not occur. and will The new HWCP begins April 1, 2021 years, with a sunset date of in place for five remain • production. on all their rate reduction •

Methane

Saskatchewan Growth Plan committed to Saskatchewan Growth production rates from wells that produce high wells that produce rates from production volumes of water. a new royalty provides The modernized program The 2021-22 Budget introduces a modernized and The 2021-22 Budget introduces High Water-Cut Oil Royalty Incentive High Water-Cut (HWCP), to Program expanded High Water-Cut oil encourage capital investment and increase substantial investments in water benefit where handling capacity are made. handling capacity are Associated Natural Gas Associated Natural Royalty Moratorium The gas a moratorium on associated natural introducing is 2021-22 Budget, the Province the With royalties. by implementing a royalty meeting this commitment venting and flaring of natural gas. begins April 1, 2021 and moratorium The royalty five years, with a sunset date in place for will remain rate of 0 per cent for a period of five years on all rate of 0 per cent for oil. This in association with natural gas produced with approximately oil producers will provide relief. $3.8 million in annual royalty of Saskatchewan’s This initiative is part of the Province’s Action Plan, which in turn is part It is designed to overall climate change strategy. to invest in new methane encourage oil producers reduce and further projects emission reduction 31, 2026. of March information on this initiative, please For further contact the Ministry of Energy and Resources at and Resources contact the Ministry of Energy 306-787-4765. 64 Budget 2021-22 effective September1,2021. price ofallvapourliquids,products and devices, Tax (VPT)witharateof20percenton theretail 2021-22 Budgetintroduces anewVapour Products attractive toyouthandnon-smokers,the To helpprevent vapourproducts from being products in linewithexistingtobaccolegislation. in recent years tobringthemarketingofvapour The Governmenthasmadeanumberofchanges Taxation ofVapour Products as welltheapplicationofEducationProperty Tax. heat-not-burn tobaccoproducts andelectricvehicles; taxes, includingthetaxationofvapourproducts, to improve thefairapplicationofSaskatchewan’s The 2021-22Budgetalsointroduces severalmeasures IMPROVING TAX FAIRNESS 306-787-4765. contact theMinistryofEnergy andResources at For further informationonthisinitiative,please opportunities. challenges andcreate newdiversificationinvestment to helptheindustrythrough itscurrent market These sodiumsulphateroyalty changesare designed • • royalty changeswillhavetwocomponents. Retroactive toApril6,2020,thesodiumsulphate improve operatingefficiency. capital projects thatdiversifyproducts or capital investmentcredit willbeforapproved current yearroyalties payable.This otherwise expenditures thatwillbeeligibleforuseagainst A credit of10percentqualifyingcapital all sodiumsulphateproduction. royalty withaflatroyalty rateof3percenton Replacement ofthescaledproduction-based

contact theMinistryat website atwww.sets.saskatchewan.ca/taxinfo tobacco sticks,pleaserefer totheMinistryofFinance For further informationonthetaxationofHNB resulting inaHNBtaxrateof20.5¢perstick. The current taxrateoncigarettes is27.0¢perstick, rate ontobaccocigarettes, effective June1,2021. Act atarateofapproximately 75percentofthetax sticks asaseparatecategoryunder legislation, the2021-22BudgetaddsHNBtobacco tobacco sticksinlinewithexisting tobacco products andtobringheat-not-burn(HNB) To helpmaintaintaxequitybetweendifferent typesof Tobacco Products Taxation ofHeat-Not-Burn totaled almost$616million. $454 million,whileroad maintenanceexpenditures year, road-use FuelTax revenues totaledalmost highway system.FortheGovernment’s 2019-20fiscal directed atpreserving andimproving theprovincial Tax applicable toon-road travelinSaskatchewanis The FuelTax Accountability Actensures thattheFuel Taxation ofElectricVehicles www.sets.saskatchewan.ca/taxinfo to theMinistryofFinancewebsiteat For further informationontheVPT, pleaserefer to obtainaVPTlicenseandsubmitreturn. Retailers sellingvapourproducts willberequired Ministry at [email protected] [email protected] . orcontactthe

The Tobacco Tax

or .

Budget 2021-22 65

. For further information on Saskatchewan’s EPT information on Saskatchewan’s For further mill rates, please visit www.saskatchewan.ca/residents/taxes-and- will be: agricultural 1.36; residential 4.46; will be: agricultural 1.36; residential 9.79. 6.75; and resource commercial/industrial to slightly increase overall revenues to the revenues overall to slightly increase inflation. The in line with year-over-year Province classes 2021 EPT mill rates for the various property investments/property-taxes/education-property-tax- system Education Property Tax Mill Rates Tax Education Property all Saskatchewan legislation requires Provincial every four years, since to be revalued properties over time. The 2021 revaluation their values change to decision by the Government follows the recent and commercial/industrial assessments of residential, have declined. properties resource introducing In this context, the 2021-22 Budget is mill rates (EPT) Tax changes to Education Property reduce the percentage of value taxable assessment the percentage reduce 100 per cent to 85 per cent. from taxable assessments of Since the 2017 revaluation, while taxable have increased, agricultural properties rate for commercial/industrial and resource properties and resource rate for commercial/industrial

or contact the .

[email protected] The Fuel Tax Accountability Act, ensuring that The Fuel Tax Ministry at Electric vehicles (EVs) are being purchased in ever being purchased are Electric vehicles (EVs) increasing numbers across Canada and around the Canada and around numbers across increasing of these vehicles in world. While the number they are low, relatively Saskatchewan is currently vehicles These in number every year. increasing roadways, and tear on provincial contribute to wear not consume traditional fuels but because they do Tax. Fuel the provincial through a new introduces The 2021-22 Budget therefore EV registered annual tax of $150 for each passenger October 1, 2021. Revenue in Saskatchewan, effective in the calculations this tax will be included from they are not contributing to highway maintenance they are under are revenues Fuel Tax this and all other road-use vehicles, While this tax will only apply to passenger the future the Government will continue to examine dedicated to provincial highway maintenance. dedicated to provincial The tax will be collected by Saskatchewan registered. Government Insurance when the EV is potential for expanding the tax to commercial The vehicles and interjurisdictional trucking. stations. at charging the tax on EVs, information regarding For further to the Ministry of Finance website at please refer Government will also consider options to apply a tax Government will also consider options www.sets.saskatchewan.ca/taxinfo 66 Budget 2021-22 families consumingtheseitems. reading materials,thereby reducing thetaxespaidby groceries, residential naturalgasandelectricity apply tocertain essentialitemssuch asbasic Saskatchewan’s Provincial SalesTax (PST)doesnot have becomefundamentalelementsofthetaxsystem. pursuing theseobjectives,sometaxexpenditures promoting certain typesofeconomicactivity. In such asenhancingthefairnessoftaxsystemor Tax expenditures canachieveanumberofobjectives, RATIONALE FORTAX EXPENDITURES Saskatchewan’s taxexpenditures. estimates oftherevenue impactsofseveral same wayasdirect expenditures. Thispaperprovides government andtheyaffect thefiscalpositionin reduce theamountofrevenue generatedbya the samewayasdirect spendingprograms, they overall revenue estimatesandare notpresented in While taxexpenditures are usuallyabsorbedinthe businesses. families, farmers,seniorcitizensandsmall to avarietyofindividualsandbusinesses,including or deferrals.Taken together, theyprovide assistance exemptions, deductions,credits, preferential rates called “taxexpenditures” andmayinclude certain taxpayers.Thesereductions are commonly and economicgoalsbyreducing thetaxespaidby revenue, governmentsalsoattainsomeoftheirsocial Although theprimarypurposeoftaxationistoraise INTRODUCTION SASKATCHEWAN’S TAX EXPENDITURES

and retention incentives. taxpayer behaviours,includinginvestmentincentives several programs designedtoencouragespecific Saskatchewan’s incometaxsystemalsodelivers disability-related credits. of thetaxpayer, includingfamily-basedcredits and credits thatrecognize the personalcircumstances system hasdistinctprovincial non-refundable tax In addition,Saskatchewan’s personalincometax revenue. system thatreduce Saskatchewanincometax fundamental aspectsoftheprovincial incometax determination oftaxableincomecanbeconsidered As aresult, deductionsthatcontributetothefederal income asdefinedforfederaltaxpurposes. provincial marginal taxratesdirectly totaxable Saskatchewan’s personal incometaxsystemapplies natural gasusedforheating. consistent taxtreatment withthePSTexemptionfor exempts heatingfuelsfrom theFuelTax toensure farmers andprimaryproducers. Saskatchewanalso Saskatchewan provides reduced FuelTax ratesto ensure taxcompetitivenesswithotherjurisdictions, To provide taxrelief tokeyeconomicsectorsand economy, includingmanufacturingandfarming. support particular keysectorsoftheprovincial Other exemptionsfrom thePSTare intendedto

Budget 2021-22 67

and go

personal income tax system effective for the personal income tax system effective 2021 taxation year and the temporary elimination of the small business corporate income tax rate. investment intentions for subsequent taxation years. Expenditure The 2021-22 Saskatchewan Tax of the Accounts incorporate the re-indexation income tax assessment data for the 2018 taxation expected along with assumptions regarding year, changes in population, employment, income and and investment intentions. estimates for personal and corporate expenditure Tax the Government’s from derived income taxes are uses actual internal tax simulation model, which This year’s tables also provide updates to the 2018, tables also provide This year’s estimates that were 2019 and 2020 tax expenditure last year. reported estimates for PST and Fuel Tax expenditure Tax historical tax collection data and derived from are business Statistics Canada data on personal and consumption patterns, along with assumptions sales expected changes in population, retail regarding tax expenditures of the Government of Saskatchewan. of the tax expenditures 2021 SASKATCHEWAN TAX TAX 2021 SASKATCHEWAN EXPENDITURE ACCOUNTS estimates of the major The following tables provide revenue. Readers interested in examining the federal Readers interested revenue. are of tax expenditures presentation government’s Finance Canada website at invited to visit the www.canada.ca/en/department-finance expenditures have an impact on Saskatchewan’s expenditures to “Publications.”

First, there is the cost of forgone revenue. Tax revenue. of forgone is the cost First, there expenditures result in the reduction of revenue in the reduction result expenditures on a collected and have a significant impact financial position. government’s may add to the Second, tax expenditures complexity of the tax system, leading to complexity of the tax system, leading increased administrative effort and compliance administrative effort increased costs for businesses, consumers and governments. distortions may create tax expenditures Third, in consumer and other economic behaviour by providing preferential treatment for certain treatment preferential providing categories of consumer expenditure. GOVERNMENT OF CANADA GOVERNMENT OF CANADA EXPENDITURES TAX a detailed The federal government produces of the part that are on tax expenditures presentation and personal federal tax system. Since Saskatchewan’s based upon the federal corporate income taxes are definition of taxable income, many of the federal tax ASSOCIATED COSTS ASSOCIATED serve social and important While tax expenditures of any tax economic objectives, the introduction in associated costs. These costs results expenditure To improve tax competitiveness, Saskatchewan levies tax competitiveness, improve To rate on small businesses and a a lower income tax take several forms. • special income tax rate on manufacturing and special income tax In addition, Saskatchewan (M&P) profits. processing to assist Credit Tax Investment a refundable provides • M&P companies that invest in qualifying new or M&P companies that used M&P assets for use in the province. used M&P assets for • Saskatchewan also provides a Research and a Research provides Saskatchewan also qualifying R&D activities. is provided The rationale for each tax expenditure in the notes that follow the tables. Development (R&D) Tax Credit in support of in support Credit Tax Development (R&D) 68 Budget 2021-22 (Value of Tax ExpendituresinMillionsofDollars) Tax Expenditure Accounts 2021 GovernmentofSaskatchewan

Other Exemptions

Fuel Tax Provincial SalesTax 8. 7. 6. 5. 2. 1. 12. 4. 3. 1. 2. 3. 10. 9. 2. 1.

11. Naturalgas Electricity Usedgoodsandvehicles Femininehygieneproducts RebateforNewResidentialConstruction SaskatchewanLow-Income Tax Credit Agriculture,lifeandhealthinsurance Personalservices Exemptionforprimaryproducers Directagents Basicgroceries Exemptionforheatingfuels Readingmaterials Fertilizer, pesticideandseed Farmmachineryandrepairparts Prescriptiondrugs Exemptionforfarmactivity

......

...... – exemptamounts ......

......

Revised Actual 133.3 136.9 170.6 224.2 105.6 2018 2018 37.6 66.5 45.9 28.1 35.8 12.3 46.7 35.4 79.7 2.1 1.2 –

Revised Revised 135.5 145.4 179.0 236.3 102.6 2019 2019 72.6 46.7 28.2 37.9 49.3 36.5 83.7 11.3 11.1 2.2 1.3 –

Revised Revised 137.1 147.6 226.3 105.7 184.1 2020 2020 67.4 47.6 13.9 28.3 31.3 50.1 36.2 93.7 11.9 2.8 2.3 1.4

Estimate Estimate 140.0 151.5 104.9 230.0 109.6 189.2 2021 2021 68.2 48.0 14.1 28.5 12.6 25.8 51.7 35.5 2.9 2.3 1.6

Notes Notes 1,2 1 1 1 1 3 1 2 1 1 2 1 2 2 2 1 1 Budget 2021-22 69 4 4 4 4 4 4 4 6 4 4 4 4 4 4 4 4 5 2 4 4 4 4 5 4 4 4 4 4 4 2,7 2,7 2,4 Notes Notes

1.2 0.5 1.1 3.3 1.5 4.5 2.5 28.1 89.7 54.3 12.0 64.9 13.2 23.7 15.0 24.0 35.2 40.0 17.7 31.1 14.8 98.3 14.6 15.0 23.1 52.0 13.6 2021 2021 469.9 105.9 148.7 107.6 1,054.8 Estimate Estimate

2.0 0.5 1.1 3.2 1.5 4.5 2.5 11.5 27.4 88.6 53.3 12.0 64.6 13.0 23.2 15.0 23.3 34.0 40.0 16.8 29.8 14.5 95.6 15.0 22.6 50.4 16.0 2020 2020 393.2 103.1 148.7 106.2 1,042.6 Revised Revised

– 1.4 8.7 0.1 1.1 3.2 1.5 4.5 27.6 89.2 53.6 10.5 64.7 13.1 23.4 23.5 34.3 28.2 17.0 30.0 14.6 96.3 10.4 14.5 22.8 50.8 13.5 2019 2019 339.7 103.8 149.7 106.9 1,049.9 Revised Revised

– 1.3 0.1 1.1 3.2 7.9 1.5 4.5 97.0 53.2 10.8 64.9 13.0 23.2 23.3 34.0 12.7 38.6 16.8 29.8 14.5 95.5 14.4 22.6 50.4 27.4 13.4 2018 2018 380.0 103.2 148.4 106.1 Actual Actual 1,041.6

......

......

......

......

......

...... Basic personal tax credit Spousal tax credit Labour-sponsored Venture Capital Tax Credit Tax Capital Labour-sponsored Venture Graduate Retention Program Tax Credit Tax Graduate Retention Program Pension income tax credit Equivalent-to-spouse tax credit Manufacturing and Processing Profits Mineral Exploration Tax Credit Tax Mineral Exploration Political Contributions Tax Credit Tax Political Contributions Student loan interest tax credit Age tax credit Registered Pension Plan contributions Registered Pension Lower tax rate for small business Registered Retirement Savings Plan Registered Retirement Credit for Manufacturing Tax Investment Annual union, professional or like dues Annual union, professional Disability tax credit Caregiver tax credit Medical expenses tax credit Supplement to the age tax credit Canada Pension Plan contributions tax credit Canada Pension Plan contributions tax Research and Development Tax Credit Tax Research and Development Child care expenses Carrying charges Charitable contributions tax credit credits tax Volunteer Dependent child tax credit Employment Insurance premiums tax credit Employment Insurance premiums tax Moving expenses Allowable employment expenses First-time homebuyers tax credit Capital gains deduction 1. 11.

1. 2. 4. 9. 3. 2. 2. 3. 10. 4. 1. 1. 2. 3. 3. 12. 13. 5. 7. 4. 4. 6. 14. 16. 6. 8. 5. 7.

15. 8.

Corporation Income Tax Personal Income Tax Personal Income

Credits Tax Saskatchewan Non-Refundable Tax Reduction Tax

Deductions from Income contributions and Processing

Measures Tax Other Saskatchewan 70 Budget 2021-22 4. 3. 2. 1. TAX EXPENDITURES– expenditures, aspreviously noted. in thefederalgovernment’s report ontax these measures andtheirobjectivescanbefound similar federaltaxexpenditures. Descriptionsof definition oftaxableincome;othersparallel provided becausetheyformpart ofthefederal to personalandcorporateincometaxesare Most ofSaskatchewan’s taxexpenditures related incomes. for Saskatchewanresidents withlowandmodest This measure mitigatestheimpactofPST jurisdictions. competitiveness withsimilarbusinessesinother of theprovincial economyandhelpensure tax These measures provide taxrelief tokeysectors affordability. reducing theoverallcostandcontributingto purchase theseparticular essentialitems,thereby and families(andinsomecases,businesses)who These measures provide taxrelief forindividuals

NOTES

7. 6. 5. earnings toreinvest andcreate jobs. allow thesebusinessestoretain more oftheir business activityinkeyeconomicsectors,and encourage orattractinvestment,support corporations. Thesemeasures are designedto a defactoprogressive tax ratestructure forsome small businessesandM&Pcreate corporations, thesepreferential taxratesfor While there isonlyonestatutorytaxratefor up to$20,000ontheirincometax. Saskatchewan byproviding ataxcredit of secondary institutiontoliveandworkin students whohavegraduatedfrom apost- The GraduateRetentionProgram encourages income-tested. seniors, recognizing thattheagetaxcredit is age taxcredit provides broad taxrelief toall families withchildren. Thesupplementtothe recognizes thenon-discretionary expensesof seniors. Thedependentchildtaxcredit tax relief tofamilieswithchildren andto and supplementtotheagetaxcredit provide Saskatchewan’s dependentchildtaxcredit

Budget 2021-22 71

A single person earning $40,000 will pay A single person earning $40,000 will pay taxes. $3,094 in total provincial will pay A two-income family earning $75,000 taxes. $4,552 in total provincial will pay A two-income family earning $100,000 taxes. $7,581 in total provincial will pay A two-income family earning $125,000 taxes. $10,779 in total provincial

pay total provincial taxes that are very competitive taxes that are pay total provincial with a with those paid in other Canadian cities, SASKATCHEWAN’S RANKING FOR 2021 RANKING SASKATCHEWAN’S individuals and families will In 2021, Saskatchewan for all four ranking among the lowest in Canada family situations. representative • • • • cities in Regina also ranks favourably with other taxes and Canada when comparing provincial family situations, utilities. For the representative Regina again ranks among the lowest overall for Regina again ranks among the lowest utility bundle of all jurisdictions then Saskatchewan’s costs would be the lowest in the country. combined taxes and utilities of the 10 cities surveyed.combined taxes and utilities of the 10 the As described in the Notes section of this paper, actual utility rates for the following tables reflect do not incorporate They therefore 2020 calendar year. the full impact of the SaskPower and Auto Fund based on 2021 in 2021. If the tables were rebates known as of publication for utility rates and rebates

OF TAXES AND UTILITIES OF TAXES

2021 INTERCITY COMPARISON COMPARISON INTERCITY 2021

children, owning its own home, with an annual children, owning its own home, with an annual children, family income of $75,000; a family of two adults and two dependent family income of $100,000; and, a family of two adults and two dependent family income of $125,000. a family of two adults and two dependent owning its own home, with an annual children, with an annual income of $40,000; a single person, living in rental accommodation, a single person, living in rental • • of Canada. the total cost For the purposes of such a comparison, with the costs living in Regina has been compared the country. utilities costs associated taxes and The provincial • compare the attractiveness of living in different parts of living in different the attractiveness compare families of these taxes and utilities for representative cities across those families would face in other major and income with the following family characteristics A number of factors contribute to the quality of life A number of factors INTRODUCTION and families in Saskatchewan enjoyed by individuals example, access to excellent Canada. For and across and social services education is a key part health care, of overall quality of life. quality of life are factors that affect Other important way to is a reliable taxes and utilities provincial a representative levels have been calculated to provide comparison: • the level of taxation and the cost of utilities and auto the level of taxation and the cost of utilities of insurance. Calculating the combined cost 72 Budget 2021-22 Health Premiums Total Taxes Total Taxes Total Household Telephone Home Heating Household UtilityCosts Total Household Rebates Tax Creditsand Rebates Tax Creditsand Electricity Household UtilityCosts Sales Tax Electricity Health Premiums UtilityCosts Auto Insurance Taxes Gasoline Tax Income Tax Provincial Provincial Taxes (Values inDollars) Family at$75,000 Total Income 2021 IntercityComparisonof Taxes andUtilities andUtilities UtilityCosts Auto Insurance Taxes Gasoline Tax Income Tax Provincial Provincial Taxes (Values inDollars) Single Personat$40,000 Total Income 2021 IntercityComparisonof Taxes andUtilities andUtilities

Telephone Sales Tax

Total Provincial Total Provincial

Vancouver Vancouver

(1,380) 5,029 2,067 3,714 1,331 2,850 3,160 6,061 2,850 2,347 8,189 1,755

362 987 502 830 746 718 359 362 (89) 0 0

Calgary Calgary 1,730 6,198 2,837 4,588 1,801 3,256 3,097 6,519 3,256 1,931 9,295

361 851 971 260 130 361 0 0 0 0 0 0

Regina Regina 1,414 3,739 2,403 1,231 4,552 5,497 1,231 3,094 2,347 2,221 8,291 1,905 (150) 258 836 914 873 300 150 258 0 0 0

Winnipeg

Winnipeg

10,534 3,309 2,254 1,355 7,225 6,373 1,355 4,942 3,086 2,003 4,119 813 394 747 505 893 280 140 394 0 0 0 0

Toronto Toronto 11,786 (1,290) 7,719 1,086 6,443 5,312 4,067 9,241 5,312 1,505 1,338 1,192 2,798 2,808 (329) 450 388 933 743 750 294 147 388 Montréal

Montréal

10,156 (4,324) 4,785 2,715 1,899 5,371 7,064 1,899 4,425 2,737 1,487 4,349 1,857 1,324 3,502 (759) 662 641 388 428 444 222 388

13,602 5,330 2,690 1,621 1,039 8,272 6,718 1,621 2,583 1,490 4,028 2,279 John Saint Saint John 4,511 3,511 (200) 391 678 310 155 391 (60) 0 0

Halifax Halifax 15,091 5,913 3,239 1,992 1,410 9,178 8,065 1,992 3,181 1,490 4,826 5,357 2,119 3,511 392 855 310 155 392 0 0 0 0

Charlotte- Charlotte-

town town 14,179 5,327 3,187 1,754 1,342 8,852 7,617 1,754 2,955 1,490 4,430 5,039 1,837 1,039 3,511 (160) 394 302 145 394

0 0 0

St. John’s St. John’s 14,809 6,307 4,131 2,991 1,180 8,502 7,910 2,991 2,534 1,490 3,779 4,581 1,747 3,511 (450) 389 751 410 205 389 0 0 0

Budget 2021-22 73

0 0 0 0 389 389 410 410 1,747 1,747 1,180 4,706 1,180 4,092 2,991 2,991 6,307 7,478 6,307 11,980 16,087 22,394 18,287 10,971 St. John’s St. John’s

0 0 0 0 394 394 302 302 1,837 1,837 1,342 4,706 1,342 4,092 1,754 1,754 5,327 5,327 8,123 11,816 16,824 22,151 17,844 12,517 town town

Charlotte- Charlotte-

0 0 0 0 392 392 310 310 2,119 2,119 1,410 4,706 1,410 4,092 1,992 1,992 5,913 5,913 8,800 19,115 17,742 23,655 13,202 12,726 Halifax Halifax

0 0 0 0 391 391 310 310 Saint Saint John John 2,279 1,039 4,706 2,279 1,039 4,092 1,621 1,621 5,330 5,330 7,537 11,939 15,831 21,161 17,269 10,815

388 641 388 641 444 444 1,857 4,694 1,857 1,324 4,082 1,324 1,899 1,899 4,785 4,785 8,245 (2,325) (3,325) 21,118 16,333 15,555 10,770 12,196

Montréal Montréal

933 388 933 388 294 294 960 (450) (870) 3,765 1,086 1,086 1,200 3,274 7,734 5,312 5,312 5,990 7,719 7,719 4,076 10,799 18,518 15,453 Toronto Toronto

0 0 0 0 747 813 394 747 394 813 280 280 2,675 2,326 1,355 1,355 3,309 3,309 7,961 11,307 14,262 17,571 10,567 13,876

Winnipeg Winnipeg

0 0 0 0 836 258 836 258 300 300 2,531 1,414 1,414 2,201 1,231 7,581 1,231 3,739 3,739 7,948 5,080 11,320 10,779 14,518 Regina Regina

0 0 0 0 0 0 851 361 851 361 260 260

1,730 1,730 3,256 7,848 5,427 3,256 6,198 6,198 7,588 5,167 11,625 14,046 Calgary Calgary

0 0 0 830 987 830 362 987 362 718 718 (700)

2,329 2,025 2,850 8,720 5,968 2,850 5,029 5,029 5,673 3,925 13,749 10,997

Vancouver Vancouver

Electricity Sales Tax Electricity Household Utility Costs Home Heating Telephone Total Provincial Total Provincial Total

Telephone Household Utility Costs Home Heating Health Premiums Sales Tax Tax Credits and Tax Rebates

Auto Insurance Utility Costs and Utilities Gasoline Tax Taxes Provincial Taxes Provincial Tax Income 2021 Intercity Comparison of Taxes and Utilities Taxes 2021 Intercity Comparison of Income Total Family at $125,000 in Dollars) (Values Utility Costs and Utilities Taxes Auto Insurance Provincial Taxes Provincial Tax Income Gasoline Tax 2021 Intercity Comparison of Taxes and Utilities and Utilities Taxes of 2021 Intercity Comparison Income Total Family at $100,000 in Dollars) (Values Health Premiums Household Total Total Household Total Total Taxes Taxes Total Tax Credits and Credits and Tax Rebates Taxes Total 74 Budget 2021-22 the enactinglegislation,withtotalexpenditures sales taxbaseineachprovince wasidentifiedfrom Canada’s 2019SurveyofHouseholdSpending.The baskets atthetotalincomelevelsfrom Statistics Sales Tax isbaseduponaveragefamilyexpenditure insurance andmedicalservices. Health Premiums are annual premiums forhospital to reduce theimpactofsalestaxes. provincial incometaxcredits andrebates designed Tax Credits andRebates 16.5 percentabatementfrom federalincometax. Québec ChildCare ExpenseTax Credit andbythe personal incometaxhasbeenreduced bythe Insurance contributioncredits. Gross Québec Pension Plan/QuébecPlanandEmployment non-refundable credits usedincludetheCanada for twodependentchildren (ages6and12).Personal the familieseachclaim$3,000inchildcare expenses spouses ata60percentto40ratioandthat It isassumedthatfamilyincomeearnedbyboth income levelforeachrepresentative familysituation. Provincial IncomeTax sales taxesandmunicipalsurcharges. Tax,exclude federalGoodsandServices provincial certainty incitingutilitycosts.Thefigures methodology hasbeenchosenforthesakeof actual utilityratesforthe2020calendaryear. This insurance) represent acostcomparisonofthe (electricity, homeheating,telephoneandauto Household charges forthebasicutilityservices year usingknownchangesasofMarch 5,2021. Tax estimatesare calculatedforthe2021calendar TAXES AND UTILITIES–NOTES iscalculatedbasedonthe refer torefundable

consumption levelof2,800m Home Heatingcharges are basedonanannual applied tothepurchase ofgasoline. commissions aswellprovincial carbontaxes families. Figures includecharges leviedbytransit 1,000 litres byasingleperson,and2,000litres for Gasoline Tax isbasedonannualconsumptionof estimated basedontaxableexpenditures. patterns. Thesalestaxineachprovince wasthen adjusted toreflect Saskatchewanconsumption these jurisdictions. as SGInolongerhasaccesstorateinformationin St. John’s are unchangedfrom lastyear’s comparison, Montréal, SaintJohn,Halifax,Charlottetownand all applicablejurisdictions.Autoinsuranceratesfor Driver” discounts/rebates havebeenfactored infor 34 profiles to create thisindex.Theimpactsof“Good The Consumers’AssociationofCanadadeveloped driving record ataconsistent pointintime. had thesamecar, coverage,claimshistoryand what driverswouldpayineachjurisdictionifthey is basedontheactualinsuranceratesquotedfor by theConsumers’AssociationofCanada.Theindex developed bySGImodelledaftertheindex Auto Insuranceisbasedonacompositeindex individual residences. Telephone charges are ratesfor thebasicservice 8,100 kWhforhomeowners. consumption levelof4,584kWhforrenters and Electricity charges are basedonanannual the BTUequivalentconsumptionoffueloil. Charlottetown andSt.John’s, thefigures represent 3 ofnaturalgas.For

Budget 2021-22 75

9.7

(0.6)

42.4

36.0

10.9 36.0 37.5

(10.0)

(455.4)

(32.7)

(59.9) (11.1)

(26.1) (160.0)

(236.2)

230.5

100.0

(56.5)

(21.8) 179.7

(18.1)

Mid-Year

–

Change from

Third Quarter

(4.7)

561.2

98.8

376.1 36.0

432.7

447.0

50.2

113.9 17.3

(496.6)

185.7 36.0 37.5

(237.8)

Budget (59.9)

(26.3)

(26.1) (200.0)

(114.2)

–

–

Third

561.0

813.0 503.7

302.5 713.5 395.6

842.5 623.3

THIRD QUARTER

(1,864.8)

6,706.2 1,096.2 1,104.9

1,969.1

3,219.3

14,095.7

Quarter

3,379.2

6,362.0

1,464.2

15,960.5

Forecast

874.4

593.7

834.8 494.0

362.4 724.6 396.2

806.5 585.8 160.0

(100.0)

Mid-Year The $100.0 million revenue risk allowance included risk allowance revenue The $100.0 million quarter in the third removed at mid-year has been update. The budgeted $200.0 million forecast has been fully allocated and, expense contingency update. in the forecast also removed therefore,

(2,044.5)

Projection

7,161.6 1,053.8

1,933.1

3,229.3

14,152.2

3,397.3

6,351.1

1,490.3

16,196.7

–

997.4 728.8

798.8

762.8 389.8

362.4 718.2 421.9

806.5 585.8 200.0

7,202.8

1,933.1

2,786.6

3,361.9

6,176.3

1,490.3

Budget

(2,426.0)

13,648.7

16,074.7 2020-21 BUDGET UPDATE UPDATE BUDGET 2020-21

– THIRD QUARTER

(millions of dollars) Revenue Taxation Non-Renewable Resources Non-Renewable GBE Net Income Other Own-Source Revenue

Federal Transfers Federal Revenue Risk Allowance Revenue

Total Revenue Total

Expense Agriculture

Community Development Economic Development Education

Environment and Resources Natural Environment Financing Charges General Government General

Health

Protection of Persons and PropertyProtection of Persons Social Services and Assistance Transportation Health and Public Safety Contingency Safety Health and Public

Total Expense Total

Deficit 2020-21 BUDGET UPDATE 2020-21 BUDGET UPDATE At third quarter, a deficit of $1.9 billion is forecast, a of $1.9 billion is forecast, a deficit quarter, At third OVERVIEW budget, and of $561.2 million from total improvement $447.0 million increase to Revenue is forecast to decrease is forecast budget and expense from budget. $114.2 million from an improvement of $179.7 million since mid-year. of $179.7 an improvement 76 Budget 2021-22 to 0percent,effective October1,2020. of thesmallbusinessincometaxratereduction assessments forthe2019taxyearandimpact budget asaresult ofweaker-than-expected assessments. Inaddition,theforecast isdownfrom accruing asignificantliabilityrelated toprior-year budget. Thedecrease isprimarilyduetothecostof Corporate incometaxisdown$362.4millionfrom from budget. Taxation revenue isforecast todecrease $496.6 million Significant changesfrom budgetare describedbelow. partially offset bylowertaxationrevenue. and otherown-source revenue. Thesegainsare modest increases innon-renewable resource revenue Government BusinessEnterprises,aswellmore increases infederaltransfersandnetincomefrom The increase from budgetisduetosignificant at mid-year. from budget,and$56.5millionlowerthanexpected 2020-21, anincrease of$447.0million(3.3percent) Revenue isnowforecast tobe$14.1billionin REVENUE UPDATE 2020-21 NON-RENEWABLE RESOURCESFORECAST ASSUMPTIONS

WTI Oil Price (US$/barrel)WTI Oil Price

Light-Heavy Differential (% of WTI) Well-head (C$/barrel) Oil Price Oil Production (million barrels) Potash (mine netback, Price US$/KCl tonne) Potash (mine netback, Price C$/K

Potash Sales (million K Canadian Dollar (US cents)

1

2

The average price per barrel of Saskatchewan light, medium and heavy oil. heavy and medium light, Saskatchewan of barrel per price average The Ministry of Finance calculations derived from calendar-year forecasts. calendar-year from derived calculations Finance of Ministry

2

O tonnes)

1

2

2

O tonne)

2

2

434

188

Budget

30.00

21.00

146.0

71.00

40.0

13.9

Projection

Mid-Year increase isprimarilyduetoanincrease inWest Texas forecast tobe$187.2millionhigherthanbudget.The At third quarter, oilandnaturalgasrevenue is increase $98.8millionfrom budget. Non-renewable resources revenue expected economicactivitythisyear. from budget,respectively, reflecting stronger-than- are forecast tobeup$14.0 millionand$11.2 Liquor ConsumptionTax andCannabisExciseTax) Finally, Tobacco Tax andothertaxes(primarily OrganizationsService inthesummarybudget. on capitalpurchases by ministriesandGovernment accounting treatment thateliminatesthePSTpaid by a$59.9millionreduction asaresult ofanew quarter. However, thisincrease ismore thanoffset $35.0 millionincrease tothePSTforecast atthird economic performance thisyearhasresulted ina net $24.9millionfrom budget.Better-than-expected Provincial SalesTax (PST)isforecast tobedowna Renovation Tax Credit. implementation oftheSaskatchewanHome 2019 assessmentsandtheOctober1,2020 budget, primarilyduetoweaker-than-anticipated Personal incometaxisdown$140.4millionfrom

38.70

36.00

156.3

74.73

20.5

13.8

178 389

Forecast

Quarter

Third

42.27

39.05

154.0

75.70

18.1

14.0

180 390

Budget

(21.9)

12.27

18.05

4.70

(44)

8.0

0.1

Third Quarter

(8)

Change from

Mid-Year

isforecast to

3.57

3.05

0.97

(2.4)

(2.3)

0.2

2 1

Budget 2021-22 77

tonne), down from the budget tonne), down from O 2 $91.8 million increase in Saskatchewan $91.8 million increase Auto Fund net income (net of the policy holder rebate and enhanced auto injury benefits rebate announced on February 28, 2021), mostly to higher investment income; a quicker- related COVID-19 resulting from than-expected recovery premiums, from revenue in higher-than-expected financing and driver penalties, as registration well as lower claims expenses; in SaskPower net income, $64.1 million increase primarily due to an unbudgeted legal settlement and higher Saskatchewan electricity sales in all customer classes except commercial; in Saskatchewan Liquor $63.0 million increase and Gaming Authority net income, primarily from recovery due to a better-than-expected COVID-19 closures;

uranium price forecast. $5.8 million lower than land sales are Crown Finally, actual sales lower-than-expected budgeted, reflecting to is forecast Crowns all commercial net income from assumption of US$188 (C$434). assumption of US$188 including revenue, resources Other non-renewable and a lower on royalties Cigar Lake mine closures in 2020-21. net income Government Business Enterprise (GBE) budget as $376.1 million from to increase is forecast be higher than budget. the income reflects in GBE net This increase budget: following variances from • uranium, coal and other minerals, is forecast to uranium, coal and other minerals, is forecast is budget. The decrease from $31.1 million decrease impact of the mainly due to a larger-than-budgeted • prices in U.S. dollars and an increase in the in the and an increase prices in U.S. dollars now Prices are forecast. average exchange rate to average US$180 per KCl tonne forecast (C$390 per K Potash royalties are forecast to decrease $64.9 million to decrease forecast are Potash royalties realized budget, mainly due to lower average from •

quarter. at third barrels to increase is forecast revenue Surcharge Resource strengthened over the course of the fiscal year, course of the fiscal year, over the strengthened U.S. cents in April to an average of 71.1 from The exchange rate is 78.8 U.S. cents in February. in 2020-21, now expected to average 75.7 U.S. cents higher oil prices as a higher Canadian gains from in lower well-head prices in Canadian dollar results of $21.00. to increase is forecast In addition, oil production million at budget to 154.0 146.0 million barrels from a budget, primarily reflecting $13.4 million from Overall, the result of these forecast changes is a changes is of these forecast Overall, the result in Canadian dollars of well-head price forecast forecast the budget up $18.05 from $39.05 per barrel, from U.S. refineries. A narrower light-heavy oil A narrower U.S. refineries. from all else equal. Saskatchewan and higher oil revenue, also The value of the Canadian dollar has the budget assumption of up 4.7 U.S. cents from some of the offsets 71.0 U.S. cents. This increase dollars and lower oil revenue. by offset for oil sales values, partially higher forecast for potash sales values. a lower forecast prices are now forecast to average US$42.27 per to now forecast prices are to the budget in 2020-21, compared barrel the budget points from of 21.9 percentage decrease Western assumption of 40.0 per cent, reflecting demand Canadian heavy crude shut-ins and increased prices in in higher well-head results differential increasing from a monthly average of US$16.70 in a monthly from increasing WTI oil As a result, in February. April to US$59.06 assumption of US$30.00 per barrel. (as a per cent of WTI) The light-heavy differential 2020-21, a is expected to average 18.1 per cent in WTI oil prices have steadily recovered this fiscal year, steadily recovered WTI oil prices have partially offset by a higher average exchange rate by a higher average exchange offset partially forecast. oil differential and a forecast increase in production, increase and a forecast oil differential Intermediate (WTI) oil prices, a narrower light-heavy oil prices, a narrower Intermediate (WTI) 78 Budget 2021-22 • sinking fundearnings. $14.0 million,mainlydueto higher-than-budgeted Investment incomeisforecast toincrease from budget. fees revenue explainsthemajorityofvariances health-sector revenues from miscellaneousrevenue to to decrease $78.0 million.Areclassification ofcertain from budget, whilemiscellaneousrevenue isforecast Fees revenue isforecast toincrease $88.8million $36.0 millionfrom budget. Other own-source revenue • • • • expected pandemicrecovery; premium revenue asaresult ofaquicker-than- related tohigherinvestmentincomeand Government Insurancenetincome,mostly $54.6 millionincrease inSaskatchewan $4.2 millionnetincrease across allotherentities. Casinos ReginaandMooseJawwere open;and, period (July9,2020toDecember18,2020)that than-anticipated results realized duringthe net lossatthird quarter, primarilyduetobetter- $22.4 millionnetlossatbudgettoa$7.1 Gaming Corporationresults, from a $15.3 millionimprovement inSaskatchewan depreciation expense; gas prices,alongwithloweroperatingand colder-than-normal weatherandhighernatural mostly duetohigherrevenue resulting from $38.9 millionincrease inSaskEnergy netincome, protocols); pandemic (workfrom homeandsafety and one-timeequipmentsalesdrivenbythe increase innetworkandconnectivityusage, teleconferencing witharesultant services of managedvideoconferencing and and devicerevenue, increased businessuse mainly duetostrong wireless accessgrowth $44.2 millionincrease inSaskTel netincome, isforecast toincrease

removed asthefiscalyearcomestoaclose. the secondhalfoffiscalyear hasnowbeen potential COVID-related revenue deteriorationover included inthemid-yearreport tocushionagainst Finally, the $100.0 millionrevenue riskallowance federal populationestimates. $1.9 millionfrom budget,respectively, duetorevised Canada SocialTransfer are down$5.4millionand year. Inaddition,theCanadaHealth Transfer and projects are expectedtobecompletedthisfiscal for theAcceleratedSiteClosure Program asfewer in thenexttwofiscalyearsratherthan2020-21 decrease infederalfundingthatwillberecognized These increases are partially offset bya$50.0million • • • • • the followingincreases: to increase $432.7millionfrom budgetandincludes Transfers from thefederalgovernment forecast toincrease $4.6millionfrom budget. Program, whiletransfersfrom othergovernmentsare producer premiums fortheLivestockPriceInsurance from budget,mainlyduetohigher-than-budgeted Insurance revenue isforecast toincrease $6.6million Development Agreement top-upfunding. and Career Training forone-timeWorkforce $17.1 millionattheMinistryofImmigration recorded in2019-20); and, $20.3 millionpaymentthatwasreceived and to fiscalyear2016-17(inadditiontheinitial the federalFiscalStabilizationProgram related $18.6 millionforSaskatchewan’s claimunder in AgriStabilityprogram payments; Insurance Corporation,mainlyduetoanincrease $20.1 millionattheSaskatchewanCrop federal SafeReturntoClassFund; $74.9 millionforSaskatchewan’s share ofthe federal SafeRestart Agreement; $338.1 millionforSaskatchewan’s share ofthe

are forecast

Budget 2021-22 79

is down

is down $26.1 million expense and reduced spending under the national expense and reduced housing strategy, partially offset by unbudgeted offset partially housing strategy, COVID-related expenses, primarily costs for the hotel COVID-related for children and safety measures isolation program coming into care. is up $17.3 million from budget, reflecting from Education is up $17.3 million and federal in provincial an $84.2 million increase school of the K-12 re-opening funding for the safe funding of safe restart system and $20.7 million in pension by a $38.3 million decrease offset partially in actuarial assumptions, a expense due to changes did not as school divisions $37.4 million decrease due reserves level of restricted utilize the anticipated earlier in the to the impacts of COVID-19 closures and in provincial year and a $6.5 million decrease allowances. training apprenticeship noted In addition to the $84.2 million of funding funding above, another $20.7 million of provincial provided to the child-care sector. These increases are These increases sector. to the child-care provided divisions to be used to school has been provided to COVID-19. next year to continue responding When combined with $40.0 million of school When combined with $40.0 million of costs funded division spending on COVID-related and $10.0 million of savings prior-year from a total of asset purchases, capital COVID-related $154.9 million has been invested in the Saskatchewan Safe Schools Plan. is down $237.8 million, primarily due Agriculture of indemnities as a result insurance to lower crop conditions. favourable crop and Natural Resources Environment $59.9 million, mainly due to lower activity in the Accelerated Site Closure Program in 2020-21 and in 2020-21 Program Accelerated Site Closure into the next two fiscal years. a shift of projects Social Services and Assistance income assistance due to lower-than-budgeted

is up

is up $50.2 million, is up $113.9 million, largely $16.0 billion in 2020-21, a decrease of $114.2 million of $114.2 a decrease $16.0 billion in 2020-21, the health across pressures additional COVID-related system, including compensation and personal and other as well as cohorting equipment, protective homes. care at long-term measures Economic Development EXPENSE UPDATE nearly to be is forecast expense quarter, At third million budget and a $236.2 (0.7 per cent) from in expense Major changes since mid-year. decrease below. described budget are themes from budget reflecting from Health is up $185.7 million Protection of Persons and Property Protection COVID-related $36.0 million, mainly due to increased Policing and expense at the Ministry of Corrections, the Ministry of Justice and Attorney Public Safety, General and the Saskatchewan Public Safety Agency. rebate program. The forecast update also includes The forecast program. rebate of the the rest across a net $28.7 million increase support theme, primarily for unbudgeted COVID-19 Saskatchewan Tourism including the programs, by offset by federal transfers), partially is fully offset additional funding for the Rural Integrated Roads for and the Urban Highway Connector programs. Growth reflecting $70.3 million for the municipal portion of for the municipal portion $70.3 million reflecting reflecting $85.2 million for the SaskPower customer $85.2 million reflecting the extension of the Small Program, Sector Support and grants Payment Program Business Emergency Hockey League and the the Western to support Saskatchewan Junior Hockey League. Community Development (which Agreement Restart Safe the federal-provincial lower expense at several entities due to the deferral impacts. and COVID-related of projects due to is up $37.5 million, largely Transportation winter maintenance costs and higher-than-budgeted 80 Budget 2021-22 • • as follows: public safetycontingencyhasbeenfullyallocated Finally, the$200.0millionbudgetedhealthand rates, partially offset byhigherpensionexpense. budget, mainlyduetolower-than-budgeted interest Financing Charges protocols fortheprovincial election. Electoral Officer toimplementCOVID-19safety offset bya$5.5millionincrease fortheChief in publicemployees’dentalplanclaims,partially in actuarialassumptions,anda$6.7milliondecrease decrease inpensionexpense,largely duetochanges from budget.Thedecrease includesa$24.9million General Government $40.0 millionfortheSafeSchoolsPlan; COVID pressures; $75.6 millionforSaskatchewanHealthAuthority are down$4.7millionfrom expenseisdown$26.3million

• • • • • • • • • $0.5 millionforConexusArts Centre support. Dental Labrenovations; and, $1.8 millionforSaskatchewanPolytechnic $3.2 millionforCourtenhancements; Service $5.5 millionfortheChiefElectoralOfficer; $9.9 millionforCustodyServices; $12.3 millionforPublicSafetyresponse; $14.2 millionforMunicipalGrantsGrowth; $17.0 millionforTourism supports; Business Emergency PaymentProgram; $20.0 millionfortheSaskatchewanSmall

SASKATCHEWAN PROVINCIAL BUDGET 21-22

BUDGET FINANCIAL TABLES 82 Budget 2021-22 For the Year EndedMarch31 Budget GOVERNMENT OFSASKATCHEWAN Transportation Social servicesandassistance Protection ofpersonsandproperty Health General government Financing charges Environment andnaturalresources Education Economic development Community development

Other own-sourcerevenue Net incomefromgovernmentbusinessenterprises Non-renewable resources 1 Totals maynotaddduetorounding. Deficit Total Expense Health andpublicsafetycontingency Agriculture Expense Total Revenue Transfers fromthefederalgovernment Taxation Revenue

The 2020-21 budgeted health and public safety contingency has been reported in the 2020-21 forecast within the applicable expense themes. The 2020-21budgetedhealthandpublicsafetycontingencyhasbeenreported inthe2020-21forecastwithinapplicableexpense

1

17,089.2 14,478.3 (2,610.9) 2021-22 Budget 1,556.7 6,535.3 3,753.2 1,328.5 2,104.1 2,908.5 7,238.0 607.7 845.1 524.6 755.0 414.9 527.0 690.4 879.3 899.2 –

Forecast 15,960.5 14,095.7 (1,864.8) 2020-21 1,464.2 6,362.0 3,379.2 1,096.2 1,969.1 1,104.9 3,219.3 6,706.2 623.3 842.5 395.6 713.5 302.5 503.7 813.0 561.0

– (millions ofdollars)

16,074.7 13,648.7 (2,426.0) 2020-21 Budget 1,490.3 6,176.3 3,361.9 1,933.1 2,786.6 7,202.8 585.8 806.5 421.9 718.2 362.4 389.8 762.8 798.8 200.0 997.4 728.8

Budget 2021-22 83

637.3 (191.3) Budget Budget (2,426.0) (1,044.2) (2,832.9) 2020-21 (2,426.0) (2,617.3) 2020-21 (12,288.9) (15,121.8)

1

(millions of dollars) (millions of dollars) 630.2 (988.8) (229.8) 2020-21 (1,864.8) (2,223.4) (1,864.8) (2,094.6) 2020-21 Forecast (12,288.9) (14,512.3) Forecast

For the Year Ended March 31 Ended March Year For the For the Year Ended March 31 Year For the 628.1 Budget Budget Statement of Change in Net Debt Statement of Change in Net 2021-22 (1,089.9) (2,610.9) (3,072.7) 2021-22 (2,094.6) (2,610.9) (4,705.5) Statement of Accumulated Deficit Accumulated Statement of (14,512.3) (17,585.0)

1

GOVERNMENT OF SASKATCHEWAN GOVERNMENT GOVERNMENT OF SASKATCHEWAN OF GOVERNMENT

Includes disposals and adjustments. Accumulated deficit as at March 31, 2020, as reported in the 2019-20 Summary Financial Statements, increased by $38.5 million toAccumulated deficit as at March 31, 2020, as reported remove provincial sales tax on capital assets.

Acquisition of government service organization capital assets Deficit Increase in Net Debt 1 Amortization of government service organization capital assets Net debt, beginning of year Year Net Debt, End of may not add due to rounding. Totals

Accumulated deficit, beginning of year

Accumulated Deficit, End of Year Accumulated Deficit, End of may not add due to rounding. Totals 1 Deficit 84 Budget 2021-22 Government business

4 3 2 1 Totals maynotaddduetorounding. Total Capital Assets enterprises organizations Government service

As atMarch31 Schedule ofCapital Assets GOVERNMENT OFSASKATCHEWAN 1 Totals maynotaddduetorounding. Pension Liabilities,Endof Year Adjustment toaccountforpensioncostsonanaccrualbasis Pension liabilities,beginningofyear As atMarch31 Schedule ofPensionLiabilities GOVERNMENT OFSASKATCHEWAN

Net bookvalueas at March31,2020,asreportedinthe 2019-20SummaryFinancialStatements. capitalized provincialsalestax. Net bookvalueasatMarch31,2020, asreportedinthe2019-20 Includes disposalsandadjustments. are expensed. entity Includes onlycapitalassetsacquired by governmententities.Capitaltransfersprovidedtoentitiesoutsidethe reporting Pension liabilitiesasatMarch31,2020,reportedinthe2019-20

Net Book March 31 27,544.2 15,723.9 11,820.3

Value 2020

4 3

Additions – 2020-21Forecast 1,330.3 2,319.1

988.8 1

Amortization Summary FinancialStatements, Summary FinancialStatements (1,522.3) (630.2) (892.1)

2

Net Book March 31 Forecast 12,178.9 16,162.1 28,341.0

Value 2021 2021-22 Budget 6,573.5 6,473.7 (99.8)

decreased by$38.5milliontoremove Additions .

1,089.9 1,574.3 2,664.2

– 2021-22Budget

1

Forecast 2020-21 7,152.3 6,573.5 Amortization (578.8)

(1,572.4) (millions ofdollars) (millions ofdollars) (628.1) (944.3) 1

2

Net Book March 31 2020-21 12,640.7 16,792.1 29,432.8 Budget 7,152.3 6,637.8 Budget (514.5) Value 2022

Budget 2021-22 85

2

9.6

3.9

0.8

15.0

39.8

75.5

52.3

20.0

94.2

79.4

Debt

201.4

144.1

Public

7,300.0 6,691.4

6,652.8

1,275.1 1,714.7

Budget

2020-21

14,336.6

10,032.6

24,369.2

2

9.6

5.0 3.9

0.2

44.2

76.0

50.1

20.0

94.8

78.7

Debt

236.2

145.5

Public

(millions of dollars)

7,200.0 6,690.0

6,127.5

1,214.9 1,600.4

9,357.5

2020-21 As at March 31

14,239.3

23,596.8

Forecast

2

9.6

5.0 3.4

0.1

40.2

59.7

49.3

14.3

89.8

80.9

Debt

243.8

136.9

Public

9,400.0 8,142.0

6,413.2

1,335.3 1,742.9

9,910.9

Budget

2021-22

17,855.4

27,766.3 Schedule of Public Debt Schedule of Public

– – – –

– –

– – – –

–

5.0

89.8

80.9

GBE

Debt

152.7

6,329.7

1,335.3 1,680.3

9,673.7 9,673.7

Budget

2021-22

Specific

1

9.6

– 3.4

–

– –

0.1

91.1

40.2

59.7

49.3

14.3

83.5

62.6

Debt

136.9

237.2

9,400.0 8,142.0

Budget

2021-22

General

17,855.4

18,092.6

4

3

GOVERNMENT OF SASKATCHEWAN OF GOVERNMENT

– Saskatchewan Capital Plan consists of amounts borrowed by the General Revenue Fund to finance investment

– Operating – Saskatchewan Capital Plan

General debt is issued by GSOs and includes issued amounts subsequently transferred to GBEs. Public debt is shown net of sinking funds. General Revenue Fund in capital assets. GBE debt includes both general debt and GBE-specific debt. General debt of GBEs is the amount transferred from the General Revenue Fund to or a GBEspecifically and recorded on asbehalf a loan receivable in the Summary Financial Statements. GBE-specific debt is debt issued by, of, GBEs. GBE-specific debt is included in “Investment in government business enterprises” in the Summary Financial Statements.

Government Service Organization (GSO) Debt General Revenue Fund

Boards of Education Global Transportation Hub Authority Hub Global Transportation

Health Sector Affiliates Health Sector Saskatchewan Health Authority Saskatchewan Health

Other Saskatchewan Opportunities Corporation Government Service Organization Debt Water Security Agency Security Water Government Business Enterprise (GBE) Debt Municipal Financing Corporation of Saskatchewan Saskatchewan Gaming Corporation Saskatchewan Liquor and Gaming Authority Saskatchewan Liquor and Gaming

Saskatchewan Power Corporation Saskatchewan Telecommunications Holding Corporation Saskatchewan Water Corporation Saskatchewan Water SaskEnergy Incorporated

Government Business Enterprise Debt

Total

Guaranteed Debt

Totals may not add due to rounding. Totals

1

2

3

4 86 Budget 2021-22 Saskatchewan Workers' Compensation Board SaskEnergy Incorporated Tobacco Provincial sales Saskatchewan Water Corporation Saskatchewan Telecommunications HoldingCorporation Property Saskatchewan PowerCorporation Individual income Saskatchewan LiquorandGaming Authority Saskatchewan GovernmentInsurance Resource surcharge Fuel Other Own-SourceRevenue Net IncomefromGovernmentBusinessEnterprises Transfers fromothergovernments Investment Income Saskatchewan GamingCorporation Potash Insurance Totals maynotadddueto rounding. Total Revenue Total Transfers fromtheFederal Government Other Canada Social Transfer Canada Health Transfer Transfers fromtheFederalGovernment Total Own-Source Total OtherOwn-SourceRevenue Miscellaneous Fees Total NetIncomefromGovernmentBusinessEnterprises Consolidation adjustments Fund Saskatchewan Auto Municipal FinancingCorporationofSaskatchewan Total Non-RenewableResources Other Oil andnaturalgas Crown landsales Non-Renewable Resources Total Taxation Other Corporation income Taxation Own-Source

For the Year EndedMarch31 Schedule ofRevenue GOVERNMENT OFSASKATCHEWAN

2021-22 Budget 14,478.3 11,569.8 1,328.5 2,908.5 7,238.0 2,104.1 2,144.0 2,420.8 1,170.0 1,100.7 1,330.4 899.2 201.8 100.0 784.8 302.6 423.4 477.9 431.8 477.4 754.6 282.7 454.1 489.8 192.1 505.1 49.7 16.7 40.0 73.2 88.4 59.0 79.8 11.5 (1.3) 7.0 1.1 9.2

Forecast 2020-21 10,876.4 14,095.7 1,104.9 1,096.2 3,219.3 6,706.2 1,969.1 1,971.1 2,465.0 1,131.8 1,457.6 1,296.5 201.7 126.0 773.0 136.4 265.8 326.6 444.0 135.8 404.5 465.2 418.5 284.2 432.9 356.6 213.0 362.3 119.7 111.1 58.9 76.8 56.9 (7.1) (5.6)

8.6 1.2 6.7 (millions ofdollars)

2020-21 Budget 10,862.1 13,648.7 2,786.6 7,202.8 1,933.1 1,996.0 2,605.4 1,043.0 1,017.6 1,301.9 728.8 997.4 187.7 102.4 767.1 252.4 263.6 444.0 469.4 467.1 780.9 277.6 105.7 421.7 434.6 121.2 175.1 (22.4) 20.0 81.8 72.3 81.2 72.2 12.5 88.0 6.2 1.0 1.5

Budget 2021-22 87

debt of others that the

Glossary of Financial Terms Glossary of Financial

debt issued by GBEs; or debt issued by the General Revenue Fund (GRF) specifically on behalf of a GBE where the the government expects to realize the GBE and settle the from receivable external debt simultaneously. borrowings through the issuance of through Debt: borrowings Gross General Debt: public debt net of loans to Crown debt instruments such as promissory notes and debt instruments such as promissory debentures. Sinking Funds: funds set aside for the repayment of debt. funds. debt net of sinking Public Debt: gross corporations for Government Business Enterprise - - Guaranteed Debt: if the others to repay government has agreed (GBE) specific debt. GBE-Specific Debt: default. Deficit for a The amount by which expense exceeds revenue fiscal period. with amounts for other GSOs and partnerships. Inter- with amounts for other GSOs and partnerships. eliminated. entity balances and transactions are Debt the issuance of debt through Obligations incurred liabilities instruments. Debt does not include other such as accounts payable or pension obligations. debt include: used to describe Terms • • Consolidation account for government serviceThe method used to of the (GSOs). Financial accounts organizations basis of accounting adjusted to the GSOs are described in note 1 of the Summary Financial combined are Statements and the adjusted amounts • • • •

GOVERNMENT OF SASKATCHEWAN OF GOVERNMENT

entity. entity. activities of all entities in the government reporting An asset with physical substance that has an revenue or expense over a period. Capital assets or expense over revenue to expense over their expected amortized are and extent of the planned financial the full nature Capital Asset to be economic life extending beyond one year, used on a continuing basis and not for sale in the Budget for main financial plan that accounts Government’s Amortization of allocating an amount to The systematic process Actuarial gains and economic lives. remaining losses, such as those experienced by pension plans, to financial instruments amounts relating and certain also amortized. are course of operations. ordinary Accumulated Surplus has exceeded The amount by which revenue of provincial the beginning expense from The amount by which expense has exceeded The amount by which of provincial the beginning from revenue Accumulated Deficit Accumulated Deficit that incorporation (1905), plus any adjustments the accumulated deficit. It to directly charged were between total assets is calculated as the difference and liabilities. that incorporation (1905), plus any adjustments the accumulated surplus. to directly charged were between total assets It is calculated as the difference and liabilities. Financing Charges Net Debt Costs associated with general debt, pension liabilities, The difference between liabilities and financial assets. obligations under long-term financing arrangements Net debt represents the future revenue required to such as public-private partnerships (P3s) and capital pay for past transactions or events. lease obligations. Financing charges include interest, foreign exchange gains and losses, discounts, fees Partnership and commissions. A contractual arrangement between the government and one or more partners outside the government General Revenue Fund (GRF) reporting entity where the partners share, on The primary operational account for the government an equitable basis, the risks and benefits of the through which all provincial monies under the direct arrangement. Partnerships are proportionately authority of the Legislative Assembly are collected consolidated in the Budget. and disbursed. The GRF is a GSO and is included in the government reporting entity. Pension Liability An actuarial estimate of discounted future payments Government Business Enterprise (GBE) to be made to retirees under government pension An entity that is controlled by the government, is plans, net of plan assets. self-sufficient and has the financial and operating authority to sell goods and services to individuals Proportionate Consolidation and organizations outside the government reporting The method used to account for partnerships. entity as its principal activity. GBEs are recorded in Financial accounts of the partnership are adjusted the Budget using the modified equity method. to the basis of accounting described in note 1 of the Summary Financial Statements and the government’s Government Reporting Entity proportionate share of the adjusted amounts is The set of entities that are either controlled by combined with amounts for GSOs and other government (GSOs and GBEs) or subject to shared partnerships. Inter-entity balances and transactions control (partnerships). are eliminated.

Government Service Organization (GSO) Public Private Partnership (P3) An entity that is controlled by the government, A partnership arrangement in the form of a long-term except those designated as GBEs or partnerships. performance-based agreement between the public GSOs are consolidated in the Budget. sector and the private sector to deliver public infrastructure. The liabilities arising from P3 Modified Equity arrangements are classified as obligations under long- The method used to account for GBEs. The term financing arrangements. government’s share of GBE net earnings or losses is included in budgeted revenue. The government’s Surplus investment, which is originally recorded at cost, The amount by which revenue exceeds expense for is adjusted annually to include the net earnings a fiscal period. or losses and other net equity changes of the GBE.

Budget 2021-22 88 For more information on Budget Basics, visit www.saskatchewan.ca/budget.