Our Plan for 2003-04
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2003 - 04 SASKATCHEWAN Provincial Budget BUILDING FOR THE FUTURE Our Plan for 2003 - 04 SASKATCHEWAN The Hon. Jim Melenchuk Minister of Finance Introduction The Government’s plan and budget for 2003-04 is This document provides an overview of the key the result of a comprehensive departmental initiatives planned for the coming year. More planning and budget process over the past nine detailed information about these and other months. This plan and budget are part of important initiatives will be published later this continuing efforts to support a managing-for- year in department annual reports that will report results approach within government. Preparing on 2002-03 activities and present plans for plans, tracking progress and reporting back will 2003-04. Department plans will also include lead to more and better information for managers performance measures and baseline data to help and decision-makers, enhanced accountability to the public monitor and evaluate the government’s the public and, ultimately, improved government progress over time in achieving its stated performance and a better quality of life for priorities. Saskatchewan people. Departments will report back on actual results The Government’s plan for 2003-04 touches upon compared to their plans in 2003-04 Annual past accomplishments and highlights key Reports, which will be released in July 2004. initiatives planned over the coming year in Information gathered through the reporting support of four overriding themes: process will be used to continually re-evaluate the priorities and initiatives outlined in department • A prosperous and competitive economy plans. • Strong and vibrant communities • Healthy and self-reliant families Please note: The Action Plan initiatives on the • Opportunities for youth following pages include a department reference at the end of each, indicating which area of A fifth theme, “Modern and Competitive Government is responsible for that particular Infrastructure,” emphasizing improvements to action. highways, water and sewer, schools and hospitals, etc., is woven throughout this document in support of the four themes listed above. 1 A Prosperous and Competitive Economy one of the most competitive places to do business. Our government’s plan to expand and diversify Of the nine countries surveyed, Canada was the our economy includes increasing investor most competitive overall. Among all major cities awareness of the opportunities for business and in the North American midwest, Saskatoon was industry development in Saskatchewan. ranked the second most competitive and [2003 Throne Speech] Saskatchewan’s four largest cities – Saskatoon, Regina, Prince Albert and Moose Jaw – all ranked Despite difficult global economic conditions over better than the Canadian average. 2001 and 2002, and two consecutive years of drought in Saskatchewan, our economy is A key means of continuing to attract investment performing well. Steady, positive economic and jobs is the Premier’s Investment Attraction growth is projected in 2003 and beyond fueled by Council, an internal body of ministers and senior both our traditional strengths and emerging new officials established to ensure that government industries. departments, agencies and Crown corporations work together in support of economic The following section identifies some key development. The Council has been instrumental initiatives planned for the coming year that will in developing the ethanol strategy, the increase our global competitiveness, ensure good Saskatchewan Immigrant Nominee Program, the working conditions for Saskatchewan people, oil and gas royalty restructuring, a beef encourage innovation and development of new development strategy, an action plan on technologies, support our agricultural sector and procurement and the Action Plan for Agro- expand the northern economy. Forestry. Another key ongoing initiative is the Our Future Maintain a Positive Business Climate to is Wide Open campaign, part of the Support Investment and Job Creation Government’s ongoing commitment to improved We continue to see the momentum of an economy attitudes about the province and promote business that is diversified and growing. Our strong, and investment in Saskatchewan. competitive business climate is resulting in more prosperity for our businesses and more jobs for We want to let everyone know that Saskatchewan people. The 2003-04 Budget builds Saskatchewan is brimming with possibility, on our success to date and will help to maintain a promise and prospects. positive climate for investment and jobs. [Premier Lorne Calvert, January 2003] The January 2002 KPMG Competitive Alternatives study confirmed that Saskatchewan is 2 Action Plan for 2003-04 ~ A 10-year royalty holiday for new precious • Further improve business tax competitiveness and base metal mines by expanding the incremental Corporation ~ Development of a competitive royalty and tax Capital Tax exemption, originally introduced in regime for diamond mining the 2002-03 Budget, from $5 million to ~ A rebate of the tax on fuel used to generate $7.5 million effective January 1, 2004 and to power in remote locations and for off-road $10 million effective January 1, 2005 for mineral exploration Saskatchewan-based businesses, to achieve an aggregate exemption level of up to $20 million. ~ Incentives to encourage grassroots mineral About 100 corporations will be removed from exploration by individual prospectors and the tax rolls, while other Saskatchewan-based exploration companies businesses will see a reduction in their ~ Enhanced airborne geophysical surveys Corporation Capital Tax of up to $30,000 per [Industry and Resources] year. Saskatchewan has the highest Corporation • Continue to work with First Nations and the Capital Tax exemption level of the nine federal government in meeting Treaty Land provinces with a corporate capital tax [Finance] Entitlement obligations. Government has • Continue to improve the competitiveness of facilitated the transfer of more than 470,000 Saskatchewan small business corporations by acres of land to Saskatchewan First Nations lowering the small business corporate income since 1992. This land base is the core of long- tax rate from six per cent to 5.5 per cent term economic development opportunities for effective January 1, 2004 and to five per cent Saskatchewan First Nations [Government effective January 1, 2005. Since 1991, the small Relations and Aboriginal Affairs] business income tax rate has been reduced by • Promote development of the ethanol industry one-half and increased the level of income to through the Greenprint for Ethanol Production which this rate applies from $200,000 to released in March 2002. The Ethanol Fuel Act, $300,000 [Finance] proclaimed in July 2002, provides a legal • Continue efforts to maintain a competitive framework to mandate an ethanol blend in fiscal environment to stimulate increased oil gasoline sold in Saskatchewan. Saskatchewan and gas exploration and development activity. fuel distributors will be required to ensure that Major changes to oil and gas royalties and taxes there is a five per cent average ethanol content were announced in October 2002. The changes in all Saskatchewan gasoline distributed in the included lower royalty and tax structures, new province, beginning April 1, 2004. The volume incentives and a reduced Corporation percentage requirement increases to Capital Tax Surcharge rate for production from 7.5 per cent January 1, 2005. Government will new wells and projects effective spend an estimated $3.36 million in 2003-04, October 1, 2002 [Industry and Resources] increasing to $15.2 million in 2004-05, to • Implement year two of the six-year, provide a 15 cent per litre grant to those fuel $12.6 million Saskatchewan Mineral distributors who purchase their ethanol from Exploration Incentive Program, announced in Saskatchewan producers [Industry and September 2002. In 2003-04, the program will Resources] cost $2.1 million and includes: 3 • The Aboriginal Employment Development Saskatchewan and the map-based technology Program (AEDP) strives to build a workforce in provides quick access to accurate, local and Saskatchewan where Aboriginal people regional data which helps investors and site compete for jobs based on their skills and selectors looking to establish new businesses in qualifications, and where they have Saskatchewan [Industry and Resources] representation at all occupational levels in • Saskatchewan Finance introduced the proportion to their population numbers in the Saskatchewan Electronic Tax Service (SETS) province. To date, under this Program, in 2001-02, offering businesses a secure, fast and employers have hired more than 1,500 qualified convenient alternative to filing tax returns in Aboriginal people. In 2003-04: paper format (www.gov.sk.ca/finance/revenue/efile/). ~ Eight new partnership agreements will be In January 2003, SETS was simplified by signed with employer organizations allowing businesses to submit a return using an ~ The number of Aboriginal people hired in access code rather than having to fully register partnership organizations will increase by for the service. Beginning in 2003-04, inter- 10 per cent, from 1,500 in 2002-03 to 1,650 jurisdictional truckers belonging to the in 2003-04 International Fuel Tax Agreement will be able to file returns and pay taxes and fees using ~ The number of people receiving Aboriginal SETS [Finance] cultural awareness education in partnership organizations will increase by 30 per cent • Saskatchewan