The Honourable Ken Krawetz Deputy Premier Minister of Finance

SASKATCHEWAN PROVINCIAL BUDGET 12-13 KEEPING THE SASKATCHEWAN ADVANTAGE

BUDGET SUMMARY

MiniSter’S MeSSage

I’m pleased to table the 2012-13 Budget and supporting documents for public discussion and review.

Over the past few years, Saskatchewan people have helped to create the “Saskatchewan Advantage,” a combination of balanced budgets, reduced debt and lower taxes, a strong and growing economy and the tremendous quality of life we all enjoy.

Our province is now the best place in Canada to live, work, start a business, receive an education, raise a family and build a life.

Saskatchewan has become a magnet for people across the country and around the world, recording the largest population growth in any census period since Statistics Canada started doing the census every five years in 1956.

People are coming here because they recognize that Saskatchewan is now a place of opportunity.

Keeping the SaSKatchewan advantage The 2012-13 Budget is all about “Keeping the Saskatchewan Advantage.”

While other jurisdictions post deficits, Saskatchewan will once again balance its budget.

While other provinces struggle with sluggish growth, Saskatchewan is projected to lead the nation in economic growth.

Even in a time of global uncertainty, our government’s focus will remain squarely on enhancing and preserving Saskatchewan’s quality of life through prudent fiscal management.

This year’s budget also strives to make life more affordable and provide better access to health care.

This budget provides for enhancements to the Active Families Benefit, as well as for the introduction of a Saskatchewan Advantage scholarship and a Saskatchewan Advantage grant for education savings.

In health care, we’re investing $50 million in the Saskatchewan Surgical Initiative and providing a 3.5 per cent funding increase for Regional Health Authorities. We’re also improving primary health care and establishing a new rural doctor locum pool. And we’re committing $4 million to expand the colorectal screening program province-wide, providing a valuable early detection tool to Saskatchewan people. Our province’s enhanced population growth has created challenges in some communities for people who require housing.

Last year, we introduced a five-point plan to increase the supply of affordable housing, which helped a great deal.

We’re building on that success in this budget with several new initiatives.

The First-Time Homebuyers Tax Credit will provide eligible Saskatchewan residents with a non-refundable credit of up to $1,100 on their income tax.

We’re also creating an innovative tax incentive for the private sector to invest in new multi-unit residential rental projects in our province.

Keeping our proMiSeS This budget is also about keeping promises. In last fall’s provincial election campaign, we made a commitment to continue balancing the budget and sustaining programs while remaining fiscally responsible. We also promised to improve the quality of life for people across Saskatchewan.

With this budget, we’re introducing the Seniors Personal Care Home Benefit. We’re increasing benefits in both the Seniors Income Plan and Saskatchewan Assured Income for Disability programs.

We’re increasing funding for the treatment of autism. We’re creating 500 new child care spaces. And we’re providing for an array of other initiatives aimed at enhancing the quality of life of seniors, families, children, and every other citizen of our province.

Saskatchewan people have worked hard over the past few years to establish the Saskatchewan Advantage.

Our government intends to do everything we can in the years ahead to keep it.

Honourable Ken Krawetz Minister of Finance table of contentS

MiniSter’S MeSSage governMent direction for 2012-13 ...... 6 technical paperS The Saskatchewan Economy ...... 25 General Revenue Fund Financial Outlook ...... 35 General Revenue Fund 2011-12 Financial Update ...... 48 Saskatchewan’s Tax Expenditures ...... 49 2012 Intercity Comparison of Taxes, Utilities and Housing ...... 53 2012-13 Borrowing and Debt ...... 59 Growth and Financial Security Fund ...... 64 Debt Retirement Fund ...... 65 2012-13 Housing Initiatives ...... 66 2012-13 Revenue Initiatives ...... 70 general revenue fund (grf) financial tableS GRF – Statement of Operations and Accumulated Deficit ...... 74 GRF – Statement of Change in Net Debt ...... 74 GRF – Statement of Cash Flow ...... 75 GRF – Schedule of Revenue ...... 76 GRF – Schedule of Expense ...... 77 GRF – Schedule of Borrowing Requirements ...... 78 GRF – Schedule of Debt ...... 79 GRF – Schedule of Guaranteed Debt ...... 80

SuMMary financial StateMent (SfS) financial tableS Summary Statement of Surplus ...... 82 Summary Statement of Accumulated Surplus ...... 83 Summary Statement of Change in Net Debt ...... 84 Summary Schedule of Pension Liabilities ...... 84 Summary Schedule of Tangible Capital Assets ...... 85 Summary Schedule of Debt ...... 86 Notes to the Summary Financial Budget ...... 87

SaSKatchewan provincial budget 12-13 governMent direction for 2012-13 6 Budget 2012-13 | Budget Summary improvinginfrastructurethe thatpromotes economic educationin innovation.andabout further is It Thisbudgetaboutbuildingisstrengthsour on fiscalmanagement. servicesandremain sustainable through disciplined socialandservices, while ensuring programs all improvementsprogramskeyto health, ineducation Thisprovides opportunitywiththeus maketo history. growthopportunitiesand unprecedented ourin Weare“have”provincea withrecord population provincialfinancesgrowinga and economy. Saskatchewanleadingwithsoundiswaythe sloweconomic growth, growing deficits,debtand timewhenotherjurisdictionsa At struggle with arehallmarkstheSaskatchewanthe of Advantage. growthunparalleledanand qualitylife.Thoseof Thatmeansbalanced budgets, strong economic family.a countrylive,raisetheworkandbestplacetothein renewedmandatecontinueto making thisprovince 2011,governmentthefallofthe In given wasa growth.aboutcaringvulnerable.istheforIt : 3 1 - 2 1 0 2 r o f advantage n o i SaSKatchewan t the c e r i Keeping d t n e m n r e v o g ThisbudgetaboutkeepingisSaskatchewan the Advantage. it needs.it energy,helpinghungrysupplyworldwithwhattoa continuesproduceto large a surplusfoodand of extremelyvolatile. yearafterButyear, Saskatchewan demandandtheseforproducts pricesandbecan economicconditions influencehaveansupplythe on Unpredictableweatherpatterns international and highqualitygrains oilseeds.and large,aand richlandbasethatcontinuesgrow to abundantenergy supplies, diversemineral deposits Saskatchewanblessediswithmanynatural resources, opportunity and growth Delivering • Makinglifemore • Improvingour • Sustaining • directionsetto province:thefor GovernmentThe identifiedhas goalsfournew life.a education,buildanfamilygetto raiseanda to business,startwork,alive,to to to Canada– Saskatchewanbestplacethein willbe VISION– government Saskatchewanpeople responsiveresponsibleand growthopportunitiesand qualitylifeof affordable for Budget Summary | Budget 2012-13 7 CANLPENSNBQCONMBSKABBC 2010 2009 2008 2007 International Total Total Interprovincial Interprovincial 2006 2005 2004 8 3 8 6 4 2 0

-2 -7 13

14 12 10 -12

Per Cent Per Number of People (000s) People of Number UNeMployMeNt rate CoMpared CoMpared UNeMployMeNt rate aCross proviNCes (2011) Source: Statistics Canada Net MigratioN Source: Statistics Canada Saskatchewan set new records for manufacturing set new records Saskatchewan set trade a in new 2008 and wholesale shipments in 2011. record Saskatchewan is seeing high employment levels and levels is high employment seeing Saskatchewan Canada rate across has had unemployment the lowest in needed are people More years. for the three past of the demands to meet the increasing our province market. labour tight

Employment (000s) 550 530 510 490 470 450 0 2011 2010 2009 2008 2007 2006 2005 Population, at Oct. 1 Employment 2004 0 980 960

1,080 1,060 1,040 1,020 1,000 Population (000s) Population Immigration to our province has been strong of late has been strong to our province Immigration and job as missions to trade grow and will continue for our growing seek out fairs new employees industries. substantial growth the demonstrate indicators A of economic variety in Saskatchewan. that is occurring growth significant to seek better here coming are people More to of work and find part to become opportunities, our community. high a record reached population Saskatchewan’s of in 2011. people October of 1,063,535 saskatChewaN popUlatioN popUlatioN saskatChewaN aNd eMployMeNt Source: Statistics Canada

8 Budget 2012-13 | Budget Summary Source: Statistics Canada Statistics Source: aCross CaNada aCross 2011,to 2010 froM ChaNge % – trade MaNUfaCtUriNgwholesale aNd Source: Statistics Canada Statistics Source: the world.the productsarebeing shippedcountries to around provincesCanada.inEveryyearmore our of economy,particularly whencompared otherto stronga Thisisindicator healthour the ofof rd saskatChewaN2011to 2000 – trade MaNUfaCtUriNgwholesale aNd Per Cent Billions of Dollars 10 15 20 25 10 15 20 25 0 5 0 5 2000 Manufacturing Manufacturing 2002 2004 2006 Wholesale Trade Wholesale Trade 2008 2010 CANLPENSNBQCONMBSKABBC and privateandsectorSaskatchewan. in plansgrowingtheforby investments publictheby businessThe climateclearlyis improving, evidenced sectorstheiroptimismin abouteconomy. the agriculturethe sectorjoining most“up-beat”the moodacrossThe industries positiveiswellwith as employmentnextthreeoverthefourmonths. to ahead;increasemanyhaveplansto theirfull-time Saskatchewanarefeeling optimistic aboutyearthe fromMarch 2012,small7,business ownersin IndependentBusiness (CFIB),Business Barometer AccordingCanadiantheto Federation of housingnewandstarts. secondtheandhighest growth vehicle newinsales rateacross Canadaretailin salesbuildingand permits 2011,SaskatchewanIn recorded highestthegrowth Source: Statistics Canada Statistics Source: iNteNtioNs private/pUbliCCapital iNvestMeNt Billions of Dollars 12 15 18 21 0 3 6 9 2002 2004 Private 2006 2008 Public 2010 2012 Budget Summary | Budget 2012-13 9 CANLPENSNBQCONMBSKABBC 2013 from Standard and Poor’s, Standard from 2012 “AAA” credit rating credit “AAA”

3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Per Cent Per private seCtor foreCasts of private growth, gdp aNd 2012 2013 Source: Average Average Source: of private sector forecasts, as of March 6, 2012 their highest rating, in 2011. rating, highest their debt to GDP is ratio steadily The province’s either are governments other while improving of a under debt to get mountain out from struggling to fund their positions to deficit returning or are programs. government fiscal discipline and tested being the are globe around Economies can have an here impact realities economic those with has been blessed at Saskatchewan While home. we to need be careful conditions, economic strong are investments and ensure managers fiscal sustainable. has been rewarded Government The Saskatchewan its first receiving management, fiscal for its careful ever Private sector forecasters are optimistic about optimistic are forecasters sector Private with the this year and next, growth Saskatchewan’s Canada. across place a holding strong again province – ranked Saskatchewan Economic Slowdown Barely Noticeable Out Noticeable Barely Slowdown Economic Provincial – Canada, of West Board Conference – Summary Executive Outlook 2012 Winter Canada for Western outlook “The economic is GDP growth ... real positive very remains stronger point to be a full percentage forecast this year and next. of the country than the rest levels at profitable remain prices Commodity of the the development to encourage and continue of out-of- thousands and to sector attract mining and families. their workers province ... widespread are of growth sources Saskatchewan’s 7.9 per cent will expand sector fuels the mineral is set for a 3.8 in per cent manufacturing 2012; which investment business gain ... non-residential to looks continue year, a is off strong very coming this trend.” activities, competitive tax rates, effective tax rates, competitive activities, fiscal and prudent infrastructure, transportation ...” policies in high marks the areas received Saskatchewan the regulatory and improving of management fiscal impact. The Fraser Institute – Institute Fraser The Investment Canadian Report 2010 Climate: its sixth from in up second the substantially nation, in 2005. ranking place and that ... notes “attracting The Institute an requires of levels investment high sustaining to that contribute to policies commitment ongoing economic productive climate: investment a positive So what are private sector forecasters saying about saying forecasters sector private So what are growth? Saskatchewan’s 10 Budget 2012-13 | Budget Summary Source: DBRS (as at March 31, 2012); Statistics Canada; Statistics 2012); 31, March at (as DBRS Source: Source: Saskatchewan Public Accounts and Public Accounts Saskatchewan Source: planidentified2011-12 theinBudget2011 the and four-yearfiscalplan,consistentwhich is withthe SaskatchewanThe Government outlinedhas a electionplatform. debt to gdp ratio,to debt CaNada aCross expeNse growth, year over year over year growth, expeNse perCeNtage of gdp (debt to gdpratio)toperCeNtage gdp (debt of saskatChewaNdebt as a goverNMeNt

021 031 041 2015-16 2014-15 2013-14 2012-13 Per Cent Per Cent .%40 .%4.0% 4.0% 4.0% 4.7% 10 15 20 25 10 20 30 40 50 60 0 5 0 Conference Board of Canada of Board Conference Saskatchewan Provincial Economic Accounts Provincial Saskatchewan 2002-03 2005-06 2008-09 2011-12 2014-15 NLPENSNBQCONMBSKABBC HighwaysInfrastructureand nextfouryears.overthe electionplatform commitment $2.2billionofin first2011-12theyear’sisand investment towards the percent$581.54.5ofmilliona is increase over 2012-13TheHighways Infrastructure and budget growingpopulation. helpcommunitiesto increasedwiththe a costof roads,for bridges, schools, healthcare facilities and heavilynecessaryin infrastructure across provincethe foundationgrowthforfirst itsterm, investingin SaskatchewanThe Government established solida trade and transportation in investments strategic thisyear.flatfor increasenotdid Government debt.Debtwillremain Financialdecisions were scrutinized ensureto they Fund. $756.4millionGrowththein Financialand Security reserveunexpectedinforhelppay to emergencies: budgetthebalanced, maintains itbut somefunds summaryalsobalancedbasis.isaonlyis Notit on 2012-13,ForGovernment the ahas efficienciestheiroperations.in thirdour partypartners vigilant befindingto in deliveredgovernmentby ministriesasking byand government,examiningby programs services Stepsarebeingfindefficiencies takento across resourcesavailablepublic.theserve to economy.the Thisavoidsbroad swingsprogramin sustainablefutureintothe matchgrowthandour in ensureneedto thatlevelsprogramof fundingare competitivenesstax debtmanagement.and We also continuewhilebalancing government’s interests for governmentthatkey programs servicesandcan uncommonexpenseanis privilege. meansIt affordBeingabletocentincrease per4.7 a in balancedbudget; Budget Summary | Budget 2012-13 11 people employed to the end this year employed of people February over last year; by has increased and apprentices Métis Nations 24 and, per cent; from has doubled Certifications Journeyperson 61 to in 123 in 2006-07 2010-11. The Ministry of Agriculture will also provide an provide will also of The Agriculture Ministry market for international $1.0 million additional This funding and advocacy. trade development existing to maintain support industry will provide new buyers and attract new markets develop markets, to the province. support for our growing economy is workforce and vibrant a strong Maintaining One of of a our economy. key component is the next generation key advantages Saskatchewan’s the education right who of will receive people young to of meet the our labour and demands training market. and of the Nations number First to increase Efforts progress: is showing in people the Métis workforce • and Métis Nations First more 5,900 are There • of the number First Over the four years, past • and Métis of Nations The First number will be on spent the Nations $450,000 First Another new careers. to help promote Program Apprenticeship that are and people Métis for Nations First Programs agreements gaming the provincial through funded by 3.8 this per cent to million $67.6 will increase year. to will be year two provided funding In addition, over three of $1.5 million meet the commitment Plan to with Action work the Northern through years of at-risk the well-being to improve leaders northern Saskatchewan. in northern individuals Connectors Program. Connectors highway surfaces – surfaces highway 320 kms of including repaving; to the related and culverts bridges highways, 2011 flooding; the start 11 of twinning, Highway the completion continued lane strategy, and passing of twinning and Bypass, Regina work on the West of Bypass; the Estevan commencement weight primary – including Strategy Highway on 150 km and upgrades to be completed and community to upgrade million $10.3 roads; access tourism – including Strategy and the Culvert Bridge 4 to be bridges to 29 be bridges replaced, and replaced culverts numerous rehabilitated, the St. bridge; Louis work to replace continued rural assists which Program Economy the road improve to strategically municipalities and, growth; economic supporting systems that for municipalities projects rehabilitation the under Urban agreements have signed Partnership (STEP) is increasing by $500,000, total by $500,000, is (STEP) increasing Partnership long-term to of ensure million, $3.4 funding growth. export through strength economic Investments are also being made to support our made to also being support are Investments markets. to access international in gaining industries Export Trade for the Saskatchewan Funding Highlights of the 2012-13 transportation investments of transportation the 2012-13 Highlights include: • of and replacement for repair million $207.8 • of and replacement for repair million $18.0 • including Corridors, for Gateway million $63.0 • the Rural under for upgrades million $70.5 • for of million $13.8 an increase million, $59.2 • for the Roads for the Municipal million $23.5 • and maintenance road to continue $7.9 million 12 Budget 2012-13 | Budget Summary $7.0millionuniversitiesfor theand • infrastructurepost-secondaryourat institutions: Supportalsobeingprovidedis improvingfor the $15.9millionblockforsustaining capital, • $4.0millionwillassist withplanning three for • $50.1millionwillprovide majorschool15for • $38.6millionprovidedis constructionthefor • made: existingschools,following the investments arebeing Tosupportschoolsnew needforupgradestheand to three-yearphasedovera bein period. transitionfunding2012-13.inmodel newwill The distributionprovidingmodelby million$10in Thisbudgetprovides supportfundingnew thefor million$822012-13.in Schooloperating fundingwillincrease almostby arecontributing increasedanto education. costof growingOur population expandingand communities infrastructure education continuedsupportAcademic thefor Health • $1.0millionsupportto planningstudent a for • SaskatchewanInstituteApplied ofScience and supportingsmallermaintenance projects. increasean $10.9millionof overlastyear, schoolnewcapital approvals; and, constructionrenovation;or capitalprojects, whichare already under governmentco-ownership model; schoolnewsixprojectsof provincial new a in Technologyfinancetosustaining capital; SciencesCentre project Universitytheat of SaskatchewantotalS),fundingdatewillof to(U residence,childcare facilitiesparkade aatand $215.6bemillion; the UniversitytheR); Reginaofof(U 4,100cases)thanduringsameperiod thelastyear. fiscalyear, sevencentmoreper (approximately morethan62,400surgeries sincestartthethisof DecemberAt2011, 31,Saskatchewan completedhas SurgicalInitiative. investment$60.5millionofSaskatchewanthe for Accesssurgeriesto willimprove totalwitha centincreaseper3.5 a overlastyear. budgetRHAswillincreasethefor $98.2million,by mostefficientthein so do manner.to and totalThe qualitystandardand care,patientoftheput first,to RegionalHealthAuthorities (RHAs)improveto the MinistryTheHealthworkingofis closely withthe Care health to improving access budget$4.68billion.of caresystem,increasean $217.6totalofmillion a for Budgetsignificantmakesa investmenthealth ourin theirphysicallifeisof health well-being.and This majorfactorAcontributing person’s a to quality life of Quality our iMproving $879,000capitalgrantsustaining for capital • $1.0millioncontinuedthefor construction • (at deCeMber 31, 2011)(at31, deCeMber CoMpleted sUrgeries – goalwait tiMe saskatChewaNiNitiativesUrgiCal at regionalat collegesfederated and colleges. Southeastnewtheof Regional College; and, Within 6 monthsWithin6 Within 3 monthsWithin3 Withinmonths12 Withinmonths18 87 per centper87 96 per centper96 centper99 76 per centper76 Budget Summary | Budget 2012-13 13 of seven previously announced long-term care long-term announced of previously seven model a under new co-ownership facilities (LTC) Health and the Regional the province between to funding grant and additional Authorities, facilities on six the other LTC progress continue underway; currently North Hospital the Saskatchewan to replace Battleford; and, of facilities; maintenance the Jaw Hospital. Moose Union health Care facilities health to made being also support are Investments the province: across facilities care • to construction in begin funding million $42.7 • and redesign planning to continue $5.0 million • and capital for equipment million $16.4 • to replace will continue and design Planning improving Circumstances for people with disabilities that a identified platform The 2011 election that the quality is to priority ensure Government in this improves of with disabilities life for people province. people this is for a Saskatchewan priority Clearly, support by the overwhelming as evidenced well, to year every the Kinsmen extended and generosity of the telethon, The 36th anniversary Telemiracle. a raised held in record-breaking Regina, recently This is to of a amount over $5.9 million. testament of back to in spirit giving others the Saskatchewan support. that need some extra our communities of an makes investment Budget The 2012-13 for programming new or million $26.4 enhanced office taking Since utilization. program and increased for disabilities funding in Government 2007, by million. $308.8 has increased programming In addition, $5.5 million will be invested to introduce will be invested $5.5 million In addition, to access primary to improve approaches innovative experience, the patient that will improve care health into the and sustainable stable are services ensure healthier. people Saskatchewan keeping future, to will be implement invested As $1.5 million well, to access pool to locum improve a physician rural platform. in the election as promised care, physician of resource a dedicated will encourage This initiative in Saskatchewan rural services providing physicians pool. locum short-term to in the existing addition the budget with diabetes, living help those To to add two forms a increase $2.5 million provides to the and insulin Drug Plan to expand of long-acting to those cover Pump Program Insulin the Children’s up to 25 of years age. an will receive Agency Cancer The Saskatchewan to total) million ($138.8 of million $16.9 increase and for increased to services access cancer support costs. and medical operating drug, for the Shock is of provided $5.5 million An increase Helicopter (STARS) Society Air Rescue Trauma operating and initial for start-up service Ambulance and transport on will focus care This service costs. in and rural remote patients ill or injured of critically of the province. areas to will be of provided $4.0 million A increase total providing province-wide, screening colorectal expand early supporting and tools thereby detection early outcomes. patient and improved treatment 14 Budget 2012-13 | Budget Summary Source: Ministry of Social Services Social of Ministry Source: waitlist for groUp hoMe spaCesgroUpwaitlisthoMe for eliMiNatiNg440 oN the progress peoplewithintellectual disabilities. residentialprogramdayand additionalservices20for provided2012-13meetincreasedinto demandfor addition,In $600,000capital infunding being is commitmentfrom 2009-10. completingGovernment’sthe Waitlist440 providespacesMarch,by clients,2013,67for disabilities$2.4millionandcapitalin funding will basedorganizations (CBOs)thatsupport peoplewith Increasesprovidedwillalsobe community- theto Coupleslivingindependently willreceive a • Singleindividuals livingindependently will • Peopleresidentialin care settings willreceive • numberclientsof10,000from toadults. up 3,000to $113.0million2012-13inwillexpand and the (SAID)program. totalTheprogram willcost Saskatchewanthe Assured IncomeDisabilityfor increaseAn $17.8millionofprovided is expandto Spaces Added an averagemonth$400peroverfouryears.anof month$230perincrease June,expandingin to fouryears;and, expandingaveragemonth$350peroveranofto receiveincreasean June,month $200perinof monthoverfouryears; additionalanJune, increasingin$40 $100perto 100 200 300 400 500 600 0 264 2009-10 Actual/Planned 322 2010-11 373 2011-12 Additions Emerging Needs 55 Budget Plan 440 2012-13 75 $3.0millioncapitalriskinnew funding a for • $500,000continuetoliteracy 20 campsfor • $600,000increase FetalforAlcohol Spectrum • $1.0millionenhancement AutismforSpectrum • theirfamilies includes: Government-widefundingchildren,for youthand beingenhancedis$6.0million thisbudget. byin initialTheinvestment $34.0millionof2011-12 in age. determinantshealthwell-beingearlyofandvery a at innovativeapproachwaysto socialkeythe “umbrella.”intentionandThefindnewto is programsfrom across government underone 2011-12Budgetbroughtand togethernumberof a ChildrenThe Youthand Agenda benefit. throughouttheirlives,thencollectively, allwe individuallytheycanIf achievebetter outcomes childreninvestourtoinquality lifeis of youth.and improvetodo bestthingscanthe weourof One Children for outcomes better insulinpumpschildren.for rehabilitation/mobilityequipment, oxygenand supportsorthotics,suchas prosthetics, disabilitiesillnesses.or Thisprogram provides total,maintainto benefits people forwithlong-term receiveincreasean $1.5million,of $39.4million SaskatchewanIndependentAidsto Living(SAIL) will assessmentchildtoolforprotection workers. underprivilegedyouth;and, $3.6millionacross severalministries; Regina,PrinceandAlbert, totalfunding of Disorderprevention servicesSaskatoon,in 2012-13;in Disordertherapies, totalfunding$7.6million of was launchedwasthe in Budget Summary | Budget 2012-13 15 This budget also provides $180.8 million for million $180.8 also provides This budget and (SAP) Program Assistance Saskatchewan caseloads, (TEA) Allowance Employment Transitional due to of a $5.7 million strengthening a decrease for employment. opportunities and more economy research and innovation at our occurring and innovation in research Investing can lead to an improved institutions post-secondary and have a in of Saskatchewan life here quality the world. around impact positive or (CLS, Synchrotron), Source Light The Canadian in the facilities one synchrotron of the most advanced Canada across from researchers is world, attracting that will help research to perform and internationally make plants new ways to diseases, tackle identify resilient. more and make metals productive, more for a of $1.5 million, an increase CLS will receive of budget $4.1 million. operating total in of opens which the spring 2012 will InterVac, and will its operations to support $2.1 million receive from and animals people to protect vaccines develop such as diseases or persistent of emerging the threat will This new facility or tuberculosis. influenza avian in 3 Level Western facility be the Containment first animal and with both human large dealing Canada diseases. Research in Saskatchewan investment The provincial to million. by $19.0 $850,000 is increasing Council that has a an organization supports This increase industry in of helping success record track proven their and improve innovate in our province partners competitiveness. has Children and Youth Agenda Agenda and Youth Children Care spaces and an infant care centre; and an care spaces infant Care Supports; by and, CBOs; Care Foster Treatment by CBOs. for Children ($15.8 million total) and $1.0 million in and capital $1.0 million total) million ($15.8 15 new pre-kindergarten to create funding and, next year; programs who in have schools children immigrant support (EAL). Language as an English Additional include: • Residential for 20 Out-of-Home million $1.15 • Family for Intensive increase $1.0 million • and for Home Assessments increase $750,000 • and Supervision for Visitation increase $500,000 Other enhancements for Child and Family Services for and Child Family enhancements Other supporting those in Need in to children with respect underway are Changes The to be favourable. proving are need and the results of the introduction The 2012-13 Budget in the Ministry of Education also of in Education Budget the Ministry The 2012-13 provides: • funding operating in increased $1.0 million • to total) million ($2.6 in new funding $600,000 greatly improved relationships with First Nations with First relationships improved greatly to improve and has new built partnerships agencies Nations First and children. to families services to annually $3.9 million provided are agencies for delivery and service case management support authorities. welfare child Nations First for to taken being find placements are Efforts and Nations with First family with extended children can remain so the that children on reserve agencies has contributed This approach in community. their with placed in of the number children to an increase The result both on family and reserve. off extended that are is in of a the decline number children steady of the into the Ministry. care coming 16 Budget 2012-13 | Budget Summary in Saskatoon.in Government support includes a awardsRegina,2013Memorialintheand Cup Saskatchewan2013GreywiththeJUNO Cup,the 2013promisesentertaining anbe to yearin sports, Culture and recreation and Culture sports, HospitalSaskatoon.in Tomography(PET-CT) RoyaltheUniversityat EmissionTomography Computerizedand operateandPositronS,the Innovationof Uthe at Cyclotron,a Canadianthe Centre Nuclearfor willsupport Totalfunding$4.8million2012-13 of in $3.3millionsupportto nuclearthe strategy.R&D InnovationSaskatchewan willinvestadditionalan Saskatchewan.in qualifyingfor expenditures incurred corporationsby investmentprovidingby credit taxcentpera 15 of willcontinueencourage to private sector R&D ResearchDevelopmentand (R&D)Tax Credits Innovation The ScienceandFundwillreceive • Academic The RenalTransplant Program will • Canada TheExcellence Research WaterChairin • $20.4millionagriculturalfor research and • Otherinvestments include: profitinstitutes. post-secondaryinstitutions associatedand non- federalfundingfor, research Saskatchewanat $6.4millionpromoteto excellence leverandin, 2012-13);in and, receive$376,000fundingnew in($678,000 total fundingnew($1.0 million2012-13); total in willreceiveS ofSecurity $500,000U the at in establishGlobaltheInstitute FoodSecurity;for diseaseweatherandconditions, $250,000and to improveand yield,quality toleranceand to accelerateto developmentthe wheatvarietiesof development,including $2.0millionresearchfor for the 2012-13theforcamping season. accommodateon-linereservations beinglaunched CampgroundManagement Systemwhichwill safety,fullimplementationtheforand newtheof electricalupgrades, improvements ensureto public increasean $3.0millionofserviceforcentres and Saskatchewanparkswillreceive someupgrades with acrossprovince,the$1.9million. costof a at providedapproximatelyfor community750 rinks communityrinkaffordability $2,500beinggrantofis promisedAs electionthein platform, new a NorthhosttheAmerican Indigenous 2014.Gamesin $1.0millionbeingprovidedis preparationsfor to hostingJUNOs.addition,theIn funding of preparationGreythefor$1.5millionand Cup for $6.2millionadditionalloanfor temporary seatsin course in the province.coursethein post-secondaryinstitution recognizedor training individual,appliedbetowardto tuitionany feesat maximum$2,000aofper yearto $500per to up everyhighschoolgraduate fromwith 2012on, AdvantageScholarship Program thatwillprovide investsSaskatchewan$4.6millionnewthein continueprovince.thetostudyin to Thisbudget initiativeencourageto Saskatchewan students 2011electionThe platform announcedkey a post-secondaryour institutions. centincreasepertwo supportto operating costsat 2012-13TheBudget provides million,$12 a makingthischoiceincreasinglyan affordable option. studentsfurtherto their education Saskatchewan, in numberinitiativesofA arebeing offered encourageto students affordability increaSing Budget Summary | Budget 2012-13 17 seniors pace with the this keep of cost living, help seniors To to total, million $24.2 million, $3.3 provides budget for benefit Plan (SIP) Income the Seniors increase and couples. singles to a supplement monthly provides This initiative or than the who have little no other income seniors Income and Guaranteed Old Age Security paid by government. the federal Supplement of the term, number seniors first In our government’s and the was doubled for this benefit who qualify it after had of was not doubled amount the benefit years. sixteen in the previous been increased will on July 1, the government starting This year, the benefit to increase commitment its election fulfill of by increases by $50 followed per month, a further $10 years. per in month each of the next three Home Care a Personal In new Seniors addition, at a in cost of will be $3.5 million provided, Benefit with seniors will provide This investment 2012-13. to them with help required assistance the financial home. care the cost of in personal living a licensed between is the difference supplement This monthly of The benefit and $1,800. income the senior’s $278 per will rise to month $369 per approximately year. by month the fourth families its tax structure examines continually Government competitive remains that Saskatchewan to ensure For as possible. as and taxes keeps affordable on children’s the tax sales exemption example, up to all children expanded was recently clothing in to the 2011 election age 18, as promised in was introduced This enhancement platform. to savings immediate bringing 2011, November annually. and $3.0 million costs families, expansion to residency 100 and the expansion physician to 120. seat expansion be introduced as part of the new commitment for as of part the new commitment be introduced seats; 20 new training by seats 170 – seats training 85 will be seats and, in added 2012-13; seat to training both the medical commitments The Graduate Retention Program is designed to is designed Program Retention The Graduate to stay and work in our students the encourage to offer It will continue graduation. after province up to $20,000 in Saskatchewan who reside graduates a now through years, over seven rebates in tuition tax and refundable of non-refundable combination credits. an offers Loan program Student The Saskatchewan education. way post-secondary to finance affordable for of $6.7 million an increase provides This budget to Aid total Fund, access the Student increased of million. $36.5 funding program are steps platform, in the As election announced professionals our medical to taken being encourage of A the portion in Saskatchewan. to remain nurses for loans new doctors, student Saskatchewan (up to will be forgiven and practitioners nurse and up for for doctors to nurses $20,000 $120,000 in under-served that practice and practitioners) nurse for five years. communities and rural remote the to implement funding also includes This Budget for medical commitments and previous recent seats: training • will seats training Five new Practitioner Nurse • Nurse to Registered expand million $10.3 • its will have fulfilled the government In 2012-13, 18 Budget 2012-13 | Budget Summary Source: Canada Mortgage and Housing Corporation Housing and Mortgage Canada Source: saskatChewaNstartshoUsiNg average5,908year,perof more thandoublethe drasticallyincreased anpastfouryearsthetoin numberhousingTheofstarts Saskatchewan in has 2006,demandthehousingforsteadily has increased. SinceSaskatchewan’s population started growing in housing $3.0millionannually. expansionwiththe estimatedadditionalcostan to participatesport,in culture recreationand programs continuesoffsetto costschildrenfor youthandto expandprogram.tothe benefittaxTheprogram age,fulfillingyearsof18 government’s commitment includetoactivities childrenallfor youthandunder ActiveTheFamily Benefit program expandedwillbe additionalcases. programfunding$18.2million)of support to 135 providedChildforCare Parent Subsidies (total addition,In $675,000fundingnewbeing inis educationimprovedand outcomesyoung forpeople. secondaryinstitutions facilitateto continuing thesespacesplacedschoolspost-willbeinor costsrelated thosespaces.newtomajorityThe of childnewcare spaces$4.0millionandcapitalthe for 2012-13,increasean $2.0millioncreateofto 500 $46.0millionoperatingin funding providedis in Supportalsobeingprovidedis childforcare: average of 2,932 in the previousaveragethe2,932inof sixteenyears. Number 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 0 2000 2002 2004 2006 2008 2010 low of 1.2 per cent in 2007 and haveremained2007andcentinper 1.2 of low low. chartthebelow, vacancySaskatchewanrates in a hit averagerental costacross Saskatchewan. showninAs since2006,creating demanddriventhethathasaup droppedsignificantly remainedand relatively low rentaltheIn housingmarket, vacancy rates have morehomehas a thandoubledprice ofsince 2006. quicklythansupply. Consequently, averagetheresale However,demandhousingfor continues risemore to Source: Canada Mortgage and Housing Corporation Housing and Mortgage Canada Source: reNtalvaCaNCy rate saskatChewaN average Source: Canada Mortgage and Housing Corporation Housing and Mortgage Canada Source: saskatChewaN averagepriCe hoUse Per Cent Dollars 100,000 150,000 200,000 250,000 300,000 50,000 0 1 2 3 4 5 6 7 2001 0 2001 2003 2003 2005 2005 2007 2007 2009 2009 2011 108% 2011 Budget Summary | Budget 2012-13 19 full point of Provincial Sales Tax (PST) based based (PST) Tax Sales of full point Provincial of an increase Accounts, on Public the 2010-11 the or previous 9.5 million per $20.6 cent from year and up 2007-08; 87 per from cent by the Gas Tax provided funding infrastructure Program; federal-provincial the under various level This funding programs. infrastructure due to of million $21.9 for a accounts reduction programs of stimulus the federal the completion in 2011-12; the under Saskatchewan commitments program and, Initiative; Growth Infrastructure Tax. of Property Grants-in-Lieu reSponSive and reSponSiblegovernMent delivering on Commitments to share a made firm commitment The Government This municipalities. with prosperity the economic includes: budget • to equal one Sharing in Revenue million $237.4 • municipal in flow-through million $56.1 • commitments to meet project million $48.4 • to of meet $500,000 an increase $6.1 million, • for of $500,000 an increase million, $12.3 will be in 2012-13 to municipalities funding Overall last year and up 14.8 per cent from million, $348.9 2007-08. up 60.9 per cent from our also made to support were Commitments and AgriStability by funding industry, agriculture at budgeted Insurance, and Crop AgriInvest, of $600,000. an in increase 2012-13, million $321.4 to a rising are record levels coverage insurance Crop what double nearly on high of average, $174 per acre to the unprecedented in In 2007. response they were now have the in 2010 and producers 2011, flooding Benefit Acreage the Unseeded to option supplement $15 or either by purchasing of acre $70 per eligible coverage. in $30 additional per acre 10,000 new rental units in the province the over life in units the province new rental 10,000 of the program. Corporation Housing the Saskatchewan In addition, to for to Humanity Habitat $1.0 million will provide achieve families 20 low-income help an additional home ownership. newly constructed multi-unit rental projects, for a projects, rental multi-unit constructed newly when of period up to This rebate, ten years. is expected initiatives, housing with other combined of an additional the construction to encourage 10 per cent of the rental income generated from generated 10 income per cent of the rental In response, the Government launched the long-term launched the Government In response, is The intention for Saskatchewan. Strategy Housing and to of housing the affordability to help improve in supply the province, the housing increase in affordable investment direct providing including projects. housing the introduced the government In 2011-12, Plan which Housing Advantage Saskatchewan (RCI) Incentive Construction the Rental included (AHOP). Program Home Ownership and Affordable with very have been successful programs These expectations. initial far exceeding applications to $3.7 million provides Budget The 2012-13 these With programs. these to support continue below, identified and the initiatives other programs to the add could up to rentals 10,000 the province and homes 650 student new 2,200 entry-level market, residences. in 2012 is introduced being A tax new credit income The to with the cost of home. people first help their will provide Credit Tax Homebuyers’ First-Time with a non-refundable residents Saskatchewan eligible of up to credit $1,100. rental of new multi-unit construction encourage To an is introducing Government projects, housing The investment. sector private to encourage incentive to equal tax rebate is income a incentive corporate 20 Budget 2012-13 | Budget Summary $6.2milliontotalfundingin Green for • $3.8million,increase an $800,000ofsupport to • $2.2millionmaintainto funding insectfor and • $2.1million,increase an $1.4millionofto • $1.7millionsupportto implementationthe of • $2.1millionone-timein funding thefor • $5.0millionextend2011Emergencytothe • managementfloodandprotection. programmingstrengtheninginand water Thisbudgetalsoinvestingisenvironmental in years. acceleraterehabilitation Canalover10M1the of includes$5.0million,increase an $1.9million,of to rehabilitateto provincial irrigation assets.Thisbudget Workwellunderwayfurtheristo commitmentthe funding. programs$11.8boostmillionofnewa inwillget addition,In federal-provincialthe Growing Forward $21.8milliontotaloperatingin fundingfor • yearprimarily becausepreviousa commitment to Initiatives,decreasea $10.8 millionof from last reforestation; infestation; mountainpinebeetlespruceandbudworm forest diseasecontrol, including preventionthe of throughWMIP; highestthatthepriority projects areaddressed enhanceSafetyDamtheProgram ensuretoand redevelopmentreinvestment;and Program(WMIP)majorforwaterinfrastructure 10-yeartheWater Management Infrastructure backlogtheclaimsinfrom 2011; ProvincialDisaster Assistance Program addressto FloodDamageReduction Program 2012;to SARCAN,actualwhichthelinksgranttheto provideenhanced fundingbeenfulfilled;has and, revenuecollected fromEnvironmental the level of fundinglevelthisimportantofto partner. HandlingCharge 2010-11,in providing stablea $450,0002011electionthefor platform • $2.0millioncaseloadfor increases adultin • addition$700,000 Inthe to above,increase an of • $1.2millionincrease (CPSP)$700,000and • $11.8millionimplementationthefor theof • $1.1millioncompleteto commitment the hire to • commitmentsafercommunities:to supporthelpto(JAG)to Government’sthe Policing(CPSP)JusticeandAttorney and General Ministriesthe Corrections,of PublicSafety and followingThe investments arebeing madethrough Communities safer individualsorderinprevent to crime. long-termand interventionsat-risk livestheofin Nationsworkerspoliceprovideand to immediate healthcaresocial andserviceagencies, First bringstogether community agencies, schools, agencyinitiative locatedPrinceinAlbert that CommunityMobilization Partnership, multi-a commitmentexpandsuccessfultothe corrections;and, primarilyrelated salaryadjustments;to appearancessinceother2000andfunding centincreasenearlyper50a tocourt in CourtcostsinServices Prosecutionsand related $4.4million($52.4 million total) increasingfor addingmore policeofficers prosecutors;and violentcrimemakecommunitiesand saferby commitment.Thisinitiative toughwillgeton High-RiskViolent Offender CrimeReduction phasedFTEs,theforimplementation theof (JAG),$1.9millionforadditionaltotal13 and total); RoyalCanadian MountedPolice ($161.5 million ProvincialPolicing ServicesAgreement withthe $14.0millionoffouryears); overthe police120officers overfouryears(totalfunding Budget Summary | Budget 2012-13 21 -5.2 +5.8 2011-12 The Growth The Growth 2010-11 requiring Treasury Board Board Treasury requiring 2009-10 2008-09 Population Public Service 2007-08 6 4 2 0

-2 -4 -6

be discontinued, saving $4.0 million, allowing $4.0 million, saving be discontinued, to be made decisions development economic will be offices regional Additionally, locally. this year and million $1.0 saving closed, thereafter; annually $2.0 million for middle-income above bursaries repayable to in most those benefits targeting students, per and, year; $3.1 million about saving need, in beginning tax will be discontinued property to million is save $16.0 which 2013, expected that year. Per Cent Per CUMUlative ChaNge siNCe base year, base siNCe ChaNge CUMUlative aNd serviCe (pUbliC 2007-08 popUlatioN) saskatChewaN Source: Saskatchewan Ministry of Finance Plan for 2012-13 • will Regions for Enterprise funding Provincial • non- Aid fund will eliminate The Student • of education payment for early Discounts in this identified on savings information For more on Key and Facts see the Backgrounder budget, at www.finance.gov.sk.ca Figures efficient and effective government introduced In the Government 2008, Act, Security and Financial on the size of the public and to report monitor than it faster that did and not ensuring grow service, is on the size of track, the This target the population. the while population is service diminishing public grows. $15 to $20, while maintaining one of the most $15 to maintaining $20, while Canada. across for drug plans seniors affordable in was 2007, expanded This cap was introduced in and 2008, prescriptions children’s to include since; has not increased this year and $3 $8 saving million million has ended; when the program annually for qualifying to be will continue refundable by Canadian-controlled R&D expenditures up to an limit annual corporations private with all qualifying other of $3.0 million, tax for a eligible non-refundable expenditures credit; Making responsible fiscal decisions a of are key the part Saskatchewan budgets Balanced a in uncertain these budget but balancing Advantage challenge. can times be a economic significant over a budget a sustained balanced Maintaining decisions. of some tough period time takes is spending that government It ensuring means over the long term. and sustainable affordable no it to saying means new spending, Sometimes a thorough flat or undertaking spending keeping and services. programs of existing review its has been reviewing government Executive to find more and organizations services programs, Government ways of business. doing efficient how best also examining are and agencies ministries infrastructure capital their and finance to prioritize results. better to achieve projects to need to of keep spending do this in more order We and services programs and to ensure control under term. over the longer sustainable are to help meet revised being are Some programs and to targets spending four-year Government’s and provincial sustainable remains spending ensure now and in the balanced, future: remain budgets • drug fees from the cap on Raising prescription • Credit, Tax down the Employment Film Winding • Credits Tax (R&D) and Development Research Three years ago, government started a process for Many governments are being forced to slash programs public service renewal, asking ministries to find ways and funding to deal with huge deficits and debt. to increase the efficiency of their operations and Saskatchewan’s strong fiscal position enables us to pursuing smarter delivery of programs. Various find efficiencies as part of a framework for methodologies have been used, ranging from Lean continuous improvement. process improvements to program evaluations. The Saskatchewan is blessed with many natural intention is to improve the experience of the advantages. Our strong and diverse resource base customer, client or patient, and to do so within a coupled with innovation, dedication and the smaller footprint. Saskatchewan spirit of hard work is helping to keep Government is continuing with its commitment to our economy growing. reduce the size of the public service and is well on As our population grows and businesses keep its way to meeting the goal of reducing the size of expanding, our province will continue to flourish. government by 15 per cent over four years. We are Government’s intention is to keep our economy demonstrating it is possible to have a smaller, moving forward and to support those that need our more efficient and effective government. The help along the way. Fiscal discipline is a key 2012-13 Budget brings the total FTE reduction to component in keeping the Saskatchewan advantage 1,302 in the first three years, a 10.3 per cent and ensuring that we maintain efficient and effective reduction. programs and services for years to come. Government is now asking all of its third parties to join in this effort and to find innovative ways to achieve efficiencies in the delivery of important services to the public. This may mean bulk purchasing of supplies, sharing services across organizations, and finding new ways of doing things.

• The Regional Health Authorities (RHAs) have been given expenditure targets to meet over the next year, without impacting patient care. This will be the third consecutive year that RHAs have been given targets like this.

• The education system is also being asked to help reduce costs while still delivering high quality education to our children throughout the province.

• Post-secondary institutions are being asked to consider the opportunities available to enhance the effectiveness and efficiency of their organizations, with specific attention to

| | Summary Budget administrative operations. Budget 2012-13 Budget 22 SaSKatchewan provincial budget 12-13 technical paperS

Budget Summary | Budget 2012-13 25 5.0 1.8 (2.7) (5.7) 11.1 15.9 16.6 17.2 21.5 (14.7) Canada 3 1 1 1 2 2 1 1 1 1 7.0 23.7 41.3 71.8 27.2 28.0 82.8 89.3 88.2 128.5 Saskatchewan Global Growth Prospects of the will feel the effect every region Globally, in crises the Eurozone. debt and financial ongoing and nations market Even so, many of the emerging on growth a positive will remain States the United as a Real GDP in whole the Eurozone trajectory. by to 0.5 per in contract cent 2012, is projected 2013. in cent per 0.9 only of expansion an by followed ExtERnal EnvIRonmEnt lead the way in terms of resource sector investment sector lead the way in of terms resource demand while tight, remain markets Labour this year. growth. population continued is for fueling workers of GDP growth real sees forecast The current to 2.8 GDP is per cent in Nominal projected 2012. by 8.6 per cent. improve 3 1 8 1 1 2 2 2 2 3 3.8 8.5 0.3 21.8 25.3 15.0 19.0 10.3 2011 Rank 2006-11 Rank 2006-11 thE SaSkatChEwan EConomy Investment Intentions Average Average Weekly Earnings Source: Statistics Canada Number of New SalesVehicle 7.3 Retail Trade Employment Wholesale Trade Building Permits Manufacturing Sales International Goods Exports 24.6 Number of Housing Starts Private and Public (Per cent change) SaSkatchewan economic indicatorS SaSkatchewan Last year was another strong year for Saskatchewan’s strong Last year was another positive. were indicators Most economic economy. one provinces among number ranked Saskatchewan trade and wholesale in the of value in retail growth real Saskatchewan’s Overall, permits. and in building by 3.6 to per cent in GDP have grown is estimated 2011. issues flooding faced sector the While agriculture as was not as widespread the problem once again, near ideal experienced in Much of 2010. the province very producing conditions, and harvesting growing crops. good quality outlook, the global surrounding uncertainties Despite strong to experience is well positioned Saskatchewan in in again Oil investment 2012. and potash growth to is expected prices, by strong supported particular, IntRoduCtIon 26 Budget 2012-13 | Budget Summary annual rate of 3.0 per cent in the fourththecentinper quarterannual3.0 rateof of consumerspending, U.S.realadvanced GDPan at Boostedinventoryby rebuilding strongerand 2013.centinper4.5 and centrespectivelyper3.8 centper7.62012,by and in Brazilcentandandperareexpand7.4 tobyalsoset 2013.Otheremerging marketstalwarts Indiasuchas withgrowth forecast improvetocentin per8.9 to remainsfundamentallyon solideconomic footing, years.pastfewtheHowever,postedeachof in China morecentannualperthan9.0growth thatnation lessvigorous2012,ain expansion compared theto China’srealforecastis GDP growcent perto8.6 by canadian and U.S. Growth aSSUmPtionS U.S. canadian and Global Growth aSSUmPtionS Global aainRa D rwh()25212927252.2 2.5 2.7 2.9 2.1 2.5 CanadianReal GDP Growth (%) Source: Ministry of Finance of Ministry Source: (%) Growth GDP Real U.S. Per Cent Change 10 -2 0 2 4 6 8 Source: Ministry of Finance of Ministry Source: China India cul21 0321 052016 2015 2014 2013 2012 actual 2011 2011 . . . . . 3.0 3.1 3.3 3.2 2.7 1.7 Brazil 2012 2012 and by 2.9 per cent in 2013.centinper2.9 by 2012and currentlyprojected increaseto centinper 2.1by partfiscalintorestraint. Canadian realis GDP Growthexpectediseasesomewhat to thisyear, due Canadianrealincreased GDP2011. centinper2.5 by 2013.centinper3.2 by 2012and projectedis2011and increaseto centin per 2.7by ofallcentinper advancedannual1.7 anrateof at registeredsecondthequarter.in U.S.real GDP moreandcentgrowth thandoubleper1.3the rate thirdfromthe2011,upcentinper 1.8quarter US 2013 Canada Eurozone Budget Summary | Budget 2012-13 27 2016 2014 Forecast 2012 2010 2008 2006 2004 0

95 90 85 80 75

105 100 US Cents US canadian dollar Source: Bank of Canada, Ministry of Finance By promoting ultra-low borrowing costs, by costs, either borrowing ultra-low By promoting and rates interest short-term or anchoring cutting banks central rates, interest long-term trimming conditions financial reinforcing are and governments growth. to economic conducive Canadian dollar to be appears the a with U.S. dollar Parity reasonable basis, On a fundamental dollar. for level the Canadian the country’s rate spreads, interest Canada-U.S. and commodity and metrics debt fiscal stronger at dollar or near keep the Canadian should prices stemming any in spike risk aversion However, parity. weaken is to temporarily likely the Eurozone from dollar. the Canadian 2012 2011 2011 actual 2012 2013 2014 2015 2016 2010 Canada 2009 U.S.

2008 2007

6 5 4 3 2 1 0 the federal funds rate between 0-0.25 per cent 0-0.25 rate between funds the federal at 2014. least through rate at 1.0 per lending cent its benchmark at 2013. least through

Short-term Interest Rate (%)Long-term Interest Rate (%)* 0.91 2.79 1.00 2.00 1.80 2.40 3.10 3.20 3.80 3.90 3.80 4.20 Canadian Dollar (US Cents)* 10-year Government of Canada Bond Source: Ministry of Finance 101.20 99.40 101.80 102.90 102.00 100.40 Per Cent Per Interest Rates not less, to shift more, has been a pronounced There around banks by central accommodation monetary central Asia and America, Latin In the world. Europe, have resorted Others rates. have cut banks interest non-traditional and other easing to quantitative at rates low interest to keep longer-term measures have kept their States and the Canada United levels. on rates hold for longer. interest benchmark • to hold is Reserve expected The U.S. Federal • to keep expected The is Bank of Canada likewise canadian intereSt rate and canadian canadian aSSUmPtionS intereSt dollar rate canada and U.S. canada key Policy rateS, weekly Source: Bank of Canada, U.S. Federal Reserve 28 Budget 2012-13 | Budget Summary reSidential inveStment in SaSkatchewanin inveStment reSidential 2010.Wet conditions werespecificfew confineda to problemthewidespread asnotlastyearwas in as However,2011-12thenotedinMid-Yearas Report, result,a2011. Asin manyacres wentunseeded. Excessmoisture issuefarmersforanwasagain potashindustry. increasingproduction capacityprovince’sthe of addition,workcontinuedprojects on geared toward moreresponse2010,inthanin rising toprices. In drilledwells3,528oillastyear,new cent29.2per non-residentialtermsofIn investment, producersoil 7,031units.centto19.0per previousthe year. Housingstarts particular in rose roughlycentfrom$3.1billion24.4per2011,upin dwellingsnewrenovations,inwellas as totaled Residentialinvestment overall, including investment economicof growth Saskatchewan.in Businessinvestmentdriver keycontinuesa be to PERfoRmanCE RECEnt

Residential Investment, $Billions 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Source: Statistics Canada Statistics Source: 2003 2005 eieta netetHousingStarts Residential Investment 2007 generallyhigher, average,on2010. thanin year,crop pricesthroughout lastyearwereofall Thoughcrop pricessecondlasttheeasedhalfofin centmoreper5.7and10-year thanthe average. centmore 14.8per2010 thanin produced– lastyear croptermsofIn quantity, 26.0milliontonnes were producedand goodqualityverycrops. experiencedgoodgrowing harvestingand conditions areasprovince.theof majorityTheprovincethe of Source: Statistics Canada Statistics Source: Millions of Tonnes SaSkatchewancroPProdUction 10 15 20 25 30 35 0 5 2002 10-year average 2009 2005 2011 2008 0 1,400 2,800 4,200 5,600 7,000 8,400

2011 Number of Housing Starts Housing of Number Budget Summary | Budget 2012-13 29

Employment, Thousands 550 530 510 490 470 450 0 2011 2011 2010 2009 2009 2007 2008 2007 2005 2006 Canada Saskatchewan 2003 2005 Population, at Oct. 1 Employment 2004 2001 0 9 8 7 6 5 4 0 980 960

1,080 1,060 1,040 1,020 1,000

Per Cent Per Population, Thousands Population, PoPUlation and and emPloyment PoPUlation in SaSkatchewan SaSkatchewan and canada SaSkatchewan UnemPloyment rate Source: Statistics Canada Increased demand for workers has helped attract has helped for workers demand Increased jurisdictions. other from to people the province of quarter in the third net-migration International Between ever recorded. last year was the highest 1, 1, Saskatchewan’s 2010 and 2011, October October by persons. 15,241 increased population Source: Statistics Canada 2011 2011 2010 Canola Durum 2009 2009

2008 2007 Barley Wheat 2007 2005 2006 2005 0 2003

600 500 400 300 200 100 9 8 7 6 5 4 3 0

Dollars/Tonne Billions of Dollars of Billions Saskatchewan’s unemployment rate has consistently unemployment Saskatchewan’s average. the been well below national had the lowest unemployment rate in Canada. had unemployment the lowest tight. For the third year in a row, Saskatchewan Saskatchewan year in a For the tight. third row, sector employment. Still, labour markets remain markets labour Still, employment. sector Flooding had an impact on both agriculture and oil had an on impact both agriculture Flooding though not to the extent it did the previous year. not to though it the extent did the previous Saskatchewan employment grew again in again 2011, grew employment Saskatchewan Increased production and prices led and to cash prices higher production Increased receipts Crop farmers. for Saskatchewan receipts $8.0 billion. went up alone 19.6 per cent to roughly SaSkatchewan Farm croP receiPtS croP Farm SaSkatchewan SaSkatchewan croP PriceS croP SaSkatchewan Note: Crop prices are on a calendar year basis. Wheat, durum and barley prices are Canadian Wheat Board (CWB) prices and include initial, adjusted initial, interim and final payments made by the CWB on a retroactive basis. Source: Statistics Canada Source: Statistics Canada

30 Budget 2012-13 | Budget Summary Source: Statistics Canada Statistics Source: exceedednationalthe average firstthetime.for averageweeklyearnings Saskatchewan in lastyear NewfoundlandLabradorandAlberta. and well, As increaserankedthird amongprovinces, behindonly $878.38.2011tocentin Thispercentageper3.8 Averageweeklyearnings Saskatchewan in grew by Source: Statistics Canada Statistics Source: net-miGrationinterProvincial SaSkatchewaninternational and averaGeweekly earninGS SaSkatchewancanada and Dollars/Week Thousands of Persons 500 550 600 650 700 750 800 850 900 -4 -3 -2 -1 0 1 2 3 4

0

1991 2004:1

2004:3 2005:1

1995 2005:3 akthwnCanada Saskatchewan 2006:1

Net-Migration International Interprovincial Net-Migration 2006:3

1999 2007:1

2007:3 2008:1

2003 2008:3

2009:1 2009:3

2007 2010:1

2010:3 2011:1

2011 2011:3 Source: Statistics Canada Statistics Source: growcent.per8.6by cent,perwhile2.8nominalforecastby is GDP to 2012,ForSaskatchewan realforecastis GDP grow to businessand investment areprimarythe reasons. quantity)of slightlyand stronger consumer spending respectively.better-than-expectedA cropterms (in forecastscent,11.2percentandper3.1 of 2011-12mid-year realnominal andgrowthGDP forecastsrepresent slightimprovementa from the nominalgrowthGDP 2011.forThesegrowth centrealper3.6growth GDP cent 12.9perand Overall,MinistrytheFinanceforecastingof is outlook growthof Canada.in highest therate growth2011– centinper8.5 of recentfigures released Statisticsby Canadashow forecastprojected growthcent;perhowever, 6.4of strongerthanexpected. 2011-12Themid-year Retailsalesgrowth Saskatchewanlastyearin was retail SaleS Growth in 2011retailin Growth SaleS Per Cent Change 0 1 2 3 4 5 6 7 8 9 NLPENSNBQCONMBSKABBC Budget Summary | Budget 2012-13 31 2012 2010 Public 2008 2006 Private 2004 2002

9 6 3 0

21 18 15 12 Billions of Dollars of Billions Private and PUblic inveStment Private in SaSkatchewan Source: Statistics Canada Part of overall growth in 2011 was due to growth the of Part overall This production. in crop 14.8 per cent increase the flooding because in part, was possible, increase on the impact 2010 negative of had 2010 such a large The fell 24.9 per current cent). production (crop crop to 2011. crop a assumes similar-size 2012 forecast this year. growth help drive will investment Private trend has been on a investment remarkable Private another to and grow years is expected in recent Canada’s to Statistics 4.9 per cent in according 2012, intentions investment and public private most recent survey. 2013 2013 Nominal GDP Trendline 2012 Forecast Forecast 3.62.8* 2.8 2.1 2.6 2.0 2.4 2.2 2.4 2.1 2.3 2.3 2011 2012 2013 2014 2015 2016 2011 2011 Nominal Global recession 2010 2009 Nominal Commodity price boom Real 2009 2007 2008 Real Commodity price boom 2007 2005 0 40 30 20 10 0

-10 -20 90 80 70 60 50 40 30 20 10

Retail Sales Growth (%)* Actual Source: Ministry of Finance, Statistics Canada 8.5* 5.5 4.3 5.6 4.0 4.0 Nominal GDP Growth (%)CPI Growth (%) Employment Growth (000s) 12.9Unemployment Rate (%) 1.6* 8.6 5.0* 5.5 3.7 5.1 4.2 3.2 5.3 3.3 3.6 5.1 3.6 3.4 5.2 3.5 5.0 Real GDP Growth (%)

Per Cent Change Cent Per Billions of Dollars of Billions SaSkatchewan GdP GdP SaSkatchewan SaSkatchewan ForecaSt SUmmary SaSkatchewan SaSkatchewan GdP Growth GdP SaSkatchewan Source: Ministry of Finance Source: Ministry of Finance 32 Budget 2012-13 | Budget Summary Source: Statistics Canada, Conference Board of Canada of Board Conference Canada, Statistics Source: commodity Price aSSUmPtionS – calendar year calendar – Price aSSUmPtionS commodity intentionS aS a Share oF nominal GdP nominal oF intentionS aS aShare PrivateinveStment PUblic and strong. province’spotashindustry, areexpected remain to includinginvestment related expansiontothe of investmentgasandOil other andmininginvestment, NewfoundlandLabrador.and cent,27.6perbehindbeonlyAlberta to and totaled2012,cent.thisfigure19.7perIn expected is investmentshareaprovincial asof nominalGDP Saskatchewan,2002inIn privatepublicand Per Cent Potash (C$/K Potash (C$/GJ) Gas Natural Wheat (C$/tonne) Wheat Potash (US$/KCl tonne) (US$/KCl Potash WTI Oil (US$/barrel) Oil WTI Source: Ministry of Energy and Resources, Ministry of Agriculture Ministry Resources, and Energy of Ministry Source: 2 1 (C$/tonne) Canola 10 15 20 25 30 35 Canadian dollar price per K per price dollar Canadian Crop prices are on a crop year basis and represent the price at the farmgate. the at price the represent and basis year crop a on are prices Crop the on based however,are calculations, royalty Provincial tonne. KCl per dollars US in prices quotes industry potash The 0 5 2 O tonne) O 2 2 2002 2 O tonne. O 1 1 2012 4.0550 1.9482 8.2494.03 286.17 489.42 290.22 819.21 488.24 277.31 792.78 517.49 264.96 772.85 525.00 272.28 768.31 540.00 269.76 758.93 666.95 cul21 0321 052016 2015 2014 2013 2012 actual 1.8401 7.1451 9.7501.72 493.27 485.11 477.11 460.17 411.48 51 0.0120 0.0100 100.00 100.00 102.00 102.00 100.00 95.11 2011 .330 .040 .04.80 4.40 4.00 3.50 3.00 3.43 NLPENSNBQCONMBSKABBCCA per barrelper 2012.in TexasIntermediate (WTI)willaverageoilUS$100.00 year.currentThe forecast assumesWestpricetheof strongpricesoilwhichare expected riseagainthis to Investmentbeingpatchsupportedoilisthe in by Source: Statistics Canada Statistics Source: mininG inveStment in SaSkatchewanin inveStment mininG Billions of Dollars 0 1 2 3 4 5 2003 Extraction Oil andGas 2006 2009 (except oilandgas) Mining 2012 Budget Summary | Budget 2012-13 33 2013 CANLPENSNBQCONMBSKABBC Forecast 2012 2011 2013 2010 2009 2012 2008 2007 2006 0

540 530 520 510 500 490 480

3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

Per Cent Change Cent Per Thousands as of March 6, 2012. SaSkatchewan emPloyment SaSkatchewan Private Sector ForecaStS oF Private real Growth GdP by Province* Source: Statistics Canada, Ministry of Finance * The percentages are the average of private sector forecasts According to private sector forecasters, sector to private According to is outperform expected economy Saskatchewan’s in each of the next economies all provincial other of Saskatchewan forecasts sector Private two years. a high of in from 2012 range GDP growth real 4.2 per cent to a low of 2.4 per cent. Agricultural prices are also expected to remain strong to remain expected also are prices Agricultural expected are in and particular Wheat canola this year. per tonne, per and $525.00 tonne $272.28 to average respectively. to is continue expected in Saskatchewan Employment by to increase is forecast employment to Total rise. this year and by 5,500 in 4,200 2013.

Natural Gas, C$/GJ Millions of K2 O Tonnes 9 8 7 6 5 4 3 2 1 0 12 11 10 9 8 7 6 5 4 3 0 2016 2016 2014 O tonne. O World tonne. Natural Gas Price Forecast 2014 2 Forecast 2012 2012 2010 2010 O tonnes O of in tonnes potash 2011 as potash 2 Potash Production Potash Price Number of Wells 2008 2008 0 0 800 600 400 200

1,400 1,200 1,000 900 750 600 450 300

Number of New Wells Drilled Wells New of Number C$/Tonne natUral GaS and PriceS the natUral nUmber SaSkatchewan in drilled wellS GaS oF SaSkatchewan PotaSh ProdUction PotaSh SaSkatchewan and averaGe PotaSh PriceS PotaSh averaGe and prices increased to $666.95 per to K $666.95 increased prices The Saskatchewan potash industry produced a record produced industry potash The Saskatchewan K 10.4 million Oil production last year was impacted somewhat by somewhat last year was impacted Oil production over the strong to but is remain expected flooding, in of The number gas drilled wells period. forecast but is years, in has fallen recent Saskatchewan as improve. to prices to begin rise gradually expected demand has eased in recent months due in to months part has in eased demand recent outlook. growth the global surrounding uncertainties to on production This is have some impact expected to remain expected are however, in Prices, 2012. strong. Source: Ministry of Energy and Resources Source: Ministry of Energy and Resources 34 Budget 2012-13 | Budget Summary is forecastis performto wellagain thisyear. RealGDP Saskatchewan’seconomyperformed 2011,andwellin ConCluSIon growthprojected,centisper2.8 of growthjob and is expectedcontinue.to (Per cent change*) cent (Per PrivateSaSkatchewanFor ForecaStS GdPGrowth realSector change*) cent (Per PrivateProvince by GdPGrowth real oF ForecaStS Sector Newfoundland and Labrador and Newfoundland Island Edward Prince Scotia Nova Brunswick New Québec Ontario Manitoba Saskatchewan Alberta Columbia British * As of March 6, 2012 6, March of As * Forecast Budget 2012-13 Sector AveragePrivate Bank Laurentian includes here sector Private 2012. 6, March of as forecasts sector private of average the are table the in shown percentages The * Canada CIBC Montreal of Bank RBC Bank TD Economics Spatial for Centre Canada of Board Conference Insight Global IHS Scotiabank all of the major Canadian banks, Global Insight, Conference Board of Canada and The Centre for Spatial Economics. Spatial for Centre The and Canada of Board Conference Insight, Global banks, Canadian major the of all 01Rn 02Rn 03Rank 2013 Rank 2012 Rank 2011 . . . 3 7 4 2.6 7 1.9 6 2.5 5 6 1.9 4 7 2.0 1 8 2.2 2 1.8 9 2.5 4 1.7 8 3.3 1.6 5 3.2 1 1.5 3 2.5 6 1.6 1 8 1.9 2 3.9 9 2.3 4 1.9 7 3.1 1.6 5 3.0 1.2 5 2.1 1.8 2 2.1 3 2.1 4 3.8 3.6 2.3 2.4 2011 3.6 3.8 3.5 4.0 3.1 4.5 3.0 3.6 5.2 3.1 4.0 economyafloat. UnitedStatesanticipatedis worldkeepthe to economicgrowth emergingin marketstheand countriesarealready recession,in continued debtcrisisremain concern. a ThoughsomeEurozone Uncertaintiessurrounding Europeanthe sovereign 2012 2.8 3.1 2.4 3.1 2.9 4.2 2.4 4.2 2.6 2.9 2.8 2.0 2013 2.6 3.3 2.6 3.0 3.0 4.7 2.7 3.4 3.5 3.4 3.0 2.4 Release Feb./12 Feb./12 Dec./11 Dec./11 Mar./12 Mar./12 Jan./12 Jan./12 Jan./12 date Budget Summary | Budget 2012-13 35 Other Own Sources: 11% Other Own Sources: Non-Renewable Resources: 28% Non-Renewable Resources: Provincial Sales Tax (PST), Liquor Consumption Liquor (PST), Tax Sales Provincial recorded are vendors Tax and Tobacco (LCT) Tax tax from of deducted as instead GRF expense is The cost of total commissions these revenue. and expense Revenue at $9.0 million. budgeted to reflect have been restated for 2011-12 forecasts standard. this new accounting Federal Transfers: 14% Federal Transfers: stimulus and infrastructure programs that that are programs and infrastructure stimulus Investments Crown a million $120.0 expiring, to help dividend (CIC) of Saskatchewan Corporation own-source miscellaneous and other relief, fund flood gains. GRF revenue items, non-recurring these Excluding 5.4 per to cent in grow 2012-13. is estimated revenue tax all revenue incorporates forecast The tax revenue Budget. with the 2012-13 introduced initiatives standards new accounting the following In addition, into the forecast. have been incorporated • paid to commissions in 2012-13, Beginning FInancIal outlook GEnEral rEVEnuE Fund The The Act Taxes: 47% Taxes: $11.3 billion $11.3 Total Revenue: Total

2012-13 GrF rEVEnuE to in be billion $11.3 is forecast GRF revenue or of million, $215.7 an increase 2012-13, is due The increase 2011-12. 1.9 per from cent, and taxation resource to non-renewable higher from by revenue lower offset partially revenue, and federal own-sources other entities, Crown transfers. non- by several was in boosted 2011-12 Revenue federal unbudgeted include These items. recurring via funding federal revenue, assistance disaster requires a four-year financial plan in total which financial a four-year requires must balance expense Fund (GRF) Revenue General each year. with or be GRF less than total revenue a of GRF surplus estimates Budget The 2012-13 for also forecast are GRF surpluses million. $47.5 years. three the subsequent The 2012-13 Budget represents the fifth the year under fifth represents Budget The 2012-13 Act. Security and Financial The Growth IntroductIon composition of 2012-13 grf revenue 36 Budget 2012-13 | Budget Summary By revenue source revenue By reconciliationrevenue grf 2012-13 By major factor major By reconciliationrevenue grf 2012-13 Interest Earnings Interest Dividend Special CIC TransfersFederal Surcharge Resource Dividend Regular CIC Oil Taxes Potash 1 Estimate revenue GrF 2012-13 totalchanges revenue Changes Other Forecast revenue 2011-12GrF Dollars) of (Millions Change in CIC Dividends CIC in Change Change in Other Own-Source Revenue Own-Source Other in Change TransfersFederal in Change Base Revenue Own-Source in Growth 2 1 Estimate revenue GrF 2012-13 totalchanges revenue Tax2012-13 Measures Revenue and Forecast revenue 2011-12GrF Dollars) of (Millions The 2011-12 forecast has been restated to be consistent. be to restated been 2011-12has The forecast revenue. tax from deducted of instead expense GRF as recorded are vendors tax to paid commissions 2012-13, in Beginning The 2011-12 forecast has been restated to be consistent. be to restated been 2011-12has The forecast Includes non-recurring interest earnings and dividends from other government organizations. government other from dividends and earnings interest non-recurring Includes revenue. tax from deducted of instead expense GRF as recorded are vendors tax to paid commissions 2012-13, in Beginning 1 1 2 11,075.2 11,290.9 11,075.2 11,290.9 (127.0) (167.9) (167.9) (117.4) 129.0 198.1 254.1 215.7 215.7 597.1 (92.4) (48.7) (87.0) 30.5 40.0 (9.1) Budget Summary | Budget 2012-13 37 $169.1 million (8.8 per cent) in 2012-13, of per in (8.8 cent) 2012-13, million $169.1 to the no SLITC is related million $80.0 which Income Individual against deducted being longer is of the increase The remainder revenue. Tax in growth to due mainly anticipated and wages. employment Saskatchewan from of million $24.5 a decrease 2012-13, for new to Prior adjustments 2011-12. is forecast PST revenue standards, accounting This (4.4 per cent). million $60.4 to grow by the new than offset is more however, increase, the million $80.0 that deducts policy accounting as well as the PST revenue, from SLITC and in of interest million $4.9 reclassification with the PST to Other collected revenue penalty revenue. Own-Source In 2011-12, the same as last year. million, $247.1 did consumption in tobacco growth anticipated this year is revenue As a result, not materialize. unchanged. to remain budgeted in a to is result expected population revenue in Fuel Tax increase million $17.0 in taxes Other increase and an million $11.7 in 2012-13. • by to grow is forecast Tax Income Individual • in at billion $1.3 is forecast PST revenue • at is forecast revenue Tax Tobacco • and economy in Saskatchewan’s Growth non-renewable resource revenue for accounts which revenue, resource Non-renewable at $3.1 billion is 28 forecast per cent of GRF revenue, or of million, $387.2 an in increase 2012-13, is due to The increase last year. 14.0 per from cent, Surcharge, oil in and the potash, Resource increases land sales, in by Crown declines offset partially resources. gas and non-renewable other natural CIT revenue is forecast at $817.2 million, an at million, $817.2 is forecast CIT revenue 2011-12. from of million $24.8 increase payments to the province in 2012-13. As in a 2012-13. result, to the province payments tax system are now included in Own- Other now included are tax system moves This new policy revenue. Source was that previously of revenue $7.4 million Premium, to Interest, as tax revenue reported and Fines, million) ($4.4 and Exchange Discount Revenue million). ($3.0 and Penalties Forfeits to have not been restated for 2011-12 forecasts this change. reflect PST from is now (SLITC) deducted Credit The Tax. Income of Individual instead revenue at million $80.0 is budgeted cost of credit this have for 2011-12 forecasts Revenue per year. this new accounting to reflect not been restated standard. by lower-than-expected affected negatively tax credit and higher-than-expected assessments in CIT revenue for the claims 2010 tax year. than lower million was $288.3 2011-12 of prior- as a a negative result largely budgeted, for the 2010 tax year. year adjustment also negatively assessments 2010 The weaker instalment as federal revenue, 2012-13 affect for the 2012 tax year to Saskatchewan payments of national share on based the province’s are in This feature income 2010. taxable corporate CIT restrains agreement of the tax-collection • the under levied and penalties charges Interest • Tax Low-Income The cost of the Saskatchewan in at 2012-13 $5.3 billion is forecast revenue Tax This is for 47 and per cent of accounts GRF revenue. or 3.9 per from of million, cent, $198.1 an increase 2011-12. • was in (CIT) 2011-12 Tax Income Corporation 38

Budget 2012-13 | Budget Summary saskatchewanpotash prices Potashrevenue forecastis $705.2atmillion in • fiscal-year non-renewaBle resource forecast non-renewaBleassumptions resource fiscal-year Natural Gas Price (fieldgate, C$/GJ) (fieldgate, Price Gas Natural Well-head Oil Price (C$/barrel) Price Oil Well-head (US$/barrel) Price Oil WTI feet) cubic (billion Production Gas Natural Canadian Dollar (US cents) (US Dollar Canadian K (million Sales Potash C$/K netback, (mine Price Potash tonne) US$/KCl netback, (mine Price Potash barrels) (million Production Oil areforecast 10.2millionbeK to neededmaintainto fertilizer applications. Sales populationprovide farmersincentiveswiththe positivehighcropasgrowing pricesa and world outlookThepotashfor salespricesand remains year. 2012-13,increasean $254.1ofmillion from last per KCl tonneKCl(C$761perK per Averagerealized pricesare forecast US$464at 2012-13,lastyear.sameasthe US$/KCl Tonne (mine netback) tonneKClfrom lastyear. 2012-13fiscalyear, increasean US$41perof 100 200 300 400 500 0 1982 (C$761 perKOtonne) US$464 perKCltonne 2012-13 Average MineNetback: 2 1987 2 O tonnes) O 2 O tonne)theinO 2 O tonnesinO 1992 2 O tonne) O culForecast Actual 1997 2013 and beyond.2013and forecastremainto wellabovepre-expansion levelsin investmentsSaskatchewantheby potashindustry are thendecline2012and2013.Nonetheless,in until2020,capital expenditures areexpected peak to mineexpansions areexpectedcompletenot be to boostpotashtoroyalties 2012-13.in Whilecurrent expendituresrelated mineexpansionsto willbegin addition,In windingtheindustrydownof capital 2002 011 011 2012-13 2011-12 2011-12 ugtFrcs Budget Forecast Budget 73 07 82.45 100.50 135.6 80.79 96.60 153.6 77.38 93.75 160.2 98 0.4100.00 100.64 176.9 99.82 156.2 159.4 041. 10.2 10.2 10.4 .532 2.98 3.29 3.65 4 8 761 689 646 9 2 464 423 393 2007 2012 Budget Summary | Budget 2012-13 39 2013 2012 Jan-12 2011 2010 Nov-11 2009 WTI oil is expected to average US$100.50 per US$100.50 to WTI oil is average expected The value in 2011-12. US$96.60 up from barrel, in at parity is dollar projected of the Canadian average last year’s from a decrease small 2012-13, rate. exchange last from to rebound is expected Oil production that resulted output lower-than-expected year’s conditions. and wet summer spring from than more to increase is forecast Production barrels. million 176.9 13 per cent and reach Sept-11 2008 2007 July-11 Actual Forecast 2006 2005 May-11 2004 2003 Mar-11 2002 2001 * Existing producers Jan-11 0 0 500

90 80

3,000 2,500 2,000 1,500 1,000 120 110 100

US$/Barrel Millions of Dollars of Millions of is a result The increase of million. $129.0 forecasts. and price production higher oil (WTI) prices Intermediate Texas West in 2011, For example, to be continue volatile. and US$75.67 between ranged prices daily US$95.11 and averaged per barrel US$113.93 year. calendar over the entire are prices well-head Saskatchewan For 2012-13, up per barrel, C$82.45 to average forecast is due largely The increase last year. from C$1.66 for WTI oil prices. to a forecast higher • an increase at $1.6 billion, is forecast Oil revenue wti oil prices saskatchewan potash industry capital expenditures* capital industry potash saskatchewan

40 Budget 2012-13 | Budget Summary and developmentand strategy. 2012-13TheSpecial $10.0millionSaskatchewan’sfor nuclearresearch fundprovincial flood-relief programs and providedCIC dividends$120.0 ofmillionhelp to decreasespecialindividends from2011-12, CIC.In Thisincrease moreis$127.0 thanoffsetmillion a by 2012-13,inincrease an $40.0million.of Theregular CIC dividend istargeted at$150.0 million fromlastyear. $639.4million2012-13,$112.0in million a decrease Transfersfrom Crown entities areforecast at Entities crown transfersfrom Othernon-renewable resources, including • Naturalroyaltiesgas areforecast $12.5million,at • Crownlandsalesare forecast generateto • ResourceSurcharge revenue forecastis at • 2012-13,increasean $3.0millionoffrom lastyear. (SLGA)dividendforecast is $439.9 bemillionto in SaskatchewanThe LiquorGamingandAuthority $3.0million.Dividendatset is 2011-12. $123.8million,decrease a $6.8million offrom uranium,othercoalandminerals, areforecast at 135.6billioncenttoper cubic12 feet. 2011-12.Production expectedisfallnearly to $2.98gigajoule,perat downfrom $3.29in Americanwinter. Naturalpricesgas are forecast backdrophighinventoriesofwarmNorth aand naturalcontinuesgasweakagainstbe a to decreasea $5.5million.ofoutlook The for purchasedrecentin years. continuesdrillingfocusontoexploring and land $14.1millionfrom industrythe lastyearas $220.0millionrevenue,in decline aof sales,primarilypotash. andoil growthnon-renewablevaluetheofin resource increaseresultfroma continued lastyearisof $485.9million2012-13.in $30.5 Themillion fundingrecorded 2011-12.in significanta amountfederalofdisaster assistance infrastructurestimulusand programs, wellasas expirationdownandnumberfederalof a of decreaseThe primarilyisresult awinding theof 2012-13,decline$234.7aofmillion from lastyear. sharingarrangements forecastis $320.3atmillion in Otherrevenue received from federal-provincial cost- fundingenvelope. mainlylegislateddueto increases federalthein $363.7million,$11.0million. up increases The are CanadaSocialTransfer revenue estimatedis at $902.9million,increase an $55.8million,of and CanadaHealthTransfer revenue estimatedis at decrease$167.9ofmillion from lastyear. Canadaofwilltotal$1.6billion 2012-13, in a Transferscontributionsand fromGovernment the transfersFederal 2011-12inthatare budgetednot repeat. to resultfinancialsaleofathe gainsyearasonassetsof revenueforecastis dropto $92.4million from last 2012-13.Interest, premium, discountexchange and declineprimarilydueislower interest to earnings in $601.3million,decrease a $89.7 million.of The Otherown-source revenue forecastis at revenue own-Source other CorporationSaskatchewanof 2011-12.in surplusoffunds from Agricultural the Credit thanlastyear, $25.0primarilymilliona return todue forecast$46.5million.at$28.0 million Thisis lower Transfersfromother allgovernment entities are Budget Summary | Budget 2012-13 41 O O tonne) 2 change in the average realized 2012 potash price 2012 potash realized in change the average in change million $142 in an estimated results and, royalties; potash in an estimated results dollar the Canadian resource in change non-renewable $34 million revenue. • a per per K KCl (C$82 US$50 tonne • a of 1 value in the U.S. cent change average MEdIuM-tErM GrF rEVEnuE outlook term is for the medium positive. outlook The revenue GRF revenue in 2012-13, 1.9 After per cent growth of an 4.2 to average per cent over grow is forecast medium-term The current years. three the subsequent of forecast in a GRF revenue results outlook is due largely The growth in 2015-16. billion $12.8 and non-renewable in taxation growth to strong in own- other growth modest with revenue, resource transfers. and federal of revenue sources of an average to increase is forecast revenue Tax All tax sources period. 5.2 per cent over the forecast due to over the timeframe to grow forecast are in the economy. growth continued to is forecast revenue resource Non-renewable of an 4.8 per average cent over the medium increase of anticipated the result is largely The term. growth in the of Potash value oil sales. and potash increases of levels capital lower from will also benefit royalties term as over the medium mine expenditures gas revenue, Natural completed. are expansions the over depressed to is remain expected however, period. forecast price results in an estimated $19 million change $19 in million an estimated results price in oil royalties; and the Resource Surcharge); and the Resource be fully realized in 2012-13 due in to 2012-13 lags in the be realized fully such as taxes income of some revenue, receipt Gross Domestic Product (GDP) results in an results (GDP) Product Domestic Gross in change own-source $97 million estimated of (the impact such a may not change revenue • in WTI oil change the average a US$1 per barrel The revenue forecast in the 2012-13 in Budget the 2012-13 forecast The revenue that impact a of assumptions series incorporates including performance, fiscal Saskatchewan’s economic U.S. and global on Canadian, assumptions and the prices value resource non-renewable growth, the beyond are factors These dollar. of the Canadian influence yet they heavily control, Province’s particularly sources, revenue largest Saskatchewan’s and Corporation revenue resource non-renewable Tax. Income and non-renewable performance economic Actual budget vary from will undoubtedly prices resource to linked these revenue As a result, assumptions. In recent estimates. budget vary will from factors pronounced. more has become this volatility years, on non- is reliant that Saskatchewan Recognizing the events, and external resources renewable revenue upon which assumptions underlying a of private number incorporate derived are estimates As risk. in to an minimize attempt forecasts sector in of risk present the degree is the budget developed, and and quantified, is assessed forecast the revenue year. the fiscal throughout continues this risk analysis that: it In is 2012-13, estimated • a 1 in per the of cent change level 2012 nominal rISkS to tHE 2012-13 rEVEnuE ForEcaSt 42 Budget 2012-13 | Budget Summary areprojected mediumaveragecentovertheperto28 shareatotal revenue,Asof non-renewable resources forecast non-renewaBleassumptions resource medium-term revenue grf revenueareexpected remain to relatively flatover Transfersfrom Crown entitiesother andown-source term. the mediumtheincreasetermand average anofat 1.5 per cent and 1.4 per cent,perrespectively.1.4centandper 1.5 Thesetwo categories,however, aresubject volatilityto overthe medium term as the resultmediumthetermas several of factors, includingGovernment decisions withrespect to Crowndividends, realized saleofthegainson Natural Gas Price (fieldgate, C$/GJ) (fieldgate, Price Gas Natural oahPie(ientak S/C on)43444947495 487 479 110.3 464 116.0 cents) (US Dollar Canadian 423 124.2 PotashPrice (mine netback, C$/K 135.6 PotashPrice (mine netback, US$/KCl tonne) barrels) (million Production Oil 153.6 (C$/barrel) Price Oil Well-head (US$/barrel) Price Oil WTI feet) cubic (billion Production Gas Natural Potash Sales (million K (million Sales Potash Billions of Dollars 10 12 14 0 2 4 6 8 1990-91 Federal Transfers 1995-96

2 O tonnes) O Other Own-Sources 2 on)69717978799 778 769 761 689 Otonne) 2000-01 011 021 031 041 2015-16 2014-15 2013-14 2012-13 2011-12 0.4100 0.8126 101.60 102.68 102.08 100.00 100.64 5. 7. 8. 9. 188.9 79.62 190.1 80.62 186.6 100.00 81.83 101.50 176.9 82.45 102.00 156.2 100.50 80.79 96.60 .929 .741 4.51 4.10 3.97 2.98 3.29 021. 061. 11.0 10.8 10.6 10.2 10.2 agreementsexpire. forecastperiodexistingas majorinfrastructure sharingagreements projectedis decreaseto overthe legislation.Revenuefrom federal-provincial cost- CanadaandSocial Transfer revenue, existingperas mainlyincreasesduetois CanadainHealth Transfer forecastcentovertheper1.5 of period.increaseThe Federaltransfers areforecast increaseto averagean casualrevenue. financialassetsunexpectedand miscellaneous and 2005-06 Taxes Non-Renewable Resources

2010-11 Forecast 2015-16 Budget Summary | Budget 2012-13 43 2015-16 2010-11 Education includes the Ministries of Education and Advanced Education, Employment and Immigration Social Services: 7.6% Agriculture: 3.8% Agriculture: Highways and Infrastructure: 3.8% Highways and Infrastructure: Education: 22.3% Benefits), $1.6 billion, or 14.3 per cent; $1.6 billion, Benefits), Debt Servicing: 3.6% 2005-06 Third-party capital transfers total $265.3 million million $265.3 total transfers capital Third-party the from increase an million in $86.1 2012-13, for accounts This increase Budget. 2011-12 growth. of points GRF expense 0.8 percentage by is in allocated GRF 2012-13 expense Total as follows: ministry • or 41.8 per cent; $4.7 billion, Health, • and Pensions Teachers’ (including Education Actual Forecast Other: 17.1% 2000-01 1995-96 Health: 41.8%

$11.2 billion $11.2 Total Expense: Total 1990-91

0

40 30 20 10 Per Cent Per By ministry composition of 2012-13 grf expense

2012-13 GrF EXPEnSE in to be is billion $11.2 GRF estimated expense or of million, $507.6 This is an 2012-13. increase Budget 2011-12 the restated 4.7 per from cent, Estimate. is transfers) capital (excluding expense Operating This is a in 2012-13. at billion $10.9 budgeted Budget the 2011-12 from increase million $421.5 of GRF points for 3.9 percentage and accounts in 2012-13. growth expense non-renewaBle resource share a as non-renewaBle revenue of grf revenue

44 Budget 2012-13 | Budget Summary Third-partyoperating transfers, $7.4billion, • follows: classification,By 2012-13expense allocatedis as remainingministries agencies,and $1.9billion, • DebtServicing, $400.0million,cent;per 3.6 or • HighwaysInfrastructure,and $425.9million, • Agriculture,$430.8million,cent;per 3.8 or • SocialServices,$852.7 million,cent;per 7.6 or • AdvancedEducation, Employment and • By ministry By reconciliationexpense grf 2012-13 Change in Operating Expense Operating in Change totalchange Expense TotalTransfersCapital Third-Party in Change Expense TotalOperating in Change Estimate Expense GrF 2011-12Budget Dollars) of (Millions 2 1 Estimate Expense GrF Budget 2012-13 or 66.4 per cent;66.4peror cent.17.1peror and, cent;per3.8or Immigration,$890.6million,cent;per 8.0 or Agriculture Immigration and Employment Education, Advanced The 2011-12 Estimate has been restated to be consistent. be to restated been 2011-12has The Estimate Includes Teachers’Includes Benefits and Pensions revenue. tax from deducted of instead expense GRF as recorded are vendors tax to paid commissions 2012-13, in Beginning Chief Electoral Officer Electoral Chief Servicing Debt Municipal Affairs Infrastructure and Highways Services Social Education Health Other Net Changes Net Other 2 1 (up 0.7 percentage0.7(up points). percentagepoints)third-partyto capitaltransfers percentagepoints)debtservicingand (down 0.3 government-deliveredprograms (down0.5 representsshiftingshares,thea of primarily from Compared2011-12thetoBudget, thisallocation Third-partycapitaltransfers, $265.3million, • Debtservicing, $400.0million,cent;per 3.6 or • Transfersindividuals,to $1.3billion, or • Government-deliveredprograms, $1.8billion, • or 2.4 per cent.per2.4or and, cent;11.5per cent;16.1peror 10,688.3 11,195.9 507.6 421.5 106.0 194.1 (20.0) (11.8) 31.1 86.1 13.0 21.3 25.2 28.1 34.5 Budget Summary | Budget 2012-13 45 include salaries Government-delivered programs and benefits, goods and services, and amortization Government Services: $58.1 million Transfers to Individuals: 11.5% to Individuals: Transfers Debt Servicing: 3.6% Health: $71.6 million Social Services: $25.8 million Third-Party Capital Transfers: 2.4% Capital Transfers: Third-Party Government-Delivered Government-Delivered 16.1% Programs: Municipal Affairs: $111.0 million Municipal Affairs: government-owned infrastructure. infrastructure. government-owned Other: $87.2 million • in for investments allocated million $522.4 has been invested $4.9 billion nearly 2008-09, Since This includes infrastructure. in the provincial for capital parties to third in transfers $2.8 billion in in and investments $2.1 billion requirements infrastructure. government-owned Education: $116.4 million $317.6 million Infrastructure: Highways and Transfers: 66.4% Transfers: Third-Party Operating Third-Party $11.2 billion $11.2 $787.7 million Total Expense: Total Total Capital Investments: Total (included in GRF expense); and, in GRF expense); (included By ministry 2012-13 capital investments 2012-13 capital By classification composition of 2012-13 grf expense

Total capital investments in 2012-13 are budgeted at budgeted are in 2012-13 investments capital Total from of million $192.8 an increase million, $787.7 Budget. the 2011-12 include: investments capital This year’s • parties to third grants in capital million $265.3 2012-13 GrF caPItal InVEStMEntS

grf capital investments

1,600 1,361

1,174 1,200

927 1,012 787 800 784 539 628 265 202 Millions of Dollars 400 522 426 349 388 390

0 2008-09* 2009-10 2010-11 2011-12 Forecast 2012-13 Budget

Government Capital Asset Acquisitions Capital Transfers

* Excludes $154 million that was subsequently used by recipients for operations in 2009-10

MEdIuM-tErM GrF Over the medium term, funding priorities will be EXPEnSE outlook addressed within the context of prudent fiscal planning. Expense growth is targeted at an average Against a backdrop of a growing population and of 4.0 per cent over the next three years, below economy, expense growth in 2012-13 has been held projected revenue growth of 4.2 per cent over the to the level committed to in last year’s budget, same time period. 4.7 per cent.

grf medium-term financial forecast

14

12.76 12.59 12.25 12.11 12 11.77 11.64 11.29 11.20

10 Billions of Dollars

0 2012-13 2013-14 2014-15 2015-16

| | Summary Budget Revenue Expense Budget 2012-13 Budget 46

Budget Summary | Budget 2012-13 47 84.0 (84.0) (84.0) 978.9 168.0 72.9 (72.9) (72.9) 894.9 145.8 65.6 (65.6) (65.6) 822.0 131.2 Over the remainder of the forecast period, revenue period, of the forecast Over the remainder 4.2 to per cent annually. average is forecast growth at 4.0 per cent per year. is targeted growth Expense year, each surpluses The GRF will post pre-transfer to the in GFSF over the medium transfers resulting term. to have a of balance The GFSF is projected at the end million of $978.9 2015-16. to debt is projected public general Government plan. over the four-year unchanged remain –––– 95.0 47.5 (47.5) (47.5) 756.4 3,810.2 3,810.2 3,810.2 3,810.2 2012-13 2013-14 2014-15 2015-16 11,290.911,195.9 11,771.3 11,640.1 12,251.5 12,105.7 12,757.8 12,589.8 requires requires Government debt Revenue from Transfer GFSF Net from Transfer (to) GFSF GrF Surplus GFSF Balance (Millions of Dollars) Expense Surplus Pre-transfer (deficit) Transfer (to) Transfer GFSF The Growth and Financial Security Act Security and Financial The Growth plan that sets out the financial a four-year and debt. revenue plan for expense, Government’s to the have a GRF is In surplus 2012-13, estimated to transfer a after million $47.5 of million $47.5 Fund (GFSF). Security and Financial the Growth in the balance GFSF is year-end The projected million $756.4 to be is debt estimated general Government from 31, unchanged 2013, on March $3.8 billion year. the previous Four-YEar FInancIal Plan grf four-year financial plan 48 Budget 2012-13 | Budget Summary GRF 2011-12GRF FoRecasts Financial be transferredbe Growththeto Financialand Security pre-transfertheHalfof surplus,$27.9million, or will $271.9million a increase revenue,in due • $331.1million a increase expense,in largely as • of: $59.2millionlessthanbudgetedresult theis and pre-transfera surplus$55.8million.of Thisis forecastrecordtracktoon is showsGRF thatthe currentThe 2011-12General Revenue Fund(GRF) 1-12 FinanCial TE aT D P u l a i C n a n i D F n u 2 F 1 - E u 11 n 0 E 2 v E R l a R E n E G e rnfrfo t)GS 6. 8. 1. 9. 29.6 297.1 (59.2) 312.5 55.8 2 289.1 1 25.0 Debt Government 267.5 Balance GFSF 71.7 GRF Surplus GFSF (to) Transferfrom Net 115.0 GFSF Transferfrom GFSF Transfer(to) (Deficit) Pre-TransferSurplus Expense Revenue Dollars) of (Millions expectedprices.oil disasterassistance fundinghigher-than-and assistfunding(CIC)toinflood relief, federal CrownInvestments Corporation Saskatchewanof primarilyunbudgetedanto dividend from the teachers’the settlement; partially offset by, resulta costsincurredof withfloodrelief and The 1st Quarter forecast and all subsequent forecasts reflect the actual March 31, 2011 level of $4,135.2 million. $4,135.2 2011of 31, level March actual the reflect forecasts subsequent all and forecast Quarter 1st The million. $1,006.0 of 2011-12balance actual opening the reflect forecasts subsequent all and forecast Quarter 1st The 1 2 siaeFrcs rjcinFrcs Budget Forecast Projection Forecast Estimate 06931,8. 09611,1. 331.1 271.9 11,010.4 11,066.2 10,926.1 10,951.1 10,786.7 10,858.4 10,679.3 10,794.3 ugtQatrMdYa ure from Quarter Mid-Year Quarter Budget ,1. ,1. ,1. ,1. (5.3) 3,810.2 3,810.2 3,810.2 3,815.5 8. 6. 3. 5. (29.6) 352.9 337.5 360.8 382.5 1. 1. 9. 0. (1.9) 708.9 693.5 716.9 710.8 2. 2. 2. 2. 0.0 325.0 325.0 325.0 325.0 5.)(59 1.)(79 29.6 (27.9) (12.5) (35.9) (57.5) will be in place in 2012-13.placeinin willbe beenrestated reflectto accountingnew standards that fiscalyear. forecastsThe tablethebelowhavenotin fiscalforecasts publishedas coursetheoverthe of followingThe tablesummarizes 2011-12theGRF $325.0millionfrom previous the year. $3.8billionMarchon decrease2012,31,a of Governmentgeneralpublicforecast debtis beto year-endbalance$708.9ofmillion. $352.9projectedmillionGFSFistheand havea to resultingThe surplusGRF2011-12forecastin is at proceed. withdrawalfromdebtreductionGFSFfor the will Fund(GFSF).budgetedThe $325.0 million 1st r Change 3rd Budget Summary | Budget 2012-13 49 their sales taxes with the GST, since those taxes apply taxes those since with the GST, taxes sales their of range and services goods to a much broader by families. purchased to of agriculture of the importance In recognition fuel tax exemption the Province’s Saskatchewan, fuel, diesel to farm-use treatment tax-free provides tax and a partial program, a fuel-colouring through when purchased gasoline for farm-use exemption in bulk. applies tax system income personal Saskatchewan’s to taxable tax directly rates marginal provincial tax purposes. income for as federal income defined to the federal that contribute deductions As a result, such as the income, of taxable determination Plan Savings Retirement for Registered deduction tax income Saskatchewan also affect contributions, of deductions of these The several impacts revenue. in this paper. estimated are tax income personal Saskatchewan’s In addition, income non-refundable provincial has distinct system circumstances the personal recognize that tax credits credits, family-based including of the taxpayer, This credits. and educational credits disability-related impacts of the revenue estimates also provides paper tax non-refundable of of provincial these several credits. taxes, of corporate the distribution improve To a tax rate on levies income lower Saskatchewan tax and rate on a income special businesses small profits. (M&P) and processing manufacturing Investment a refundable also provides Saskatchewan that to M&P (ITC) companies assist Credit Tax new or for use used M&P in assets invest qualifying in Saskatchewan. SASkATCHEwAN’S TAX EXPENDITURES and the sales taxes of provinces that have harmonized and of the taxes sales provinces consuming these basic items. This treatment is in This treatment items. basic these consuming (GST) Tax and to Goods Services the federal contrast basic items such as food, residential natural gas, natural such as residential items basic food, and reading clothing children’s electricity, residential the paid by taxes families reducing thereby materials, Saskatchewan’s sales tax sales does not to apply certain Saskatchewan’s have become fundamental elements of the tax elements system. fundamental have become pursuing these objectives, some tax expenditures objectives, these pursuing promoting certain types of economic activity. In activity. of types economic certain promoting such as enhancing the fairness of the or the tax fairness system such as enhancing Tax expenditures can achieve a of can achieve number objectives, expenditures Tax THE RATIONALE FOR TAX EXPENDITURES Although the primary purpose of taxation is of to taxation raise purpose the primary Although some of social also attain their governments revenue, paid by the taxes by goals reducing and economic commonly are reductions These taxpayers. certain such measures and include “tax expenditures” called preferential tax credits, deductions, as exemptions, or special Each provides tax and rates deferrals. or to taxpayers to certain treatment preferential provide they together, Taken of types activity. certain and families to a of individuals, variety assistance and citizens senior farmers, including businesses, businesses. small in the absorbed usually are tax While expenditures in not presented and are estimates revenue overall they programs, spending the same way as direct by a generated of the amount revenue reduce fiscal a and government’s they affect government expenditures. in the same way position as direct INTRODUCTION 50 Budget 2012-13 | Budget Summary definitiontaxableofincome,federal the manyoftax corporateincometaxesare basedfederal uponthe federalsystem.taxSince Saskatchewan’s personal and presentationexpenditurestaxon thatarepartthe of federalThegovernment produces detaileda EXPENDITURES TAX CANADA OF GOVERNMENT Finally,expenditurestax createmay increased • Third,expenditurestax createmay distortions in • Second,expenditurestax thetoaddmay • First,thereforgonecostofthe is revenue. Tax • takeseveralforms. expenditureresults associatedin costs.Thesecosts economicobjectives, introductionthe taxanyof Whileexpenditurestax importantserve socialand COSTS ASSOCIATED expendituresimpactSaskatchewan’shaveanon revenue.Readersinterested examiningin federalthe government’spresentation expenditurestaxof are invitedcontacttoFinancethe Canada Distribution (click“Publicationson Reports”).& CentreOttawavisitwebsitetheinorwww.fin.gc.ca consumers. compliancecostsbothbusinessesfor and thiscategoryconsumerof expenditure. snackfoodsprovides preferential treatment for example,exemptionthe restaurant for mealsand consumerotherandeconomic behaviour. For governments.and increasedadministrative effort bothtaxpayersby complexitysystem,taxtheleadingof to government’sfinancial position. collectedsignificanthaveaand impacta on expendituresresultreduction thein revenueof Canadadata. 2012,calculatedin usingcollectiontax Statisticsand expenditurestax Governmenttheof Saskatchewan of followingThe tablesprovide estimatesmajorthe of indexationSaskatchewan’sof personal income • personalnew aincome credittax first-timefor • non-refundable new creditstax Researchthefor • extension theProvincialthe of SalesTax • expenditurestaxThe report 2012incorporates:for separatein papersthein November2011,whichare described greater in detail initiativesnumbernewofa introduced since 2012SaskatchewanThe expenditurestax include EXPENDITURES TAX SASkATCHEwAN 2012 of 2.8 per cent.per2.8of systemreflecttax2012,forto inflation,rate a at homebuyers;and, Estimates); reflectedprogramas expenditures thein refundablecreditstax willcontinuebe to RetentionProgram Tax Credit (theassociated Developmentand Tax Credit Graduatetheand under;and includetopurchases childrenallfor aged17 exemptionchildren’sfor clothingfootwear and BudgetSummary document. Budget Summary | Budget 2012-13 51 – Restaurant meals and snack foods...... – Basic groceries...... 60.4 116.0 – Construction ...... – Other...... 415.6 32.0 1. Registered Pension Plan contributions...... 2. Registered Retirement Savings Plan contributions ...... 81.6 154.0 1. Exemption for farm activity ...... 2. Exemption for heating fuels ...... 3. 121.6 Exemption for primary producers ...... 25.3 1.4 1. Children’s clothing and footwear ...... 2. Prescription drugs...... 3. Electricity...... 10.3 4. 33.2 Farm machinery and repair parts ...... 5. 41.0 pesticide Fertilizer, and seed ...... 6. Food 80.3 122.7 7. Natural gas ...... 8. Reading materials...... 9. 24.0 Services 9.4 3. Annual union, professional or like dues...... 4. Child care expenses ...... 5. 15.9 Moving expenses...... 6. Carrying charges ...... 9.6 7. Allowable employment expenses ...... 2.3 8. 14.0 $750,000 capital gains deduction ...... 15.1 49.0 11. Light used vehicles ...... 48.9 10. Used goods – exemption amounts...... 12. Direct agents...... 1.2 13. Eligible energy efficient appliances, furnaces and boilers...... 14. 18.6 telephone services...... Toll-free 15. Municipal fire trucks...... 2.9 16. Mineral exploration equipment...... 0.3 0.1 0.1 Personal Income Tax Deductions from Income Fuel Tax Sales Tax Exemptions (Value of Tax Expenditures in Millions of Tax of Dollars) (Value 2012 Government of Saskatchewan Accounts Expenditure Tax 52 Budget 2012-13 | Budget Summary Corporation Income TaxIncome Corporation TaxSaskatchewan Other Measures 40.7 ...... credit tax contributions Charitable 15. TaxNon-Refundable Saskatchewan Credits 6 is-iehmbyr’txcei...... 6.6 credit...... homebuyers’tax First-time 23.3 16. 2.1 ...... credit tax expenses Medical 12.1 14. credit...... tax Caregiver 13. credit...... tax Disability 26.9 12. credit...... tax education Tuitionand 10. 1 tdn onitrs a rdt...... 1.1 credit...... tax interest loan Student 11. .Rsac n eeomn a rdt...... 5.0 60.0 TaxDevelopment and Research Credit...... 10.0 5. 1.0 Processing...... and Tax Investment Manufacturing for Credit 4. TaxProfits Processing and Reduction...... Manufacturing 351.2 3. Tax Royalty Rebate...... 2. business...... small for rate tax Lower 1. 34.7 0.7 1.0 ...... TaxProgram Retention Graduate Credit 6. 0.5 TaxContributions Political Credit...... 5...... Employees’Tool Tax Credit 17.0 4. TaxExploration Mineral Credit...... 80.0 3. VentureTaxCapital Labour-sponsored Credit...... 2...... TaxLow-Income Saskatchewan Credit 1. 10.1 22.6 ...... credit tax income Pension 70.5 9...... credit tax premiums Insurance Employment 71.7 8. credit...... tax contributions Plan Pension Canada 12.0 7...... credit tax child Dependent 32.6 6. credit...... tax age the to Supplement 18.1 5. credit...... tax Age 40.1 4...... credit tax Equivalent-to-spouse 904.4 3...... credit tax Spousal 2...... credit tax personal Basic 1. Budget Summary | Budget 2012-13 53 in total provincial taxes, the second-lowest tax the second-lowest taxes, in provincial total level; the second-lowest taxes, $744 in provincial total and, tax level; the second- taxes, in provincial $3,965 total tax level. lowest The 2011-12 Budget announced, for the 2011 announced, Budget The 2011-12 to and the basic a increase $1,000 year, taxation and a amounts $500 per child exemption spousal children. for dependent to the exemption increase supplemented tax reduction income This personal which tax reduction, 2008 income the Government’s amounts exemption the and basic spousal increased child the dependent by each and increased $4,000 of and by per the child, indexation amount $2,000 rate to tax system the income national the personal 2007 to 2012. from of inflation and individuals in Saskatchewan As 2012, a result, very are that taxes pay provincial total families cities. paid in with those Canadian other competitive • pay will $1,103 $25,000 earning A person single • will pay $50,000 earning family A two-income • will pay $75,000 earning family A two-income cities with other favourably also ranks Saskatoon and taxes provincial in when comparing Canada situations, family representative For all three utilities. overall as the ranks lowest having Saskatoon of the 10 surveyed. and taxes utilities cities combined and housing utilities taxes, When the combined considered, are families of costs the representative with other very favourably compares Saskatoon cities. Canadian utIlItIes and housIng with an annual income of with an income $25,000; annual its own with an owning home, annual children, and, of income $50,000; family its own with an owning home, annual children, of income $75,000. family 2012 IntercIty comparIson of taxes, income. income. A number of factors contribute of to life the quality contribute A of factors number in Saskatchewan and families by individuals enjoyed to access excellent For example, Canada. and across is a services and social key part education care, health of life. of quality the overall of life are: quality that affect factors important Other • the of level taxation; • and, and auto insurance; cost of utilities • and mortgages. for rent costs household taxes, cost of provincial the combined Calculating the way to is compare and a housing reliable utilities of Canada. parts of in living different attractiveness the cost total of For such a the purposes comparison, for representative and housing of utilities taxes, such largest Saskatchewan’s in living Saskatoon, families families with the those costs has been compared city, the country. across face in cities would major other costs and housing utilities taxes, The provincial characteristics family the with following associated a to provide have been calculated levels and income comparison: representative • accommodation, in living rental a person, single • a of and family two two adults dependent • a of and family two two adults dependent to is of The be income the assumed two families 60 with one per cent earning by earned both spouses, 40 and per the earning cent of other family total 54 Budget 2012-13 | Budget Summary Tax Credits and elhPeim 0 0 307 Health Premiums Provincial Provincial Taxes and Health Premiums total of taxes, Rent 1,957 1,439 Total Household Auto Insurance 90 311 Total Provincial Gasoline Tax (ValuesDollars) in Total$25,000 at Person Income Single Taxes,of Housing Comparison and Intercity Utilities 2012 Housing Costs total taxes Electricity Household Utility Costs ealSlsTx630 623 Retail Sales Tax Telephone Taxes and Health Rebates noeTx47620 437 Income Tax utilities and housing 3,003 2,095 and utilities Utility Costs 710 1,533 Premiums acue agr akto inpgtrnomnra onhlfxtw st. John’s town halifax John montréal toronto calgary saskatoon Winnipeg Vancouver 51614,501 15,196 15810,788 11,568 ,2 3,713 3,628 15 0 (145) 4 755 344 1 291 312 12,514 9,444 3,070 1,967 1,103 (229) 939 991 150 243 718 258 0 1231,4 1941,7 4191,7 13,518 12,277 14,109 11,173 11,904 18,946 11,243 ,0 1 ,8 ,1 ,1 ,4 1,174 1,545 1,318 1,018 1,583 711 1,603 ,3 1747626849067247,992 7,224 9,036 6,864 7,692 11,724 8,136 ,0 ,2 ,1 ,0 ,7 ,5 5,526 5,053 3,404 5,073 2,752 4,309 2,920 4,212 2,444 7,222 2,181 2,122 3,107 5,800 2,301 1,663 2,153 1,865 2,031 1,422 1,444 70 46 57 (245) 0 (597) (476) (700) 8 ,8 ,1 ,7 ,1 ,8 2,491 1,589 1,911 1,579 1,514 4,787 985 2 4 7 4 2 9 783 598 925 740 878 740 426 8 4 9 9 0 6 647 865 705 597 396 742 383 9 7 7 6 0 9 266 298 304 268 271 271 295 1 4 6 0 5 5 165 158 155 107 167 147 115 300 0 00000 an charlotte- saint 00 Budget Summary | Budget 2012-13 55 00 (88) saint charlotte- 00000 00000 00 0 300 295 271 271 268 304 298 266 230 294 334 214985 310 4,787 316 1,514 1,579 330 1,911 1,589 2,491 985 933 1,563 1,964 1,650 2,672 2,643 614 1,132 586 915 1,146 1,302 998 (700) (362) (109) (102) 2,879 7,1235,920 3,934 9,6468,283 4,726 9,143 15,536 5,011 9,240 8,238 5,861 10,355 5,550 10,827 6,398 8,058 11,166 4,973 7,202 2,728 2,999 3,083 2,701 2,332 2,600 1,422 1,318 2,179 2,624 2,179 2,724 1,853 2,322 3,041 2,523 5,209 4,514 5,344 4,966 4,768 2,302 214 2,251 2,121 2,398 2,797 2,116 11,011 18,535 11,321 8,251 10,390 7,573 8,624 16,931 28,181 20,464 17,491 20,745 18,400 19,790 0 751 744 258 300 991 301 881 (308) (300) 3,221 3,965 2,614 1,091 12,649 16,614 10,035 00 569 1,173 312 291 (123) (832) 8,108 4,678 27,852 14,352 35,960 19,030 Vancouver Winnipeg saskatoon calgary toronto montréal John halifax townJohn’s st. utilities and utilities Costs housing Utility Costs Utility utilities and 3,412 4,272 Premiums 4,696 406 Income Tax Income 833Benefit 1,058 Rebates Taxes and Health and Taxes total of taxes, of total Retail Sales Tax Sales Retail 1,828 0 total taxes total Costs Housing Costs Mortgage 25,131 12,238 Total Provincial Provincial Total Household Total Taxes Property Net 2,721 2,114 Auto Insurance Auto 1,439 1,957 Gasoline Tax Gasoline 622 180 (Values in Dollars) (Values Housing Total 2012 Intercity Comparison of Taxes, 2012 Utilities Intercity and Comparison Housing of Taxes, Income Family at $50,000 Total Provincial Taxes and Health Premiums Health and Taxes Provincial Provincial Families Active Premiums Health 1,536 0 Household Utility Costs Utility Household Heating Home Electricity 1,092 851 Telephone Tax Credits and Credits Tax 56 Budget 2012-13 | Budget Summary Active Families Tax Credits and Provincial Provincial Taxes and Health Premiums elhPeim ,3 0 1,536 Health Premiums e rpryT xs2712,114 Total Housing 2,721 Net Property Taxes 1,957 1,439 Total Household Auto Insurance 180 622 Total Provincial Gasoline Tax (ValuesDollars) in Total$75,000 at Family Income Taxes,of Housing Comparison and Intercity Utilities 2012 otaeCss2,3 12,238 25,131 Mortgage Costs Housing Costs total taxes 851 1,092 Telephone Electricity Home Heating Household Utility Costs ealSlsTx2490 2,479 Retail Sales Tax total of taxes, Taxes and Health noeTx2333,270 Benefit 2,353 Rebates Income Tax housing Costs 4,272 3,412 and utilities Utility Costs 3,450 6,990 Premiums utilities and acue agr akto inpgtrnomnra onhlfxtw st. John’s town halifax John montréal toronto calgary saskatoon Winnipeg Vancouver 82422,074 38,254 14,352 27,852 7,722 10,402 1 291 1,173 312 569 00 00 19,835 12,649 10,035 2,923 2,614 1,091 7,186 3,221 3,965 1,042 (300) 991 300 881 258 0 0 0403,0 5712,9 4672,7 22,979 21,879 24,687 20,796 25,711 32,106 20,410 1 011,3 1318211,9 ,7 8,624 7,573 10,390 8,251 11,321 18,535 11,011 ,9 ,5 ,9 ,5 ,7 ,0 4,492 5,601 5,371 4,650 6,596 2,551 5,297 ,2 ,9 ,8 ,0 ,3 ,0 1,422 2,600 2,332 2,701 3,083 2,999 2,728 ,8 5568285508084937,202 4,973 8,058 6,398 14,355 5,550 14,306 5,861 8,238 14,297 5,011 15,536 12,545 4,726 8,283 14,390 13,571 3,934 9,399 7,957 7,123 8,445 2,879 9,286 7,819 10,456 6,448 6,520 ,0 ,5 ,2 ,5 ,9 ,2 3,135 2,528 3,693 2,955 3,526 2,955 1,802 (700) 19 (102) (109) 8 ,8 ,1 ,7 ,1 ,8 2,491 1,589 1,911 330 1,579 1,514 316 4,787 310 985 214 334 294 230 1 ,3 8 1 ,4 ,0 998 1,302 2,643 1,146 2,672 915 1,650 1,964 586 1,563 1,132 933 614 985 9 7 7 6 0 9 266 298 304 268 271 271 295 750 0 000000 00 00000 an charlotte- saint (88) 00 Budget Summary | Budget 2012-13 57 (Statistics of natural gas. For of natural 3 are annual premiums for hospital premiums annual are is based upon average family is upon average based is based is on index based a composite charges are based on based an annual are charges is based on annual consumption of is on consumption based annual charges are the basic service rates for rates the service basic are charges charges are based on based an annual are charges Survey of Family Expenditures in 2009 Expenditures of Survey Family Canada). The sales tax base in each province was The tax in sales base province each Canada). with total legislation, the enacting from identified Saskatchewan to reflect adjusted expenditures taxes sales retail Provincial patterns. consumption expenditures on based taxable then estimated were The tax sales rate in was Québec in province. each 8.5 to 9.5 per from cent effective increased 1, January 2012. Tax Gasoline for by and litres 2,000 a person, single litres 1,000 levied charges include Figures each of the families. as well as taxes carbon commissions by transit of gasoline. to the applied purchase Heating Home of level m 2,800 consumption Health Premiums Health Columbia British services. and medical insurance 1, January 2012. effective premiums health increased Tax Sales Retail expenditure baskets at the total income levels from levels at the income baskets total expenditure the Charlottetown and St. John’s, the figures represent represent the figures and St. John’s, Charlottetown of fuel oil. consumption the BTU equivalent Electricity of level kWh 4,584 for the renter consumption and kWh 8,100 for the homeowners. Telephone residences. individual Insurance Auto the developed after index by SGI modelled developed The of index Canada. Association by the Consumers’ for what quoted rates is on based insurance the actual if they had pay in would the driver each jurisdiction history same claims same coverage, the same car, in point at time. a consistent record and driving of developed Canada Association The Consumers’ of The impact “Good this index. to create 34 profiles in for all has been factored discounts/rebates Driver” jurisdictions. applicable refer to refundable refer refers to the Saskatchewan refers is calculated for an individual is calculated provide non-refundable children’s fitness tax credits. fitness children’s non-refundable provide than 16 years of age. Manitoba and than 16 Nova Scotia of years age. Manitoba rebates up for to cultural, $51 per annually child rebates less fees for children activities and sports recreational Ontario also has a refundable income tax credit that tax credit income also has a Ontario refundable $150 per child annually for cultural, recreational and recreational for cultural, $150 per annually child age under 18. fees for children activities sports administered through provincial income tax systems). income provincial through administered Benefit Families Active refundable income tax credit that rebates up to that rebates tax credit income refundable Tax estimates are calculated for the 2012 calendar calculated are estimates Tax 5, 2012. as of changes known March year using services for utility the basic charges Household and auto telephone electricity, heating, (home of the actual a cost comparison represent insurance) This year. for rates the 2011 calendar utility ‘known’ due has to been chosen the uncertainty methodology for rates the coming utility to forecast of attempting GST, federal exclude figures The utility year. and taxes tax sales and municipal provincial surcharges. Tax Income Provincial with $50,000 and two income families with $25,000 It that is assumed respectively. income and $75,000 at by is a income earned both spouses family 60 per cent to 40 per and cent ratio that the families for two expenses in care $3,000 child each claim 6 (ages and Personal 12). children dependent the CPP/QPP used include credits non-refundable Personal Québec Gross credits. and EI contribution by Child the Québec has reduced been Tax Income and by the 16.5 per cent Credit Tax Expense Care tax. income federal from abatement and Rebates Credits Tax to designed and rebates tax credits income provincial payments tax, rental sales of the impact retail reduce plans tax rebate property (those taxes and property Taxes, UTiliTies and HoUsing – noTes 58 Budget 2012-13 | Budget Summary 2011 determinedas fromRoyal theLePageThird Quarter averagethedetachedonof bungalows thatcity in Charlottetownwhoseproperty estimatetaxbased is UtilityandCharges Survey, EdmontonCityofthe estimatedsampledetachedtaxesafor bungalow from PropertyNet Taxes cent.per3.5 one-yearayears closedat25mortgage rateof withone-halfhomepricethebeingfinanced of over ThirdQuarter 2011 detachedafor bungalow, fromRoyal theLePage MortgageCosts Report, MortgageHousingandCorporation’s rentseachmetropolitanfor area, fromCanada the Rent amounts. propertyfigurestaxproperty net arrivethetoat tax propertynoticestaxhavebeendeducted from the creditprograms administered municipalitiesby on includedpropertythein figures.tax Property tax municipal,education libraryandproperty taxesare is based on averagebasedonisone-bedroom apartment SurveyCanadianof HousePrices. October2011. areaveragebasedonhomeprices SurveyCanadianof HousePrices, for all citiesallforare the based on 2010Residential Property Taxes with the exceptionwiththe of RentalMarket All provincial,All Budget Summary | Budget 2012-13 59 separately from other government debt because they debt because government other from separately generated cash flows from to be expected repaid are enterprises. by business these as debt is classified corporation All Crown other This debt includes debt. general corporation Crown activities business from that can be amounts repaid that can only be and amounts sector of the Crown government. from with assistance repaid by million $119.7 to increase debt is Public forecast by an additional and increase 2011-12 during in 2012-13. million $1,019.2 to decline debt is forecast public general Government unchanged and remain in 2011-12 by million $325.0 in 2012-13. debt is forecast public general corporation Crown and 2011-12 during by to million $39.7 decline The 2012-13. during by million $154.6 increase due to primarily in are both years changes Crown debt for the utility in short-term fluctuations corporations. debt public specific enterprise business Government during by million $484.4 to increase is forecast million $864.6 by an additional and increase 2011-12 in are both years The increases 2012-13. during debt for the to long-term higher attributable largely corporations. Crown utility Public Accounts. Public 2012-13 borrowing and debt less lenders; lenders; of debt. has been set for aside the repayment to individuals and organizations outside government outside and organizations to individuals borrowed Amounts activity. as principal their disclosed are for enterprises these specifically and operating authority to sell goods and services to and sell goods services authority and operating The General Revenue Fund (GRF) borrows for borrows Fund (GRF) Revenue The General corporations. and Crown government financial in the Province’s as debt Public reported of: is comprised statements • debt – of to the owed money amount Gross • – funds of which the amount money Sinking paper. in this budget debt is Public discussed for the responsible are corporations Crown on Crown debt. their payments and interest principal in course the normal debt is incurred corporation in infrastructure for investment primarily of business, provide which initiatives development and business to the debt. service streams revenue into two debt is divided corporation Crown debt and general corporation Crown components: This debt. specific enterprise business government with the way consistency has been done to provide in the segregated are amounts these self-sufficient are enterprises business Government that have the financial organizations government 60 Budget 2012-13 | Budget Summary as at March 31 March at as funD revenue general the of Debt Public 31 March at as funD revenue general the of Debt Gross Debt Gross general government Dollars) of (Millions Billions of Dollars debt guaranteed debt Public Specific enterprise business government Funds Sinking Debt Gross Specific enterprise business government debt Public general Corporation Crown Funds Sinking Debt Gross general Corporation Crown debt Public general government Funds Sinking Public debt Public 10 12 0 2 4 6 8 2008 10.2 2.9 6.8 0.5 2009 7.7 0.5 3.1 . . 4.1 4.1 4.1 General Government 2010 3.1 0.8 8.0 2011 3.4 0.6 8.1 General Crown Corporation 2012 3.8 3.8 0.6 8.2 2013 0.7 3.8 4.8 9.3 siae oeatactual Forecast estimated Enterprise Specific Business Government ,2. ,5. 3,373.8 3,858.2 4,722.8 ,0. ,1. 6,111.7 5,910.9 5,007.7 ,5. ,3. 8,118.1 8,237.8 9,257.0 3,794.8 4,355.3 5,269.7 4,135.2 1,976.5 3,810.2 2,100.7 3,810.2 1,197.5 5. 2635.4 92.6 421.0 152.1 497.1 609.1 546.9 643.4 569.4 612.1 724.0 772.1 2014 0321 2011 2012 2013 10.1 814. 34.3 42.7 48.1 5.6 3.8 0.7 2015 10.4 5.9 0.7 3.8 2016 10.6 6.1 3.8 0.7 Budget Summary | Budget 2012-13 61 7.0 0.8 4.4 12.2 2016 0.9 4.5 7.0 12.4 2015 0.9 4.7 6.8 12.4 2014 Government Business Enterprise Specific 0.9 4.8 6.1 2013 11.8 0.8 5.3 5.3 11.4 2012 Crown Corporation Crown General 1.0 6.4 5.3 12.7 2011 1.4 7.0 5.2 13.6 2010 Government General 6.2 0.8 4.5 11.5 2009 5.7 0.9 20.0 13.4 2008

5 0

20 15 10 Per Cent Per generaL reVenUe FUnd borrowing are requirements borrowing 2012-13 The Province’s to compared to million, be $1,328.4 estimated in 2011-12. of million $661.0 requirements forecast in 2012-13, for government requirements Borrowing forecast: (2011-12 to be million $204.0 estimated of for the refinancing purpose are million), $76.3 debt. maturing in corporations for Crown requirements Borrowing (2011-12 to million be $1,124.4 estimated 2012-13, to with assist primarily are million), $584.7 forecast: expenditures. capital financing as at March 31 grf Public % a as Debt of gDP 62 Budget 2012-13 | Budget Summary Surplus(on accrual accountingbasis) decreasegovernmentin generalPublic debt 4. 3. 2. 1. by: reconciled is change will debt public general government which by amount the and surplus the between difference The accounting. of basis accrual the under reported surplus the than lower or higher be may change will debt public general government which by amount The CashProvidedoperations by Cash availablereducetodebt addingchanges in sinking funds the determine to activities other and investment loan, from outflows and inflows cash of amount requirements cash other subtracting or sources cash other adding acquisitions; capital for required cash for adjusting operations; from provided cash the determine to expenditures and revenues basis cash a to surplus the adjusting 4. Change in Sinking Funds Sinking in Change 4. Basis Cash to Adjustment 1. .Capital Acquisitions 2. 3. Other Cash Sources Cash Other 3. • Other • • Change in Cash Balance Cash in Change • Repayment Equity CIC • Proceeds Fund Sinking • cash available to reduce debt; reduce to available cash change in government general Public Debt Public general government in change reconciliation of surplus and surplus of reconciliation whichwill be used to repay government general public debt. and, to recognize the amount and timing of non-cash of timing and amount the recognize to 1,045.8 150.0 3.)1150(82 520.0 (28.2) 1,115.0 (36.2) (44.6) estimated 2012-13 (903.2) (522.4) 263.1 310.6 903.2 47.5 0.0 ($ Millions) ($ to recognize the recognize to 451.2 97.0 0.0 Forecast 2011-12 (246.2) (426.0) 124.3 352.9 325.0 106.7 200.7 Budget Summary | Budget 2012-13 63 24.5 22.7 375.5259.1 387.3 659.1 233.8 643.8 2012-13 2011-12 estimated Forecast 41.2 29.7 29.1 2013 2012 2011 389.1 246.8 229.5 3,810.25,446.8 3,810.2 4,427.69,646.1 4,135.2 3,982.9 8,484.6 8,347.6 9,257.0 8,237.8 8,118.1 estimated Forecast actual The 2012-13 debt servicing cost estimates are based are estimates cost debt servicing The 2012-13 and 4.5 per cent long-term on 1.5 per cent short-term in increase point A rates. one percentage interest in assumed for levels rates a full year from interest cost of the estimated increase would the budget by debt in 2012-13 government servicing $8.8 million. approximately of Debt on Schedule page 86 The Summary debt of public government the combined calculates both the GRF by debt and listing the debt entities to entities. other Summary Statement of guaranteed debt GRF Public Debt for Crown Corporations Other Debt Summary Statement of debt (Millions of Dollars) GRF Public Debt for Government Government Business Enterprise Specific Debt Cost of total Servicing gross debt (Millions of Dollars) Government General Debt Crown Corporation General Debt GRF Public Debt suMMary stateMent of Debt stateMent suMMary as at March 31 SUmmary Statement oF debt by the GRF all debt borrowed GRF debt includes or the purposes purposes government for either Some Crown corporations. Crown of certain have additional and organizations other corporations The GRF is to not entities. other obligations debt. for this other responsible In addition to interest payments, debt servicing costs debt servicing payments, to In interest addition such debt, to the gross related all charges include and discounts, of premiums, as the amortization currency on and or gains foreign losses commissions, a in change the of value from the debt that result dollar. Canadian CoSt oF SerViCing debt cost of servicing Debt 64 Budget 2012-13 | Budget Summary Growth and Financial Security Fund ForecaSt Fund SecurityFinancial Growth and provide to sourcea fundsthatareofbe to • achievementassistthe toin Government the of • twofold: FinancialSecurity Act. establishedwas assentwiththeof GrowthThe Financialand Security Fund(GFSF) SeCuRiTy d N u F y T i R u C e S l a i C N a N i F d N a h T w o R G e rnfr t)fo h R 271 756. 2984.0 72.9 65.6 47.5 (297.1) 2010-11balance. actual closing reflects 2011-12 balance opening * Balance Closing GRF the from Transfers(to) Net GRF the Transfersto Less: GRF the Transfersfrom Plus: Balance* Opening Dollars) of (Millions economicdevelopment Saskatchewan.of identifiedpromotingas enhancingor the programsGovernmenttheof Saskatchewan of availableappropriationfor usedforbeto and, GovernmentSaskatchewanof fromyear; yearto providingfinancialthefor security the of Saskatchewan’sof long-term objectives by fnnilscrt/etrdcin (325.0) reduction) security/debt (financial 5%o R r-rnfrsrls 794. 567. 84.0 72.9 65.6 47.5 27.9 surplus) pre-transfer GRF of (50% The purposeGFSFisThetheof The GrowthThe and 011 021 031 041 2015-16 2014-15 2013-14 2012-13 2011-12 ,0. 0. 5. 2. 894.9 822.0 756.4 708.9 1,006.0 0. 5. 2. 9. 978.9 894.9 822.0 756.4 708.9 to be $756.4bemillion.to 2012-13forecastofGFSFbalanceendisThethe at twofoldpurpose. objectivewiththeachieving of aforementionedthe minister,subjectapprovaltheto Treasury of Board, Transfersthemadebybe GFSFmaythe of out subjectapprovaltheto Treasury of Board, the • pre-transferanycentofper 50 surplusanyfor • Subsequently,transfersGFSFrepresentthe to either: the ministerthe (special transfer). receivedfiscaltheforyear, determinedas by amountsignificant,of unexpected revenues fiscalyear(required); or, –––– Budget Summary | Budget 2012-13 65 fiscal year (required); or, year (required); fiscal to subject by the Fund (GFSF) minister, Security for the purpose Board, of Treasury the approval of objective in the of long-term assisting the debt. eliminating Allocations to the DRF represent either: to the DRF represent Allocations • for any surplus 50 per cent of any pre-transfer • and Financial made out of a the transfer Growth at The DRF the balance end is of forecast 2012-13 to be $3.3 billion. 352.9 47.5 65.6 72.9 84.0 3,213.9 3,261.4 3,327.0 3,399.9 3,483.9 2,861.0 3,213.9 3,261.4 3,327.0 3,399.9 2011-12 2012-13 2013-14 2014-15 2015-16 DeBt RetiRement FunD The Growth and Financial Security and Financial The Growth The DRF is an accounting of the surpluses of of the The DRF the is surpluses an accounting Closing Balance * opening balance 2011-12 reflects cumulative GRF surpluses over the 2008-09 period. to 2010-11 (Millions of Dollars) Opening Balance* Plus: GRF Surplus The Debt Retirement Fund (DRF) was Fund (DRF) established The Debt Retirement of with the assent to allocated that are Fund (GRF) Revenue General the fund on of or 1, April The the purpose after 2008. objective DRF the long-term is to in assist achieving in eliminating of Saskatchewan of the Government the debt. Act. Debt RetiRement FunD FoRecast 66 Budget 2012-13 | Budget Summary combinedexpectedwiththerental lossof unitsdue impactSaskatchewan’sof increasing population, rentalof housingprovince.thein However, the Thisuptakewillsignificantly improve availabilitythe exceeding6,200units. applicationsrentalnewfor unitconstruction Thisincentivesuccessful, beenveryhas with similaraincentive from participating municipalities. $5,000rentalnewtoperup matched unitthatisby Incentiveprovideto developersprovincial a grantof Governmentintroduced RentaltheConstruction 2011-12partthewell,asofBudget,As the processes. communityplanningimproving and utilityservicing federalthegovernment, supporting long-term affordablein housingprojects partnershipin with Actionsdatehaveincludedtakento direct investment increaseto housingtheprovince.supplythe in Saskatchewanundertakenhas aggressivean strategy BACKGROUND withenacting legislation confirmtospecific details. Budgetinitiatives, readerthe advised consultisto Whilethispaperprovides detaileda summarytheof accessaffordabilityand housingforSaskatchewan.in introducingis 2012-13theinBudgetimprove to Thispaperdescribes measuresnew Governmentthe ratesfuture.intothe continuepressureputto Saskatchewan’son vacancy conversionandageto condominiums, to will TIvES E v I AT I T I N I G N I S U O H 3 1 - 2 1 0 2 to accessrebate.taxtothe fromowningtherentingand thathousingorderofin clearlyabletoidentifymustbe and income earned retainownershipeligiblethe ofrental new housing eligibletherental new housing. However, mustit rentalnew housingand/or businesstherenting of withanotherparty constructionthefor eligible theof eligibleAn corporation permittedwillbecontract to qualify. eligiblerentalnew housingSaskatchewanin can solelyengagedconstructionthein rentaland of permanentestablishment Saskatchewanin areand privateAllpublicand corporations thathavea Corporations Eligible becomeavailable rent.for consecutivetento up of yearsonceeligible projects projects.rebatetaxTheperiod earned a willbefor corporationsratefor thatinvesteligiblein rental rebatethatwillsignificantly reduce effectivethe tax projects.incentiveThisnewprovided willbetax a as newlyconstructed qualifying multi-unit residential Taxrateleviedincomeonearned from rental the of pointreduction generaltheinCorporation Income announcingintroductionthe percentagetena of responseadditionalneedfortheto housing by 2012-13TheBudget continues Government’swiththe HOUSING RENTAL NEW ON REBATE TAX INCOME CORPORATION Budget Summary | Budget 2012-13 67 . or, (Canada) Income Tax Act Tax Income The Regional Health Services Act; Services Health The Regional The Personal Care Homes Act; Homes Care The Personal tourist camp, cottage, cabin, trailer, tourist home, tourist trailer, cabin, cottage, camp, tourist or a farm establishment bed and breakfast for less there if home, a resides person vacation months; than six consecutive treatment residential home, special-care centre, that is designated or facility other centre to pursuant to Act; Services Health The Mental by the is rented being accommodation living that property. in farming engaged person Specific Exclusions from Eligible Rental Housing excluded that is specifically construction Residential accommodation: living includes eligibility from • or lodge resort, hotel, in motor a motel, hotel, • house; in a rooming • shelters; or for crisis emergency provided • treatment addiction centre, health in a hospital, • pursuant home that is licensed in care a personal • in home as defined in or a an facility approved • if that is farmed the being on property located funding direct to receive eligible Projects/units are Program Development Rental the under SHC’s rental eligible being from excluded specifically housing. Eligible Rental Income of for the income purposes rental Eligible for each year of eligibility the tax rebate determining rental of eligible to the rental specifically will pertain and will be on housing based and terms conditions the under outlined newly multi-unit rental housing projects, housing rental multi-unit construction; and, construction; conversion). space warehouse (e.g. space Construction Incentive. Construction Eligible Rental Housing include will housing rental Eligible constructed including: • modular including new construction, • to space residential of non-residential conversion must projects housing rental multi-unit Eligible rental of self-contained at fully consist eight least are facilities and kitchen bathroom (meaning units in each suite). available are for seniors projects living assisted Multi-unit that they meet the general provided also eligible in the not included and above are listed conditions These excluded. that is list of specifically housing due to do units not have to be self-contained fully of project. the housing the nature can be located projects housing rental Multi-unit the across or in urban communities rural either a can include wide projects rental Eligible province. rental residential of range new multi-unit high low apartments, rise including accommodations, and other dwellings house town/row rise apartments, as long as prescribed other construction, similar met. are conditions rental residential multi-unit constructed Newly meet eligibility specifically that don’t projects basis on a case-by-case be will considered conditions (SHC). Corporation Housing by the Saskatchewan of for the the tax purposes housing rental Eligible for the may also be Rental eligible rebate 68 Budget 2012-13 | Budget Summary An eligibleAn corporationprivate eitherbeaorcan eligiblerental housingpurposesthetaxforthe of resulthousingthelongerinunitnobeing considered condominiumlaterdate.Conversionaunits at will rebatethe period,enabling convert themto to duringdevelopmentthetimeduring any atphase or Propertyownerspermittedwillberegister to titles projectcompleteisready and occupancy. for rebatetaxthe untilinitialthehousingnewyearthe end,althoughcorporation the defermayeligibility for periodeligiblethebasedon corporation’s fiscalyear- rebatetaxThe availableconsecutive tenis afor year Period Eligibility Rebate controlledprivatecorporations. $500,000activeofbusiness incomeCanadian-of centapplicablepertwoincomefirstrateof thetax to benefitdoesnotfrom lower thesmallbusiness rebatetaxapplythefor eligible on income which Smallbusiness corporations permittedwillbe to fromappreciating assetvalues. providereductiontaxa wherebenefitderived ais multi-unitresidential rental projects tonotand rebatetaxencourage tois construction rentaland of consideredeligible rental income,intentthetheofas capitalandgains,specifically is excluded from being rentalhousing, including recapture depreciationof Incomeresulting fromdisposition the eligibleof new partnershipscorporations.or eligibleAn corporation residentmustbe individuals, Canadabecaninand publiccorporation resident Canada.inInvestors Corporations Eligible on Restrictions rebate. shouldsubmittedconsideration.beforSHC to Completedapplications registeringfor unitsnew housingprojects areavailable contacting by SHC. Applicationsregisteringfor eligiblerental new availablerentfor before 2016. ofendthe rebate.tax Eligibleconstructed unitsmustbe and maximum10,000ofrental unitswillqualifythe for assumingotheralltermsconditionsand aremet.A eligiblerebate,January2014,betaxcanthe1, for afterMarchordatedon before2012and21, Rentalhousing, registered buildingundera permit Process Initial Application/Qualification purchaser.the eligibilitythathousingforpassforwardwillnot to disposeseligibletheofrental new housing, rebate eligibility.However, where eligiblethe corporation disqualifyeligiblerental new housingfrom rebate originatingshareholders specificallywillnot ownershipeligiblethein corporation theby eligiblecorporation. Disposition partallofor ownershipeligibleofrental new housingan by Eligibilityrebatetaxthefor depends fullon rebate. ownersarepermittednot determining in taxthe artificiallybenefiteligiblethe corporation itsor ensurethatnon-arm’s lengthtransactions thatmight Governmentwillundertake necessary scrutiny to indirectlyor eligiblewithan corporation, the Whilerelated entitiesinvolvedbe can either directly rentalnew housingorderin qualify. to corporationeligiblethesoleownertheof mustbe clearseparationbe functionsofeligible theand relatedbecan another toentity; however, there must Budget Summary | Budget 2012-13 69 homebuyer if neither the individual nor the the if individual neither homebuyer partner or spouse common-law individual’s anywhere home, and in owned lived another year of in in the home the calendar Canada, calendar or in any of the four preceding purchase years. allows Plan (which Home Buyers’ for the federal their from to withdraw individuals eligible Plan to purchase Savings Retirement Registered The individual home). or a build qualifying partner or common-law spouse or individual’s to the home as must also intend occupy the not than one later of place residence principal The home may be an its year after acquisition. home or a existing new construction. spouse the home or by that individual’s acquires of For the this purpose partner. or common-law by an to be acquired a home is considered credit, in the interest if only the individual’s individual with the in accordance home is registered system. registration land applicable Eligibility for the tax credit will be extended to will be an extended for the tax credit Eligibility Credit Tax for the Disability eligible individual person or of (DTC), for the a benefit DTC-eligible the home, purchasing to the individual who is related or functional accessible a to in assist finding more to rules the similar will adopt Saskatchewan home. Home First-Time of the federal provisions disability program. Credit Tax Buyers’ features other administration, to simplify In order tax credit the federal will mirror of the tax credit program. • a first-time will be considered An individual • eligible home is one that is A currently qualifying • who may by be the claimed individual The credit Further Information: on tax this new income information For further at of the Finance Ministry contact please initiative, 1-800-667-6102. behalf of behalf the Province. otherwise payable. There will be no carry-forward There payable. otherwise but any unused amounts, for unused provision spouse may by be the claimed individual’s portion will be This tax credit partner. or common-law on Agency by Revenue the Canada administered The 2012-13 Budget announces the introduction the introduction announces Budget The 2012-13 Tax Homebuyers’ First-Time of the Saskatchewan 1, It 2012. January is on based the effective Credit, and home purchase of a $10,000 first qualifying of up tax credit income in a Saskatchewan results to $1,100. the first-time to for the be tax In credit, eligible order for date” the must have a “closing homebuyer defined 1, of home 2012 or January later, qualifying on as the the purchase date of sale identified agreement. and can be used will be non-refundable The credit Tax Income Personal Saskatchewan to reduce SASKATCHEWAN FIRST-TIME HOMEBUYERS’ TAX CREDIT Rebate Administration Rebate tax return will file its income corporation An eligible an and receive Agency Revenue with the Canada for year in manner. a the normal taxation assessment will then file a copy of the corporation The eligible for the tax with its application together assessment, of Finance. Ministry the with Saskatchewan rebate, for of each the ten years will be required This process period. in the rebate Further Information: please on this new initiative, information For further SHC at contact 1-800-667-7567. 70 Budget 2012-13 | Budget Summary and payment of a fee to the servicetheprovider.tofee paymentanda of servicetheprovider;by requireand registration with Saskatchewan;involveinstruction supervisionand areoffered serviceprovidera by locatedin childrenrequireand children activelyto participate; Eligibleprograms arethose thatare suitable for Saskatchewanfamilies. accessibleimprovesand qualitythelifeforof makescultural, recreational sportsand activities more registrationchildrenfeesforAFBThe14. to aged6 creditrebateseligiblechildyearin$150per to up cultural,recreational sportsand activities. taxThe familiesregisteringcostofwiththe children in refundablePersonal IncomeTax credit assistto ActiveTheFamilies Benefit(AFB) provides a BeneFit FAmilies Active consultenactingthe legislation specificfor details. advisedcontacttoresponsiblethe ministries and creditprograms arebeing amended. reader The is efficientsustainable,and resultwiththe thatsometax whethertheseprograms continueeffective,be to existingcredittax programs. Thisreview examined Governmentthe undertook reviewa severalof 2012-13parttheAsofbudget development process, to all childrenallordertoin 18 toof underagethe GovernmentThe expandingis eligibility AFBthefor tives e v i At i t i n i e u n e v e r 3 1 - 2 1 0 2 increaseaccessensureand childrenthatall benefit otherprogram criteria willremain same.the fromsport, culture recreationand opportunities. All For furtherFor information AFB,pleasethecontacton 1-866-951-8828. MinistrytheTourism,of Parks,Culture Sportandat tuitionrebatereduction a as provincial in incometax. provincialpayabletaxwillcontinue receive to their credit.tax Graduates withsufficient incomeand convertingisnon-refundable intoaGRP the income benefitGovernmentwhichGRPpaidout,thetheis orderInmore to accurately reflect mannerthein incomerefund.antax taxespayable,graduatetheexcesspaidto theasis rebateamountgreateris amountincomethantheof theirincomeintaxes otherwise payable. Where the graduatesreceive tuitiontherebate reduction a as refundableincomecredit.tax Thismeansthat Tobeenadministeredhasdate,GRPthe a as AdvancedEducation, Employment Immigration.and rebateeligibility certificate Ministryissuedthebyof Saskatchewanincomereturntax tuition alongwitha $46.4milliontuitionin rebates filingbya advantagethisprogram,of receiving almost over30,000post-secondary graduates havetaken Through2008,2010taxationthe2009and years, threeinstalment years. remainingtheeachof centpaidin per years20and firstthefourinstalmenteachof centpaidin per 10 seven-yearoverapaidout isinstalment period,with $20,000andfour-yearfor degrees). tuitionTherebate $6,400diplomas,for $15,000three-yearfor degrees programtypeof study ($3,000ofcertificates, for tuitionmaximumfeespaid,subjecteachafor to graduates.tuitionTherebate actual basedonis $20,000tuitiontopost-secondaryin feesto refundablePersonal IncomeTax credit rebateto up GraduateThe Retention Program (GRP)provides a ProGrAm retention GrAduAte Budget Summary | Budget 2012-13 71 can be applied against Saskatchewan Corporation Saskatchewan can against be applied for or that year payable in any otherwise Tax Income (or years the previous 10 taxation of the subsequent years). taxation three being are Credit to The the changes R&D Tax of the the sustainability to ensure undertaken will have amendments These the into future. program of the portion the refundable of focusing the effect that need more companies on smaller tax credit the maintaining while to access the benefit, timely for as all R&D in 15 an incentive per cent tax credit the province. R&D Tax on Saskatchewan’s information For further at of the Finance Ministry contact please Credit, 1-800-667-6102. Film emPloyment tAx credit was (FETC) Credit Tax The Film Employment the development in 1998 to encourage introduced The is FETC a film industry. of Saskatchewan’s to equal credit Tax Income Corporation refundable labour Eligible costs. 45 labour per cent of eligible to a of limited 50 maximum are per cent of costs are There budget. eligible total a film production’s for productions rural available bonuses additional in labour key positions. and for Saskatchewan using has created film industry the While Saskatchewan productions, film and television some high quality of over a investment public it has required Industry inception. the since program’s $100 million that an even greater have indicated representatives to remain is required of level subsidization of level public the Given current competitive. activity in industry decline an overall investment, to remain support public and the need for additional to wind has decided the Government competitive, down the tax credit. Income Tax Tax Income and include activities such as operations research, such as operations activities and include Credit effective for qualifying R&D expenditures for qualifying effective Credit on 1, or April The after 2012. 15 per cent incurred for to be will continue refundable Credit R&D Tax to subject corporations, private Canadian-controlled of limit in $3 a annual qualifying million maximum in of excess expenditures Qualifying expenditures. as limit, well as this annual all qualifying will now be by corporations, other expenditures R&D Tax for a eligible 15 per cent non-refundable in earned a year tax credits Non-refundable Credit. Saskatchewan currently offers a refundable offers currently Saskatchewan to equal 15 per cent credit Tax Income Corporation (R&D) and development research of qualifying This tax in Saskatchewan. incurred expenditures a having to all is corporations available credit and in Saskatchewan establishment permanent in R&D activities in qualifying investing are R&D expenditures Qualifying Saskatchewan. to the federal by reference determined reseArch And develoPment tAx credit Act programming. or and computer design engineering to the is changes R&D Tax making The Government However, the Government recognizes that some recognizes the Government However, beginning just who are those particularly graduates, therefore and who are careers post-graduation their other claiming or income are sufficient not earning may not be able to apply and tax credits, deductions GRP tax credit of the full amount the non-refundable individuals, these protect To payable. taxes against tax a new refundable provide will the Government of the non- to equal portion the unused credit GRP tax credit. refundable contact please on the GRP, information For further Employment Education, of Advanced the Ministry at 1-800-597-8278. and Immigration 72 Budget 2012-13 | Budget Summary RegisteredRetirement SavingsPlan,federal theand makeLSVCCinvestmentsto herwithinorhis LSVCCs.Whencombinedindividual’s withan ability $5,000toinvestedup eligiblecentof inper 15 to creditsupplementedisfederal credit atax by equal credittax thereforeis $1,000.SaskatchewanThe tax maximumthe$5,000annualyear– ofper provincial availableindividualfor investmentsmaximuma toup investmentseligiblein LSVCCs.credit taxThe is PersonalIncomeTax creditcentofper 20equal to Saskatchewancurrently provides non-refundablea governmentsprovide significant incentives.tax supportto thesefunds,federal provincialand medium-sizedand businesses. To encourage investors raisecapitalreinvestedpoolsofbethatcan intosmall VentureCapitalCorporations (LSVCCs) designed to Saskatchewanresidents investLabour-sponsoredtoin InvestSaskatchewanThein Program encourages ProGrAm sAskAtchewAn in invest 1-306-787-0730. MinistrytheTourism,of Parks,Culture Sportandat furtherFor information FETC,thepleaseoncontact credit. 2012willcontinueeligibleApril1,betaxthe tofor havealready beenregistered SaskFilmby priorto productions.new However, filmproductions that thereforeFETCisThe beingeliminated anyfor provincialcentper79 highas savingsas taxbe can The InvestSaskatchewanThein Program beenveryhas initialtheofinvestment. province.However, programthe willalsogenerate an successfulraisingincapital reinvestment for thein estimatedmillion$17provincialin expenditurestax for the 2012taxationthefor year. significanceThe thisof incentivewarrants closerscrutiny ensure to thatit is effectivelyis meetingoriginalthe program intent. 1-306-798-1277. Credit,pleasecontact Enterprise Saskatchewan at SaskatchewanProgramLSVCC theTaxonand furtherFor information Investtheinon nextyear.overthe examinationInvestSaskatchewantheinof Program GovernmentThe willtherefore conductan SASKATCHEWAN PROVINCIAL BUDGET 12-13 GENERAL REVENUE FUND (GRF) BUDGET DETAILS 74 Budget 2012-13 | Budget Summary (Increase) Decrease in Net Debt from Operations from Debt Net in Decrease (Increase) 1 Yearof End Debt, Net ...... Year of Beginning Debt, Net Value)...... (Book Land of Agricultural Disposal 2 1 Yearof End Deficit, Accumulated AccumulatedDeficit, Beginning ...... of Year Surplus ...... Fund Security Financial and Growth Transferfrom Expense Revenue mriaino aia ses(rs)...... (Gross) Capital Assets of Amortization Capital Assets...... of Acquisition Surplus...... Annual Transfer (to) Growth and Financial Security Fund...... Security Financial and Growth Transfer(to) Pre-TransferSurplus...... Expense REVENUE FUND D N U F Deficit Accumulated and E U Operations of N E Statement V E R L A R E N E G REVENUE FUND D N U F Debt Net E in U Change of N E Statement V E R L A R E N E G Net debt at March 31, 2011, as reported in the 2010-11the Public in 2011,Accounts. reported 31, as March at debt Net servicing. debt and amortization, individuals, to and services public for transfers services, and goods benefits, and salaries Includes change. this with consistent be to restated been have Forecast 2011-12and The Estimate revenue. tax from deducted of instead expense GRF as recorded are vendors tax to paid commissions 2012-13, in Beginning Capital Transfers...... Capital Operating Expense Operating 1 1 ...... 2 ...... 10,930,627 11,195,913 11,290,900 (3,856,066) (3,574,217) siae oeatEstimated Forecast Estimated siae oeatEstimated Forecast Estimated (281,849) (145,858) (522,447) 021 011 2011-12 2011-12 2012-13 021 011 2011-12 2011-12 2012-13 265,286 191,505 (98,365) (47,494) 47,493 47,493 94,987 1,600 – (thousands of dollars) of (thousands (thousands of dollars) of (thousands 0876910,509,062 10,817,679 1093810,688,266 11,019,398 10,803,300 11,075,200 35427 (3,526,697) (3,574,217) (3,675,993) 4879 (498,759) (498,759) 1588 (116,242) (145,858) 4599 (415,655) (425,999) 0,7 149,296 101,776 0,1 179,204 201,719 5,0 382,517 352,901 2,0 325,000 325,000 5,0 382,517 352,901 7,7 174,434 172,874 2,0)(57,517) (27,901) 582115,034 55,802 2,000 1 (3,675,993) 8,000 1 GENERAL REVENUE FUND

Statement of Cash Flow

(thousands of dollars)

Estimated Forecast Estimated 2012-13 2011-12 2011-12

Operating Activities

Surplus for the Year ...... 47,493 352,901 382,517 Add Non-cash Items: Amortization of Foreign Exchange (Gain) Loss ...... (1,081) 2,181 1,528 Amortization of Capital Assets ...... 191,505 172,874 174,434 (Gain) Loss on Loans, Investments and Capital Assets ..... (14,320) (25,775) (15,920) Net Change in Non-cash Operating Activities...... 182,144 (225,468) (39,839) Earnings Retained in Sinking Funds...... (95,127) (170,000) (81,000) Cash Provided by (used for) Operating Activities 310,614 106,713 421,720

Ministry Capital Activities

Acquisition of Capital Assets...... (522,447) (425,999) (415,655) Proceeds on Disposal of Agricultural Land...... 18,000 29,600 26,000 Cash Provided by (used for) Ministry Capital Activities (504,447) (396,399) (389,655)

Lending and Investing Activities

Receipts ...... 1,356,373 252,179 278,418 Disbursements ...... (1,289,186) (732,933) (1,029,195) Cash Provided by (used for) Lending and Investing Activities 67,187 (480,754) (750,777)

Financing Activities

Borrowing ...... 1,328,380 660,991 886,800 Debt Repayment ...... (1,157,141) (341,744) (378,988) Cash Provided by (used for) Financing Activities 171,239 319,247 507,812 Increase (Decrease) in Cash 1 44,593 (451,193) (210,900)

1 Cash also includes temporary, short-term (less than 30 days) investments. | Budget Summary Budget2012-13

75 76 Budget 2012-13 | Budget Summary Canada Health Transfer...... Health Canada aaaSca rnfr...... Transfer Social Canada 1 Revenue Canada of Government the Transfersfrom ...... Other Canada of Government the Transfersfrom Revenue Own-Source Revenue Other ...... Other ...... Governments Other Transfersfrom ...... Fees Service and Services Sales, Permits...... and Licences Other ...... VehicleFees Motor ...... Exchange and Discount Premium, Interest, ...... Penalties and Forfeits Fines, Revenue Other Entities Crown Transfersfrom Funds...... and Enterprises Other Gaming Authority...... and Liquor Saskatchewan Saskatchewan...... of Corporation Investments Crown Entities Crown Transfersfrom Resources Non-Renewable ...... Other ...... Surcharge Resource ...... Potash Oil...... Gas...... Natural Sales...... Land Crown Resources Non-Renewable Taxes ...... Other Tobacco...... Sales...... Provincial ...... Income Individual ...... Fuel Income...... Corporation Taxes REVENUE FUND N U F E U Revenue N of E Schedule V E R L A R E N E G The 2011-12 Estimate and Forecast for Provincial Sales Tax,Sales Provincial for Forecast Tobacco2011-12change. and The this Estimate with consistent Tax be to TaxesOther restated and been have Beginning in 2012-13, commissions paid to tax vendors are recorded as GRF expense instead of deducted from tax revenue. tax from deducted of instead expense GRF as recorded are vendors tax to paid commissions 2012-13, in Beginning pca iied...... Dividend Special – 11,290,900 siae oeatEstimated Forecast Estimated 1,586,900 9,704,000 3,148,300 1,600,900 5,315,000 1,348,700 2,084,300 2012-13 902,900 363,700 320,300 601,300 100,000 124,600 172,800 145,400 639,400 439,900 150,000 123,800 485,900 705,200 220,000 309,400 247,100 508,300 817,200 16,900 25,400 16,200 46,500 12,500 3,000 1 (thousands of dollars) of (thousands 1052010,803,300 11,075,200 ,5,0 1,568,800 1,754,800 9,234,500 9,320,400 2,828,900 2,761,100 1,410,100 1,471,900 ,7,0 1,278,900 1,915,200 1,373,200 1,915,200 ,1,0 5,276,800 5,116,900 011 2011-12 2011-12 4,0 847,100 847,100 5,0 352,700 352,700 3,0 10,000 130,000 5,0 369,000 555,000 541,000 65,000 124,100 691,000 100,000 162,000 136,500 130,500 167,000 237,800 587,800 422,000 751,400 436,900 140,300 438,300 381,300 130,600 455,400 436,400 451,100 234,100 287,400 297,700 4,0 253,300 461,300 247,100 1,080,700 491,300 792,400 1,0 110,000 110,000 69015,600 24,600 16,900 13,200 24,900 45,800 13,900 74,500 22,500 18,000 GENERAL REVENUE FUND

Schedule of Expense

(thousands of dollars)

Estimated Estimated Operating Capital Expense Transfers Estimated Forecast Estimated 2012-13 2012-13 2012-13 2011-12 2011-12

Ministries and Agencies Advanced Education, Employment and Immigration ...... 878,358 12,240 890,598 861,231 855,800 Agriculture...... 430,777 – 430,777 448,181 417,816 Corrections, Public Safety and Policing.. 373,983 748 374,731 521,669 367,377 Education ...... 1,273,376 77,799 1,351,175 1,314,282 1,233,715 – Teachers’ Pensions and Benefits ..... 244,892 – 244,892 236,471 198,507 Energy and Resources ...... 43,037 – 43,037 36,720 37,059 Enterprise and Innovation Programs...... 27,347 – 27,347 25,237 27,347 Enterprise Saskatchewan ...... 33,063 – 33,063 41,303 41,803 Environment...... 178,462 – 178,462 207,218 180,358 Executive Council ...... 16,472 100 16,572 15,897 15,993 Finance 1 ...... 68,419 – 68,419 86,964 69,043 – Public Service Pensions and Benefits.. 283,517 – 283,517 276,670 280,860 Finance Debt Servicing...... 400,000 – 400,000 410,000 420,000 First Nations and Métis Relations ...... 81,943 – 81,943 80,495 82,230 Government Services...... 14,542 – 14,542 10,647 12,647 Health...... 4,656,623 23,545 4,680,168 4,423,529 4,462,529 Highways and Infrastructure ...... 393,624 32,286 425,910 442,305 380,260 Information Technology Office...... 16,681 – 16,681 21,414 16,349 Innovation Saskatchewan ...... 6,769 – 6,769 3,467 3,467 Justice and Attorney General...... 152,558 – 152,558 150,407 145,367 Labour Relations and Workplace Safety .. 17,489 – 17,489 17,205 16,960 Municipal Affairs...... 275,806 110,977 386,783 379,484 388,583 Office of the Provincial Capital Commission.. 14,099 616 14,715 10,966 10,595 Public Service Commission ...... 38,541 – 38,541 37,777 37,967 Saskatchewan Research Council ...... 18,983 – 18,983 18,133 18,133 Social Services...... 848,575 4,150 852,725 791,337 814,081 Tourism, Parks, Culture and Sport ...... 99,592 2,825 102,417 94,981 100,703 Legislative Assembly and its Officers Chief Electoral Officer ...... 2,471 – 2,471 15,784 14,284 Children’s Advocate...... 1,944 – 1,944 1,993 1,833 | Budget Summary Conflict of Interest Commissioner ...... 145 – 145 131 145 Information and Privacy Commissioner... 1,065 – 1,065 1,174 1,114 Legislative Assembly...... 26,067 – 26,067 25,210 24,225 Ombudsman...... 3,075 – 3,075 2,982 2,982 Provincial Auditor ...... 8,332 – 8,332 8,134 8,134 Budget2012-13 Expense 10,930,627 265,286 11,195,913 11,019,398 10,688,266

1 Beginning in 2012-13, commissions paid to tax vendors are recorded as GRF expense instead of deducted from tax revenue. The 2011-12 Estimate and Forecast have been restated to be consistent with this change. 77 78 Budget 2012-13 | Budget Summary REVENUE FUND N U F E Requirements U Borrowing N of E Schedule V E R L A R E N E G akthwnWtrCroain...... WaterCorporation Saskatchewan ...... TelecommunicationsSaskatchewan Corporation Holding Corporation...... Power Saskatchewan akthwnOpruiisCroain...... Corporation Opportunities Saskatchewan Gaming Authority...... and Liquor Saskatchewan akthwnGmn oprto ...... Corporation Gaming Saskatchewan Municipal Financing Corporation of Saskatchewan...... of Corporation Financing Municipal Borrowing Requirements Borrowing Government for Borrowing Corporations...... Crown for Borrowing Incorporated...... SaskEnergy Information Services Corporation of Saskatchewan...... of Corporation Services Information Corporations Crown for Borrowing ...... siae oeatEstimated Forecast Estimated 1,328,380 1,124,430 021 011 2011-12 2011-12 2012-13 183,200 623,000 146,430 203,950 148,400 20,000 3,400 – – – (thousands of dollars) of (thousands 5,0 92,900 733,300 150,000 236,400 6,9 886,800 886,800 660,991 584,691 150,000 23120,000 32,391 76,300 ,0 10,000 6,000 9,900 – –– – 6,500 6,800 9,900 7,400 – Budget Summary | Budget 2012-13 79 – 42,900 –– As at March 31 9,900 9,900 6,000 12,800 53,057 55,896 92,625 84,015 14,64027,29135,731 6,249 96,555 28,345 42,275 96,716 Schedule of Debt 120,811 116,898 569,396 664,143 508,001 411,287 332,222 381,862 624,326 477,171 3,810,226 3,810,226 3,858,180 4,128,998 8,237,802 8,603,367 2,599,042 3,110,842 9,900 6,000 33,200 55,821 14,640 25,996 35,329 95,433 152,115 724,036 648,084 453,717 596,818 140,348 146,430 3,810,226 4,722,765 9,257,027 3,185,085 – – – – – – (thousands of dollars) GENERAL REVENUE FUND 2013 2013 2013 2012 2012 6,000 64,312 (8,491) 52,004 (26,008) 152,115 772,140 (48,104) 146,430 5,007,739 (1,197,513) 5,269,675 (546,910) 3,571,558 (386,473) Estimated Estimated Estimated Forecast Estimated 11,049,554 (1,792,527) Gross DebtFunds Sinking Debt Debt Debt ...... oprto fSsacea ....Saskatchewan of Corporation 14,640 of Saskatchewan ...... 9,900 Corporation...... 36,684 (1,355) Enterprise Specific Debt General Debt oprto fSsacea ....Saskatchewan of Corporation 142,904 (2,556) odn oprto ...... Corporation Holding 736,600 (88,516) odn oprto ...... Corporation Holding 33,200 Gaming Authority Saskatchewan Telecommunications Saskatchewan Saskatchewan Telecommunications Saskatchewan Saskatchewan Water Corporation Water Saskatchewan Public Debt Guaranteed Debt SaskEnergy Incorporated ...... 666,183 (69,365) Municipal Financing SaskEnergy Incorporated ...... 461,400 (7,683) Government General Debt Crown Corporation General Debt Corporation Services Information Corporation Housing Saskatchewan Saskatchewan Opportunities Corporation.. Power Saskatchewan 100,000 (4,567) Saskatchewan Power Corporation Power Saskatchewan Government Business Enterprise Specific Debt Municipal Financing Crown Corporation Government Business Saskatchewan Gaming Corporation Gaming Saskatchewan Saskatchewan Liquor and 80 Budget 2012-13 | Budget Summary The Power Corporation Act Power The 1993 Corporations Act, Crown The Corporations Crown for Debt Guaranteed Guaranteed Debt Guaranteed Debt Guaranteed Other ...... Fund Student Act Aid and Student Assistance The Stability Act Financial Farm The Debt Guaranteed Other Corporations Crown for Debt Guaranteed REVENUE FUND N 31 U March F at As E Debt U Guaranteed N of E Schedule V E R L A R E N E G Saskatchewan Power Savings Bonds Savings Power Saskatchewan ...... Loans Investor Immigrant Federal niiulFeltLa urnes...... Guarantees Loan Feedlot Individual ...... Guarantees Loan Construction Feedlot Guarantees...... Loan Feeder Associations ree soitosLa urnes...... Guarantees Loan Breeder Associations eisIt eisVI(aue)...... (matured) VII Series to I Series siae oeatEstimated Forecast Estimated 125,100 125,100 152,115 10,000 13,000 27,015 1,000 3,000 2013 15 – (thousands of dollars) of (thousands 20010,830 12,000 85061,129 68,500 41522,868 24,125 26584,015 92,625 85061,147 68,500 9,000 3,000 2012 100 25 – 8,963 2,996 2012 18 61 18

SASKATCHEWAN PROVINCIAL BUDGET 12-13 SUMMARY FINANCIAL BUDGET DETAILS 82 Budget 2012-13 | Budget Summary Treasury Board Organizations TreasuryBoard Retained Surplus of CIC Board Organizations Board CIC of Surplus Retained ...... Surplus GRF in included Dividends Interagency Accounting Adjustments (non-consolidated) Corporation Investments Crown Organizations Board CIC Organizations TreasuryBoard of (Deficit) Surplus ...... Surplus GRF in included Dividends Adjustment to Account for Pension Costs on an Accrual .... Basis Education...... of Boards Fund...... Security Financial and Growth (GRF)...... Fund Revenue General akthwnWtrCroain...... WaterCorporation Saskatchewan ...... TransportationCompany Saskatchewan ...... TelecommunicationsSaskatchewan Corporation Holding Corporation...... Power Saskatchewan ...... Corporation Opportunities Saskatchewan ...... Insurance Government Saskatchewan ...... Corporation Gaming Saskatchewan Incorporated...... SaskEnergy ...... Corporation Services Information ...... Inc. Management CIC Asset Hat akthwn...... Saskatchewan eHealth Saskatchewan Housing Corporation...... Housing Saskatchewan ...... Cancer Agency Saskatchewan Regional Colleges...... Regional TrustMunicipal Northern Account...... Gaming Authority and Liquor ...... Commission Legal Aid ...... Saskatchewan Enterprise Saskatchewan Institute of Applied Science and Technology... and Science of Applied Institute Saskatchewan Saskatchewan Apprenticeship & ...... TradeFund Stabilization Saskatchewan CertificationAgricultural Commission Health Authorities...... Regional akthwnRsac oni ...... Council Research Saskatchewan Interagency Accounting Adjustments Organizations...... Other ...... WatershedSaskatchewan Authority Fund...... Student Aid Saskatchewan TCHEW N WA E H C AT K S A S Surplus of F Statement O Summary T N E M N R E V O G 3 1 2 2 ...... 4 ...... siae oeatEstimated Forecast Estimated 021 011 2011-12 2011-12 2012-13 (153.0) (265.5) (449.0) (232.4) 193.5 183.5 156.7 346.5 439.9 (39.2) (84.3) (13.5) (77.0) (11.8) 69.9 47.5 47.5 91.1 33.7 26.0 65.4 13.9 12.8 (0.4) (1.6) (4.6) (3.4) (5.8) (9.3) (0.5) (6.1) (1.1) 3.9 1.6 7.3 1.5 1.8 0.5 – (millions of dollars) of (millions 200 (120.0) (240.0) (308.9) (430.0) (337.9) (472.0) 159 (206.8) (175.9) 271 (267.5) (297.1) 105 (209.9) (170.5) 7. 227.9 176.8 3. 121.1 134.1 5. 382.5 352.9 248.0 5. 161.0 154.0 1. 347.9 416.8 3. 422.0 436.9 4.)(88.0) (46.9) 5.)(18.0) (50.5) 7.)(94.5) (71.6) (38.3) 98.0 25.9 25.5 17.2 35.3 (0.3) (0.3) 58 (14.9) (6.3) (0.6) (5.8) 4.6 3.5 0.5 0.8 1.5 0.6 4.9 3.2 1.4 0.3 –– – 113.8 118.6 43.1 25.5 96.3 12.2 11.7 (0.5) (7.1) (3.9) (8.2) (0.3) (2.8) (5.4) (0.5) 4.6 0.2 1.5 2.8 0.8 0.7 – Budget Summary | Budget 2012-13 83 1 – (2.2) 26.0 28.2 54.3 83.3 54.3 2,961.1 Continued 2 1 (7.0) 25.0 (22.9) (308.9) (133.7) (142.9) (147.8)(308.9) 135.3 (161.1) (81.0) 2,961.1 2,518.5 3,015.4 (millions of dollars) (millions of dollars) – 5.8 (8.9) 14.8 36.6 53.3 86.8 14.8 (72.0) 2,533.3 2,518.5 Summary Statement of Surplus 2012-13 2011-12 2011-12 2012-13 2011-12 2011-12 Estimated Forecast Estimated Estimated Forecast Estimated Summary Statement of Accumulated Surplus 5 GOVERNMENT OF SASKATCHEWAN GOVERNMENT OF SASKATCHEWAN Not-for-Profit Insurance Organizations Accumulated Surplus as at March as 31, reported Accounts. 2011, in Public the Reporting 2010-11 Financial International under Income Comprehensive Other in reported plans pension benefit defined on losses actuarial Primarily (IFRS). Standards Budgets of these organizations are subject to Crown Investments Corporation (CIC) Board review and include grants from CIC. CIC’s amounts exclude dividend revenue from its subsidiaries. The insurance organizations establish rates and fees that will allow them to be actuarially sound over the long term. These organizations do not pay dividends to the GRF. Budgets of these organizations are subject to Board Treasury review and include transfers from the GRF. fiscal whose for and, organizations agencies between transactions of financial the effects eliminate Adjustments Accounting Interagency 31. and March year-ends their between transactions for significant are 31, not adjust March year-ends Surplus (Deficit)...... Other Comprehensive Income ...... Accumulated Surplus, End of Year 1 2 Crop Reinsurance Fund of Saskatchewan ...... 3 4 5 Saskatchewan Crop Insurance Corporation ...... Surplus (Deficit) The year-end for some organizations is not March 31. The 2012-13 Estimated amounts for those organizations are the Estimated amounts for the fiscal year ending before March 31, 2013. 1 2 Saskatchewan Auto Saskatchewan Fund ...... Compensation Workers’ Board (Saskatchewan) ...... Surplus of Not-for-Profit Insurance Organizations Not-for-Profit Insurance Organizations Accumulated Surplus, Beginning of Year...... Surplus (Deficit) Prior to 84 Budget 2012-13 | Budget Summary Acquisition of GSO Capital Assets GSO of Acquisition Pension Liabilities, Beginning of the Year...... the of Beginning Liabilities, Pension Surplus (Deficit) Surplus e et einn fYa ...... Year of Beginning Debt, Net Debt Net (Increase) in 1 Yearthe of End Liabilities, Pension Adjustmentto Accountfor Pension Costs on an Accrual .. Basis 4 3 2 1 Yearof End Debt, Net ...... Income Comprehensive Other Expense Amortization TCHEW N WA E H C AT K S Debt A Net in S Change of F Statement O Summary T N E M N R E V O G TCHEW N WA E H C AT K S A Liabilities S Pension of F Schedule O Summary T N E M N R E V O G Pension Liability as at March 31, 2011, as reported in the 2010-11the Public in 2011,Accounts. reported 31, as March at as Liability Pension (IFRS). Standards Reporting Financial International under Income Comprehensive Other in reported plans pension benefit defined on losses actuarial Primarily 2010-11the Public in 2011,Accounts. reported 31, as March at as Debt Net adjustments. minor and assets capital of disposal includes also expense Amortization SaskTel.and SaskPower as such (GBEs) enterprises business government by acquired assets capital exclude amounts The authorities. health regional as such (GSOs) organizations service government and GRF the by acquisitions capital reflect amounts These ...... 2 ...... 1 ...... siae oeatEstimated Forecast Estimated siae oeatEstimated Forecast Estimated (4,692.4) (5,353.5) (1,184.4) 021 011 2011-12 2011-12 2012-13 021 011 2011-12 2011-12 2012-13 6,351.7 6,584.1 (661.1) 232.4 508.5 14.8 – (millions of dollars) of (millions (millions of dollars) of (millions (3,783.3) 4624 (4,294.1) (4,692.4) 6,175.8 ,5. 6,382.6 6,351.7 (308.9) 754 (510.8) (775.4) (133.7) 916 (1,041.8) (941.6) 7. 476.7 475.1 7. 206.8 175.9 1 4 3 (3,783.3) 6,175.8 54.3 – 1 3 Budget Summary | Budget 2012-13 85 67.3 2013 Value 3,625.5 3,750.0 9,641.9 9,396.9 7,687.8 17,084.7 17,084.7 Net Book Estimated 2 (14.7) (607.9) (508.5) (193.1) (302.9) (605.7) (1,116.4) (1,116.4) As at March 31 Amortization 13.0 522.4 679.4 2,929.7 1,745.3 1,184.4 2,929.7 1,714.9 – 2012-13 Estimated – Additions 69.0 2012 Value 8,259.5 7,011.9 3,296.2 3,373.5 8,532.7 15,271.4 15,271.4 Net Book Forecasted 4 – – – (3.5) Other 756.5 756.5 756.5 760.0 IFRS and (millions of dollars) Adjustments 2 (9.0) (543.2) (475.1) (174.9) (295.4) (539.0) Summary Schedule of Tangible Capital Assets (1,018.3) (1,018.3) Amortization 13.3 941.6 426.0 498.5 2,162.3 1,220.7 2,162.3 1,224.5 – 2011-12 – Forecast 2011-12 – Additions 1 68.2 2011 Value Actual 3,045.1 3,170.4 7,087.2 6,825.5 6,545.4 13,370.9 13,370.9 Net Book GOVERNMENT OF SASKATCHEWAN 3 3 Organizations (GSOs) Insurance Insurance Organizations Enterprises (GBEs) Organizations Net book value at March as 31, reported Accounts. 2011, in Public the 2010-11 Amortization includes disposal of tangible capital assets and minor adjustments. Government business enterprises (GBEs) such as SaskPower and Liquor and Authority Gaming sell goods and services outside government and are self sustaining. Government service organizations (GSOs) include any other government organization that is not a GBE. GBEs In adopted 2011-12, International Financial Reporting Standards (IFRS). IFRS adjustments primarily relate to the immediate recognition of customer contributions into capital, power purchase agreements that were previously considered commitments and are recognized as finance leases under IFRS, and a one-time option to fair value land and buildings. Other adjustments include a $33M reclassification, from other assets, of a specified volume of natural gas which is integral to operation of the natural gas storage facilities. 1 2 3 4 Government Government Service Government Total This schedule includes capital asset acquisitions of government Government organizations transfers only. to non-government organizations, such as universities and municipalities, for the acquisition of capital assets are excluded. CIC Board Organizations Board CIC Not-for-Profit Government Total Government Business General Revenue Fund General Revenue Board Treasury 86 Budget 2012-13 | Budget Summary is shown as Investment in GBEs. in Investment as shown is Therefore debt of GBEs (except general lending by the GRF to GBEs) is netted against other liabilities and assets and the resultant equity resultant the and assets and liabilities other against netted is GBEs) to GRF the by lending general (except GBEs of debt Therefore The Province’s Summary Financial Statements account for government business enterprises (GBEs) such as SaskPower on an equity basis. equity an on SaskPower as such (GBEs) enterprises business government for account Statements Financial Summary Province’s The Not-for-Profit Insurance Organizations Insurance Not-for-Profit akthwnTlcmuiain ....681.3 3,280.5 ...... WaterCorporation Saskatchewan ...... Telecommunications Saskatchewan Corporation...... Power Saskatchewan Treasury Board Organizations TreasuryBoard Public Debt of Not-for-Profit of Debt Public Public Debt of Debt Public 1 GuaranteedDebt PublicDebt 4.8 1,050.6 Public Debt of CIC Board Organizations ...... Incorporated SaskEnergy ...... Other ...... WatershedSaskatchewan Authority Corporation...... Housing Saskatchewan Health Authorities...... Regional MunicipalFinancing Corporation of Sask. Liquorand Gaming Authority Fund...... Security Financial and Growth TransportationHub Global Authority...... Education...... of Boards Debt Public Government – GRF Public Debt of Debt Public Saskatchewan Immigrant Investor Fund Inc. Saskatchewan Crop Insurance Corporation Saskatchewan Opportunities Corporation akthwnGmn oprto ...... Corporation Gaming Saskatchewan Information Services Corporation .. of Sask. Organizations Board CIC TCHEW N WA E H C AT 31 K March S at As A S Debt of F Schedule O Summary T N E M N R E V O G Debt repayable in foreign currency is restated in equivalent Canadian dollars. Canadian equivalent in restated is currency foreign in repayable Debt Debt obtained by the General Revenue Fund for its own use or on behalf of Crown corporations. The amount is net of sinking funds. sinking of net is amount The corporations. Crown of behalf on or use own its for Fund Revenue General the by obtained Debt Other Treasury Board Organizations TreasuryBoard Other Insurance Organizations Insurance Organizations TreasuryBoard ...... –4.9 – ...... 3,810.2 ...... siae siae siae oeatEstimated Forecast Estimated Estimated Estimated GRF Debt ,3. 256.7 4,137.6 ,5. 389.1 9,257.0 ,1. 127.5 5,119.4 155.0 2. 256.7 327.4 5. (110.9) 152.1 146.4 0321 0321 2012 2012 2013 2013 2013 35.3 55.8 607.0 26.0 . 5.8 6.0 9.9 121.0 – 104.3 – – 1.0 12.7 – – (19.3) 30.0 – – – 1 te etTtlTtlTotal Total Total Other Debt 116.9 4.9 (millions of dollars) of (millions – – – – – – – – 3,280.5 5,246.9 1,055.4 3,810.2 4,394.3 9,646.1 681.3 121.0 104.3 155.0 584.1 146.4 116.9 (19.3) 35.3 55.8 12.7 33.0 30.0 41.2 11.8 4.9 4.9 1.0 9.9 ,9. 3,207.6 2,695.6 ,4. 4,710.7 4,340.7 ,1. 3,810.2 3,810.2 ,3. 4,099.8 4,137.4 ,8. 8,816.6 8,484.6 0. 454.2 508.0 6. 863.8 961.3 3. 123.1 135.5 2. 289.6 327.2 1.)(46.7) (18.7) 5742.3 35.7 3155.9 53.1 5336.2 92.0 35.3 82.0 76.2 85.3 3119.9 13.1 9737.9 29.7 4057.1 64.0 . 6.1 6.5 . 6.1 6.5 . 2.5 1.2 . 6.3 6.6 . 9.9 9.9 –– –– Budget Summary | Budget 2012-13 87 Notes to the Summary Financial Budget year-ends than the GRF and their plans are made than the are GRF plans and their year-ends The process. budget of in Government’s advance with and Cabinet Board of Treasury involvement is often organizations the of plans government these to no significant and can vary from less direct involvement. is that most government difference major Another especially Many, taxes. do not receive organizations tend to spend enterprises, business government in and exchange goods services to monies provide and customers. clients ratepayers, from for revenue METHOD OF CONSOLIDATION (or of Deficit) Surplus Statement The Summary of or all deficit surplus the planned combines then are Adjustments organizations. government transactions inter-organization made to eliminate in the transactions and for to significant account year-end fiscal the organization’s between period These 31 year-end. March and Government’s in an “interagency grouped are adjustments is An adjustment amount. adjustment” accounting recorded are expenses all pension also made to ensure as recommended on of basis an accounting, accrual of the Board Accounting by Sector the Public Accountants. of Chartered Institute Canadian the of plans of This method consolidating the method from differs organizations government which Statements, used in Financial the Summary of the and GRF expenses and revenues combine on a consistent organizations service government interagency and then eliminate basis accounting at the arrives same Each method transactions. line. bottom GOVERNMENT OF SASKATCHEWAN Technology (SIAST) and school boards, have different boards, and school (SIAST) Technology as approved by their Boards. Some of plans, these by Boards. their as approved are authorities, health such as of those regional The plans by of the extent GRF support. influenced and the such as SaskPower of organizations, other such as the organizations, not. Other WCB, are and Science of Applied Institute Saskatchewan or budgets of individual government organizations, organizations, government of or individual budgets The summary budget is a consolidation of the plans is a budget The summary consolidation CONSOLIDATION OF PLANS The Summary Financial Budget reports the planned reports Budget Financial The Summary Fund Revenue of the General activities financial by and controlled funds and of (GRF), organizations requires of control The determination Government. Government While factors. of various evaluation the corporations, Crown controls clearly is for less clear organizations of control determination (WCB), Board Compensation such as the Workers’ jurisdictions Canadian and universities. boards school these they consolidate on whether differ on government’s their depending organizations, of control. degree is Budget not The a in Summary budget the same and Cabinet Board as sense Treasury the GRF Budget. and expenditure in GRF revenue involved directly are not are (taxes) GRF revenues and tradeoffs. decisions they and services to the programs related directly can be independent on revenues so decisions provide, any constraints within on spending decisions from a to of level achieve given by the imposed desire of the GRF and are The Estimates budget surplus. by the then approval review, to detailed subject Assembly. Legislative REPORTING ENTITY 88 Budget 2012-13 | Budget Summary The SummaryTheFinancial Budgetcategorizes businessexaminedappropriateplanisthe by Cabinet thesegroups,Fortwo eachorganization’s budgetor InvestmentCorporation (CIC)Board organizations. areTreasury Board organizations Crownand organizationsintothree groups. firstgroupsThetwo Organizations Government of Categorization ORGANIzATIONS GOVERNMENT OF DESCRIPTION haverevenuesbut moretaxes.feesor akinto InformationServicesCorporation, areself-sufficient arebutself-sufficient.not OtherGSOs,suchas SaskatchewanTransportation Company, sellservices sustaintotheir operations. theSomeGSOs,suchas publicserviceusuallybutneedgovernment grants regionalGSOs,suchas healthauthorities, provide governmentserviceorganizations (GSOs).Typically governmentnot business enterprises areconsidered governmentAll organizations fundsandthatare ORGANIzATIONS SERVICE GOVERNMENT (includingAutoFund),WCB.theand Authority,SaskEnergy, SaskPower, SaskTel, SGI GamingCorporation, LiquortheGamingand MunicipalFinancing Corporation, Saskatchewanthe government.Theseorganizations comprise: the servicesindividualsto organizationsand outside whoseprincipal goodsactivityandsaleofthe is Theseareself-sufficient government organizations ENTERPRISES BUSINESS GOVERNMENT adjusttheirbreakratesto longer evenoverthe term. areintendedactuariallybe to soundwilltypically and groupnot-for-profitis insurance organizations which Committee(Treasury BoardBoard).CIC or third The organizations. dividendtakeadoesnot fromGRFThe these authorityof Conseild’écoles fransaskois, operateunder the Twenty-eightBoards Education,of including the Education of Boards Organizations TreasuryBoard SaskatchewanAct. Government,pursuant to centraltheaseconomic development agencyof EnterpriseSaskatchewan establishedwas 2008in Saskatchewan Enterprise provincialcomponents infrastructure.and accessSaskatchewanthe associatedtheandEHR informationtechnologyand standards necessary to Saskatchewanalsoestablishes provincialthe health electronicof healthinformation. eHealth improvedhealthprovider patientandaccess use and provincialcomponents infrastructureand facilitateto includingassociatedthe informationsystems– Record(EHR)and,where appropriate, otherhealth manageandSaskatchewanthe Electronic Health procure,mandatetois implement, own,operate CorporationsAct,1993. Councilinpursuant provisionsthe to of eHealthSaskatchewan establishedwas Orderby Saskatchewan eHealth propertytheirtaxesjurisdiction.in Provincialthe Government. boardsThe alsoreceive Conseilthereceive operating capitalandgrants from accountabletheirlocaltoelectors. boardsThe and regulationspoliciesandelected and,as bodies, are arerequired complytowithprovincial statutes, childrenfor youth.andboardsThe Conseil theand includingcurriculum instruction,and programsand responsibledeliveringfor educationalthe program – Framework.boardsThe Conseil theandare schoolsystemundertheir Continuous Improvement strengthenperformancethe accountabilityand theof ConseiltheMinistryworkwiththeEducation of to The EducationThe Act,1995. It bringsIttogether representation eHealthSaskatchewan’s The EnterpriseThe The boardsThe and The CrownThe Budget Summary | Budget 2012-13 89 The The Farm Financial Stability The Farm Financial The Regional Health Services Act, Services Health The Regional social centres; centres; social services; and ambulance responders and day programs care, palliative respite, disabilities; with multiple for patients programs health, dental inspection, health public nursing, pathology; and speech vaccinations and delivers the Wildlife Damage Compensation Damage the Wildlife and delivers Program and the Farm and Water Ranch Program Program. Infrastructure Apprenticeship Saskatchewan and Trade Certification Commission (SATCC) of the under authority operates SATCC Act, 1999. Certification and Trade Apprenticeship with agency government is an industry-led SATCC the a to and apprenticeship manage govern mandate There in system Saskatchewan. and certification trade working apprentices registered than 9,000 more are on the and job learning in 47 and 23 trades sub- also of In of excess 5,000 apprentices those trades. each year. training technical classroom-based attend Regional Authorities Health to Pursuant in Saskatchewan services in health 2002, proclaimed Major authorities. health by 12 regional delivered are include: of responsibility areas • and centres, wellness centres, health hospitals, • first including services, response emergency • care, and supportive other long-term home care, • such as health public services health community • and, services; health mental • services. rehabilitation Agricultural Saskatchewan Stabilization Fund Fund Stabilization Agricultural The Saskatchewan under was established Act The provide educational provide NMTA administers all administers NMTA The Regional Colleges Act, Colleges The Regional a broad array of counselling and assessment services and assessment of array counselling a broad planning. with career individuals to assisting geared credit programs based on local needs, and provide and on provide based needs, local programs credit northern Saskatchewan. Regional colleges offer also colleges Regional Saskatchewan. northern and non- credit industry and education, basic literacy programs in response to the of needs and rural in response programs Technology (SIAST), regional colleges deliver credit deliver colleges regional (SIAST), Technology services and programs in more than 40 in locations more and programs services with partnerships Through the province. throughout such as the institutes and technical universities and Science of Applied Institute Saskatchewan from all sectors of the economy to formulate strategy of to all the formulate sectors economy from forward to move the action province and recommend with in accordance agenda growth on a sustainable set out in the Act. Enterprise the principles to to Government advice provides Saskatchewan activities implements to growth; barriers remove the and develop promote that would and programs and reports and establishes economy; Saskatchewan of for performance targets on and clear measurable economy. the Saskatchewan Account Northern (NMTA) Municipal Trust Trust Sharing Revenue the Northern formerly NMTA, 287 of by Section was established Account, Northern Municipalities Act. Municipalities Northern Saskatchewan to the Northern relating revenues and all (NSAD) monies District Administration of for the purposes by the legislature appropriated programs. and grant other sharing revenue northern fund also acts as operating a municipal The NMTA the in the district, area for the unincorporated subdivisions. and recreational settlements northern and hamlets for taxes northern also collects NMTA divisions. school northern Regional Colleges the under authority operating colleges, regional Seven of 90 Budget 2012-13 | Budget Summary urbancampuses (Regina, Saskatoon, MooseandJaw technicaleducation skillsandtraining through four TechnologyAct. SaskatchewanInstituteApplied ofScience and SIASToperates underauthoritythe of Technologyand (SIAST) PrinceAlbert)virtual aand campus, helping meetto Science of Applied Institute Saskatchewan fromSHC. manageproperties receiveand financial assistance properties,third-partybyor groups andthatown localhousingby authorities thatmanageSHC-owned servicesthataredelivered eitherdirectly SHC,by self-sufficiencyclientsforthrough programs and incomes,fostersandindependence and promotesaccesshousingtopeoplefor withlow servicesandfamilies,for seniorsothers.and SHC designingimplementingand housingprograms SaskatchewanHousingCorporation Act, operatesSHC underauthoritythe of (SHC) Corporation Housing Saskatchewan cancerandresearch. residentsregarding cancercancerandprevention; educationhealthofcare providers Saskatchewanand treatment,rehabilitation monitoringand services; screening,detection, diagnosis prevention;and cancer organizations.providesSCA cancerfortesting, withregional healthauthorities healthandcare servicesthroughout Saskatchewan collaborationin organization,deliveryevaluationand cancer ofcare responsible2007.isSCAin planning,thefor whichsupersededwas by establishedwasSCA by (SCA) Cancer Agency Saskatchewan students. enrollmentnearlyis15,000 full-load equivalent studentsneedstheofemployers. and SIAST’s SIASTprovides post-secondary The CancerTheFoundation Act, The CancerTheAgency Act The The developing, industry to be globallyindustrybeto competitive. scienceoftechnologyand assist toSaskatchewan createswealththrough responsiblethe application sciencebettermenttheforprovince. the of SRC consultation,innovation commercializationand of matterspertaining research,to development, design, establishedwasSRC 1947.undertakesSRCin (SRC) Council Research Saskatchewan ticketshorseandracing. gamingincluding bingo,raffles, casinos, breakopen SLGAalsolicensesregulates and mostformsof Saskatchewanallat IndianGaming Authority casinos. terminalsmanagesownsandandslotmachinesthe permittees.operatesSLGAownsandvideo alllottery retailliquorstores, somefranchises, commercialand distributedbeeris Brewer’s by Distribution Ltd.to publicthepermittees.andsaleto Mostmainstream importedand SLGAstoresbeerto franchises and for warehousesdistribute wine,spiritsdomestic and liquorgamingofandacross province.the SLGA’s distribution,regulation, management, operationand RegulationAct,1997 governedSLGAis by (SLGA) Gaming Authority and Liquor Saskatchewan secureto theseservicesfrom theirresources.own thosepersonsorganizationsand arefinancially unable organizationscriminalforcivil andmatters where commissionprovides legalservicespersonsto and LegalCommission.Aid Existing since1974,the providelegislativethe mandateSaskatchewanthefor LegalActTheAid Commission Legal Aid Saskatchewan and . SLGA is responsibleSLGAis . thefor The AlcoholTheGamingand The LegalRegulationsTheAid Budget Summary | Budget 2012-13 91 Crown Investments Corporation Asset Management Inc. 10, Investment 2009, September Effective as a Crown was de-designated Saskatchewan as to CIC Asset operate and continues corporation The with CIC Inc., as sole shareholder. Management and manage is to mandate prudently Corporation’s previously of investments the portfolio divest Saskatchewan. by Investment managed Information Services Corporation (ISC) of land for the administration ISC is responsible statistics, vital systems, information geographic titles, property, in personal and interests mapping surveys, ISC was services. registration and corporate on 1, as January 2000, a wholly-owned established customer-focused of CIC and provides subsidiary Saskatchewan such as the services Land Registry, Vital Plan Registry, Survey Registry, Property Personal and Geomatics Registry, Corporate Registry, Statistics Services. SaskEnergy Incorporated (SaskEnergy) gas system natural provincially-owned Saskatchewan’s in 1952 as of part Saskatchewan operations began a SaskEnergy, (SaskPower). Corporation Power of in CIC, was formed 1988 subsidiary wholly-owned providing to continue as corporation a separate services and distribution gas transmission natural has The grown system the province. across now with service over the years, substantially than 90 to per cent of more Saskatchewan extended safe, provides SaskEnergy Today, communities. to gas service more natural and economical reliable and commercial farm, residential, than 355,000 in the province. customers industrial The The Crown is the current governing is the current The Student Assistance and Student Aid and Student Assistance The Student The fund’s primary purpose is to purpose primary The fund’s Corporations Act, 1993, Corporations legislation. Crown Investments Corporation Board Organizations Crown Investments Corporation of Saskatchewan (CIC) company holding self-sufficient CIC is the financially corporations. Crown commercial for 10 subsidiary was (GFO) Office Finance The Government in 1947 to for act as established a company holding and be corporations Crown many of Saskatchewan’s – control policy broad for developing a mechanism into the dividends and routing investment directing In fund. the GFO 1978, consolidated Government’s of Corporation Investments Crown was renamed with a on of focus the delivery Saskatchewan, to and contribution direction shareholder strategic success. economic the province’s Saskatchewan Aid Student Fund under Aid Fund operates Student The Saskatchewan of the authority Fund Fund Act, 1985. Assistance Student the Saskatchewan support Program. Authority Saskatchewan (SWA) Watershed agency management lead water is the province’s SWA for to the supply and water is manage mandated protect needs; and environmental economic social, reduce water; and ground of the surface quality own and manage develop, flooding; from damage infrastructure; management water the province’s information and data; provide and analyze collect and use. management water to support 92 Budget 2012-13 | Budget Summary the operationtheresearch of province’stheparksat two successSaskatchewan’sof technology sectorthrough subsidiaryCIC.SOCOsupportsof growth the and Establishedwholly-owneda1994, SOCOisin (SOCO) Corporation Opportunities Saskatchewan coverage. tenant,farm,automobile extension commercialand provinces.offerscomprehensiveIt a home,lineof casualtyand insurance businesssevenCanadian in subsidiaryconductscompetitiveCIC,itof a property wholly-ownedtradeCANADA,nameSGIawhich is qualityinsuranceSaskatchewan to people.Under the establishedwasSGIprovide 1945toin affordable, (SGI) Insurance Government Saskatchewan subsidiary.CIC managementBoardwholly-ownedCICtheaof as effectively2007toin placeSaskGaming underthe openedSeptemberin 2002. Legislation amendedwas openedJanuaryin1996,Casinoand MooseJaw Communitytheand Initiatives Fund.CasinoRegina betweenGovernment,the FirsttheNations Trust, agreementthatprovides sharingprofitsfornetof ReginaCasinoframeworkandMooseunderJawa GamingCorporation Act,1994 SaskGamingestablishedwas by (SaskGaming) Corporation Gaming Saskatchewan underbrandthenameInnovation Place. buildingdowntownin Prince Albert. SOCOoperates universitiesSaskatoonin Regina,a and atand to operatetoCasino The SaskatchewanThe nearlycommunities.400 connectionswithpartner carriers extendserviceto servingcommunities290 province. thein STC’s networkagenciesits197of operateroutes bus 27 reasonablyto pricedtransportation. Today, andSTC ensuremanycommunitiesas possible as haveaccess sincecompany1946.busTheestablishedwas to expressfreightand servicesthroughout Saskatchewan beenproviding passenger transportation, parcel wholly-owneda isSTC subsidiary hasandCIC of (STC) TransportationCompany Saskatchewan securityand services. internet,hosting,web multimedia, entertainment, data,text,messaging, dial-uphigh-speedand serviceprovider Saskatchewanin voice,ofcellular, Telegraphsand 1908.SaskTelin leadingtheisfull- establishedDepartmenttheas Railway, of Telephones SaskTel,wholly-owneda subsidiaryCIC,was of Company Holding TelecommunicationsSaskatchewan (SaskTel) resellercustomersSaskatchewan. in residential,farm,commercial, oilfield, powerand principalsupplierelectricity of more to than480,000 SaskPowermaintains thispurposetheisand cost-effectiveSaskatchewanpowerto people.Today, 1929.purposeprovideItsintowas safe,reliable, establishedSaskatchewantheas PowerCommission SaskPower,wholly-owneda subsidiaryCIC,was of SaskatchewanPowerCorporation (SaskPower) Budget Summary | Budget 2012-13 93 Crop Reinsurance Fund of Saskatchewan SCIC with Fund provides Reinsurance The Crop in of losses excess net against coverage reinsurance reserves. and accumulated indemnities premiums, insurance crop for the Saskatchewan Reinsurance and by provincial the federal is provided program of terms under the Canada- governments Agreement. Insurance Production Saskatchewan each government’s made from are Payments on based fund, a set out in formula reinsurance for the and each is responsible the agreement, of its fund. deficits accumulated Compensation Board Workers’ (WCB) in the 1930, WCB is insurance a Established no-fault from and employers workers that protects program annual The WCB collects of work injuries. the results to and funds uses those employers from premiums and for income lost workers injured compensate them to safe, of returning with the objective expenses possible. work as soon as medically productive injury the and to deliver WCB seeks develop Further, with the goal of and services programs prevention injuries. workplace eliminating The The Crop The Farm Financial Stability Act. Stability The Farm Financial and and SCIC administers insurance programs which protect which programs insurance SCIC administers due to natural failures production from producers damage wildlife SCIC also delivers hazards. as well as programs, and compensation prevention Program. the AgriStability Not-for-Profit Insurance Organizations Auto Saskatchewan Fund by SGI, the Auto Fund is the province’s Administered and the provider program auto insurance compulsory system. registration and vehicle of licensing its driver or provide from money The fund does not receive to money the Province. Saskatchewan Crop Insurance Corporation (SCIC) of the authority under SCIC operates Insurance Act Insurance Saskatchewan Water Saskatchewan Corporation Water (SaskWater) of CIC, was subsidiary a wholly-owned SaskWater, in Jaw, Moose in Headquartered 1984. established water owns and operates builds, designs, SaskWater quality providing systems, and wastewater supply municipalities, industries, to water Saskatchewan user groups. and water rural Nations First