Murray Wood: Government nickel and dimes us in advance of Saskatchewan budget
We know the budget is going to include a deficit, and Murray Wood says it's probably not a good sign that the government...
The Scott Moe government says measures in its budget 2026-27 will help keep Saskatchewan one of the most affordable places to live in Canada.
The total price tag for affordability measures in the budget is more than $2.5 billion, with the government touting $200 million in tax savings for the province.
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One of the key measures was already committed to under the Saskatchewan Affordability act, which passed in 2024 – a $500 increase to the personal, spousal, equivalent-to-spouse and child tax exemptions, as well as the seniors’ supplement.
The change also adds five per cent to the low-income tax credit, and those changes are above and beyond the indexation of tax credits.
All of that adds up to a family of four paying no provincial income tax on its first $65,000 of income, which the government says is the highest threshold in Canada.
The province said Saskatchewan is the most affordable place in Canada for a family of four across a range of incomes. For a single person making a modest income, the province ranks third.
The government included housing costs and other affordability measures and credits on top of taxes and utility bills when making those calculations.
But one thing the budget doesn’t take into account is the higher cost of fuel. It pegged the benchmark price for crude oil at $59.75/barrel, well below last year’s forecast of $61.69 and actual average price of $74.49.
The province’s projected revenue from oil and gas is lower as a result. But because the budget documents were completed prior to the start of the war in the Middle East, the price of crude has jumped significantly, and so have the prices at the pumps.
Finance Minister Jim Reiter says the government isn’t currently considering fuel relief measures, despite calls from the Saskatchewan NDP to cut the fuel tax.
“It’s cents per litre, so that increase in price doesn’t bring extra money into the provincial treasury,” Reiter said, who added that a fuel tax holiday would take away the revenue used to build and maintain roads.
Premier Scott Moe added that Alberta and Manitoba can afford to implement such a tax break because Alberta has significantly higher oil and gas revenue, while Manitoba receives equalization payments.
But NDP leader Carla Beck thinks Saskatchewan people need the break.
“It would offer some relief and a signal to people that maybe, just maybe, this government understood that they’re not just whining when they say how much they’re struggling,” she said.
Prior to the budget’s unveiling on Wednesday, the government announced that fees are going up for driver’s licences and vehicle registrations, while the deductible on basic plate insurance is increasing from $700 to $950. Those changes will take effect on Jan. 1.
The province cited higher collision repair costs as a factor in the decision. The Saskatchewan Auto Fund is projecting a large loss in this year’s budget – $242.5 million, up from an expected loss of $141.8 billion for the previous year.
