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Don’t make the same mistake twice

The provincial government will release its 2018-19 budget on April 10, and there’s a sense of concern in some circles about the document. After all, the 2017-18 budget was one of the most controversial in recent memory.

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The provincial government will release its 2018-19 budget on April 10, and there’s a sense of concern in some circles about the document.

After all, the 2017-18 budget was one of the most controversial in recent memory. Taxes went up, spending went down, and the government’s approval rating plunged to its lowest level since the Saskatchewan Party was first elected in 2007.

There were some tough decisions that were astutely made last year, but others shouldn’t have been made. The government repealed some of those decisions, but they didn’t budge on others, despite the public outcry.

The good news for the government, from a timing perspective, is that last year’s budget came early in the term, rather than later. While some will be quick to bring up the 2017 budget during the 2020 election campaign, the public will have likely moved on to other issues, good or bad, by then.

The government’s popularity hasn’t returned to pre-2017 budget levels, but it has recovered somewhat, and the Sask. Party is still one of the most popular governments in the country.

Hopefully the government won’t make the same mistake with the upcoming provincial budget as it did last year.

The 2018-19 provincial will likely be another deficit budget, but the deficit isn’t expected to be as onerous as it was the last two years.

The provincial government also has to be more calculating about what it cuts this year. It thankfully backtracked on its decision to cut spending to regional libraries, and it has restored the provincial sales tax exemption on some insurance premiums.

When governments backtrack on decisions like those, however, it leaves the public thinking that the government is swaying to public opinion, or it didn’t thoroughly think those decisions through.

The government can’t afford to increase the provincial sales tax by another point. It doesn’t have a money-losing Crown corporation that it can close, like it did last year with the Saskatchewan Transportation Company.

And it can’t afford to hamstring municipalities like it did last year, when it eliminated the grants in lieu of taxation program. Many communities are still feeling the pinch of losing that money.Ìý

Saskatchewan wasn’t the only province facing a tough budget last year. Alberta also had challenges. Saskatchewan’s government opted to cut spending and keep the deficit lower than it could have been. Alberta’s government opted for a much higher deficit that will ultimately be felt by future generations.

The best bet would have been to find a middle ground, between the deep cuts of the Sask. Party budget, and the free spending shown by Alberta’s New Democratic Party government.

The Sask. Party needs to continue to work towards a balanced budget, but it can’t afford to release another budget that’s so hard on so many in the province.

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