On March 23, 2011, Finance Minister Ken Krawetz presented Saskatchewan’s 2011-2012 budget, with the expectation that Saskatchewan’s economy will grow by 4.2% in the coming year. Anticipating strong global demand for the province’s natural resources, the budget forecasts an increase in royalties revenue from both crude oil and potash production and projects a surplus of $115 million.
The budget proposes to reduce debt while allowing for more spending on public services, mainly health, education and infrastructure, and offers tax cuts to individuals and families as well as small businesses.
The budget contains no new measures from a commodity tax perspective.
Education property taxes will be reduced for agricultural land, as well as commercial and residential property.
There was no change announced to the general corporate income tax rate of 12%. However, the small business income tax rate will be reduced from 4.5% to 2%, effective July 1, 2011.
Additional information on the 2011-2012 Saskatchewan budget is available on the province’s web site at: