On March 22, 2023, Saskatchewan Minister of Finance Donna Harpauer released 2023 Saskatchewan Provincial Budget. A budget surplus is forecasted after increased spending. No significant direct business or tax announcements.
Provincial Budget Announcement
The 2023 Saskatchewan Budget, titled Growth that Works for Everyone, includes increased funding for health care, education, infrastructure, and social programs. There was further confirmation of >$1B surplus for last year and a prediction of >$1B surplus for next year.
From a business and tax perspective, there were not many direct or widely applicable initiatives announced. There were no new taxes introduced. No increases or expansions to personal or business income tax or the PST. No tax reductions either. The increased funding in many areas should lead to secondary economic activity and potentially additional programs to encourage economic growth. We will continue to distribute relevant information as it becomes available.
The specific program commitments of note announced include:
- AgriStability compensation rate to increase from 70% to 80% for 2023 program year to benefit affected producers.
- Extending the Saskatchewan Manufacturing and Processing Exporter Tax Incentive until Dec 31, 2023 to encourage job creation.
- New exemptions from PST for:
- Select farm equipment
- Labour related to installing and repairing medical equipment
- Geothermal drilling rigs
- Increasing Saskatchewan Mineral Exploration Tax Credit from 10% to 30% to reward investors in strategic markets.
- Expansion of Targeted Mineral Exploration Incentive to encourage exploration.
- Funding for the international Credential Recognition Grant to attract foreign healthcare professionals.
- Increase the Apprenticeship Training Allowance to encourage skill development and training.
View the Saskatchewan Finance press release and Budget documents here.
Please contact your Virtus Advisor to discuss any specific questions about the Budget or fill out the form below.