Saskatchewan is staying in the black with a budget that hits smokers and drinkers in the pocket to help balance the books.
The budget tabled Wednesday increases the tobacco tax rate by four cents a cigarette, effective at midnight tonight. Markups on liquor will rise about three per cent on April 1.
"I'm sure the two-pack-a-day smokers will not be pleased," Finance Minister Ken Krawetz said.
"It's not out of line with what other provinces have. I think we're going to be one of the highest -- if not the highest -- at 25 cents (provincial tax) per cigarette. On the alcohol side, the markup ... is not that significant."
The measures are necessary because the province is facing falling revenues from non-renewable resources, such as oil and gas or potash.
"It's no secret that resource revenues are down," said Krawetz.
"To achieve a balance, our government had to control spending and this budget does just that with a modest overall spending increase of just 3.1 per cent.
"To get there, we needed to make some choices. This may mean some groups in our province have a little smaller funding increase than they might have hoped for.
"Sometimes decisions have to be delayed."
The government is forecasting revenues of $11.6 billion and expects to spend $11.5 billion. The province is projected to post a surplus of $64.8 million.
The budget boosts benefits for seniors and people with disabilities. The Seniors Income Plan benefit will increase $10 a month in July, while the benefit for seniors living in special care homes will rise by a maximum of $25 a month.
Meanwhile, the Saskatchewan Assured Income for Disability benefit will increase $50 a month for individuals and $60 a month for couples. In addition, the government is doubling capital funding for paratransit buses and increasing transit assistance for people with disabilities.
The finance minister said infrastructure is one of the biggest challenges facing Saskatchewan. The government will spend $847.5 million on infrastructure this year, up 7.6 per cent from 2012.
The government’s rainy-day fund is forecast to have a year-end balance of $695.1 million. Of that, $182.4 million has been set aside for future infrastructure projects and debt reduction.
Krawetz said Premier Brad Wall has decided that money from the fund will not be spent on any specific projects so it is available to cover any costs that may arise from potential flooding this spring.
The Opposition NDP criticized the budget for falling short on health care and education.
NDP finance critic Trent Wotherspoon said it does little to deal with the pressure of 4,500 new students. Wotherspoon was also critical of plans to build hospitals and school with public-private partnerships.
"This budget pushes costs onto future generations, whether it's in education, costly P3s or debt. The Sask. Party mantra seems to be, 'Just let the kids pay for it,"' he said.
"This short-sighted approach will catch up with us before too long."
With files from The Canadian Press
