Priority Issues or Spending Spree?
Andrew Thomson says, "Saskatchewan's strong economy is enabling us to address priority issues and build a better future." However, how many of these so called priority issues are actually priorities for the people of Saskatchewan?
It seems to me like the Calvert Government is taking advantage of fairly good economic times to spend on everything and anything that might buy them the next election.
Thomson says that the period of spending this year comes as the result of tight fiscal times in the past. However, he cannot possibly be talking about any periods of restraint during the Calvert years. Certainly, Calvert’s latest spending spree contrasts with Romanow’s spending in the 1990s. As Murray Mandryk notes in his column today: “The $5.26-billion operating budget (costs of running the departments, not including debt-servicing costs) that Calvert inherited from Romanow in 2001 had only increased by $238.2 million from the $5.02-billion operating budget Romanow inherited from Devine in 1991. That's less than $24-million, or half a percentage point a year -- a remarkable feat of fiscal discipline. Now, contrast that with Monday's third-quarter update for the 2006-07 budget, showing that Calvert has increased government operational spending almost as much in the last three months ($206.3 million) as Roy Romanow did in 10 years ($238.2 million).”
What is even more remarkable is that during Calvert’s tenure, his average annual increase in spending has even trumped that of Devine’s! However, at least the population of Saskatchewan was growing during the Devine years, and we all know the same cannot be said of Calvert! Thanks to high oil prices, Calvert has been able to get away with it!
So where does the $597 million that Calvert’s Government is set to take in compared to their predictions a year ago? Well $531 has already been spent!
It seems most days there is an announcement of new spending, whether it be funding for Northern Communities or its most recent announcement – that Saskatchewan’s four largest cities would have free wireless internet in the downtowns and certain areas, such as post secondary institutions. This is a priority area? No, this is a clear election grab to maintain support in certain areas where Calvert and Co. think they might be vulnerable. Nevermind the rural places where the outcome is a foregone conclusion regardless of when the election is finally called. Most downtown offices and university spaces already have wireless internet and definitely not the most in need of free wireless coverage! However, to the naïve voter this might create the image that the Calvert Government is embracing technology and is forward-thinking. This is no doubt a move to counter the stale, tired image it currently has with voters.
Meanwhile, while this spending increases, so does our debt, to 7.3 billion by year’s end. Yes, the debt-to-GDP ratio is down from 16.8% to 16.1% but given the fact that we’re experiencing economic good times, shouldn’t our overall debt actually reduce as well?
It was announced yesterday that Alberta would see a $7 billion surplus this year, due in large part to oil and gas revenues and increased tax revenues, the same items pushing Saskatchewan’s comparatively meagre surplus up. However, the government there, having already paid off their debt, plans to save the money for the inevitable day when oil and gas revenues no longer produce such surpluses. With the PC Party destined to win the next election in a couple of years, the Alberta government is not so desperate to improve its image and buy votes. Instead, it will resist the temptation to go on a spending spree like its Saskatchewan counterpart.
Perhaps if the Saskatchewan Government could resist free for all spending and pay down some of our provincial debt we could see a government that really is forward-thinking rather than one who attempts to create that image by providing free internet service.
It seems to me like the Calvert Government is taking advantage of fairly good economic times to spend on everything and anything that might buy them the next election.
Thomson says that the period of spending this year comes as the result of tight fiscal times in the past. However, he cannot possibly be talking about any periods of restraint during the Calvert years. Certainly, Calvert’s latest spending spree contrasts with Romanow’s spending in the 1990s. As Murray Mandryk notes in his column today: “The $5.26-billion operating budget (costs of running the departments, not including debt-servicing costs) that Calvert inherited from Romanow in 2001 had only increased by $238.2 million from the $5.02-billion operating budget Romanow inherited from Devine in 1991. That's less than $24-million, or half a percentage point a year -- a remarkable feat of fiscal discipline. Now, contrast that with Monday's third-quarter update for the 2006-07 budget, showing that Calvert has increased government operational spending almost as much in the last three months ($206.3 million) as Roy Romanow did in 10 years ($238.2 million).”
What is even more remarkable is that during Calvert’s tenure, his average annual increase in spending has even trumped that of Devine’s! However, at least the population of Saskatchewan was growing during the Devine years, and we all know the same cannot be said of Calvert! Thanks to high oil prices, Calvert has been able to get away with it!
So where does the $597 million that Calvert’s Government is set to take in compared to their predictions a year ago? Well $531 has already been spent!
It seems most days there is an announcement of new spending, whether it be funding for Northern Communities or its most recent announcement – that Saskatchewan’s four largest cities would have free wireless internet in the downtowns and certain areas, such as post secondary institutions. This is a priority area? No, this is a clear election grab to maintain support in certain areas where Calvert and Co. think they might be vulnerable. Nevermind the rural places where the outcome is a foregone conclusion regardless of when the election is finally called. Most downtown offices and university spaces already have wireless internet and definitely not the most in need of free wireless coverage! However, to the naïve voter this might create the image that the Calvert Government is embracing technology and is forward-thinking. This is no doubt a move to counter the stale, tired image it currently has with voters.
Meanwhile, while this spending increases, so does our debt, to 7.3 billion by year’s end. Yes, the debt-to-GDP ratio is down from 16.8% to 16.1% but given the fact that we’re experiencing economic good times, shouldn’t our overall debt actually reduce as well?
It was announced yesterday that Alberta would see a $7 billion surplus this year, due in large part to oil and gas revenues and increased tax revenues, the same items pushing Saskatchewan’s comparatively meagre surplus up. However, the government there, having already paid off their debt, plans to save the money for the inevitable day when oil and gas revenues no longer produce such surpluses. With the PC Party destined to win the next election in a couple of years, the Alberta government is not so desperate to improve its image and buy votes. Instead, it will resist the temptation to go on a spending spree like its Saskatchewan counterpart.
Perhaps if the Saskatchewan Government could resist free for all spending and pay down some of our provincial debt we could see a government that really is forward-thinking rather than one who attempts to create that image by providing free internet service.
posted by Saskatory at
10:18 AM
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