Jason Childs is a professor or economics and Tegan Hill is an economist with the Fraser InstituteScott Moe and the Saskatchewan Party have won the election and will form the next government, just in time for Halloween. But there’s a lot of hard work ahead to get the province’s finances back on track before the province’s debt becomes truly terrifying. Moe’s campaign made several bold promises, which add up to running large deficits until at least 2027/28. And adding more than $380.1 million to the province’s debt before the next election in 2028. That’s if things go as expected. And things almost never go as expected.In addition to the projected deficits in the operating budget, which pays for day-to-day operations including employee salaries, the government will also continue to borrow to fund capital projects such as schools, hospitals and roads. Indeed, the government already carries more than $34 billion in total gross debt across all accounts. For context, that’s more than $27,000 per Saskatchewanian.Of course, just as Saskatchewanians must pay interest on their mortgage or car loan, they must also pay interest on government debt. The latest budget dedicated more than $911 million to debt interest costs in 2024/25. As debt rises, all else equal, so do debt interest costs. And every dollar spent on debt interest cannot be spent on services such as health care and education.So, how can the More government get the province’s finances back on track?If Premier Moe keeps his promises to reduce personal income taxes, provide a home renovation tax credit and maintain the 1 per cent small business income tax rate, he must significantly restrain spending for the next four years to achieve the promised budget surplus in 2027/2028.The government should also explore reforms options for health care and education — simply throwing more money at the problem is not a solution. Improving education can pay dividends if it improves literacy and numeracy for students. Improving health care will improve the quality of life for all citizens of the province — but only if access and outcomes improve. Again, however, making changes will require a frank and open discussion about the strengths and challenges of these two flagship programs. Hopefully, Premier Moe enjoys some sweet treats this Halloween. But he must be ready to roll up his sleeves when he returns to the legislature.Jason Childs is a professor or economics and Tegan Hill is an economist with the Fraser Institute.
Jason Childs is a professor or economics and Tegan Hill is an economist with the Fraser InstituteScott Moe and the Saskatchewan Party have won the election and will form the next government, just in time for Halloween. But there’s a lot of hard work ahead to get the province’s finances back on track before the province’s debt becomes truly terrifying. Moe’s campaign made several bold promises, which add up to running large deficits until at least 2027/28. And adding more than $380.1 million to the province’s debt before the next election in 2028. That’s if things go as expected. And things almost never go as expected.In addition to the projected deficits in the operating budget, which pays for day-to-day operations including employee salaries, the government will also continue to borrow to fund capital projects such as schools, hospitals and roads. Indeed, the government already carries more than $34 billion in total gross debt across all accounts. For context, that’s more than $27,000 per Saskatchewanian.Of course, just as Saskatchewanians must pay interest on their mortgage or car loan, they must also pay interest on government debt. The latest budget dedicated more than $911 million to debt interest costs in 2024/25. As debt rises, all else equal, so do debt interest costs. And every dollar spent on debt interest cannot be spent on services such as health care and education.So, how can the More government get the province’s finances back on track?If Premier Moe keeps his promises to reduce personal income taxes, provide a home renovation tax credit and maintain the 1 per cent small business income tax rate, he must significantly restrain spending for the next four years to achieve the promised budget surplus in 2027/2028.The government should also explore reforms options for health care and education — simply throwing more money at the problem is not a solution. Improving education can pay dividends if it improves literacy and numeracy for students. Improving health care will improve the quality of life for all citizens of the province — but only if access and outcomes improve. Again, however, making changes will require a frank and open discussion about the strengths and challenges of these two flagship programs. Hopefully, Premier Moe enjoys some sweet treats this Halloween. But he must be ready to roll up his sleeves when he returns to the legislature.Jason Childs is a professor or economics and Tegan Hill is an economist with the Fraser Institute.
