News Release

April 6, 2006

Additional Information

Finance - 259

NEW PROVINCIAL BUDGET BUILDS A BETTER FUTURE

Tax cuts for business, more training opportunities for young people, a freeze
on tuition fees and support for vulnerable citizens -- those are some of the
highlights delivered by Finance Minister Andrew Thomson in Saskatchewan's 13th
consecutive balanced budget.

"This Budget will secure the prosperity we enjoy today for future generations,
to reinvest in our social programs so that no one is left behind on the path
to opportunity, and to ensure that Saskatchewan remains the best place in
Canada to live, work and raise a family," Thomson said.

Cutting business taxes, and other measures to stimulate the economy

• Business tax cuts ($95.3 million tax reduction for 2006-07) will improve tax
competitiveness, attract and stimulate capital investments and create jobs and
opportunities for youth. This will be done through a multi-year plan to:

- Eliminate the general Corporate Capital Tax (CCT) by July 1st, 2008, except
for provincial Crown corporations currently taxable;

- Eliminate the general CCT on new capital investments in Saskatchewan on July
1st, 2006;

- Reduce CCT Resource Surcharge rates beginning July 1st, 2006;

- Reduce the Corporate Income Tax (CIT) rate from 17 to 12 per cent by July
1st, 2008;

- Increase the small business threshold from $300,000 to $500,000 by July 1st,
2008;

- Immediately convert the non-refundable Investment Tax Credit (ITC) for
Manufacturing and Processing into a refundable tax credit and extend the
carry-forward for unused ITCs previously earned to 10 years ;

• $6.3 million for immigration efforts – to bring 5,000 people to Saskatchewan
annually, to grow the province and the economy;

• $17.7 million for Ethanol Program incentives;

• $8.9 million in Film Tax Credits;

• $15.5 million for expansion of Maple Leaf Foods to support expanded
slaughter and processing capacity;

• $3.5 million in support to the Meat Strategy for construction of new
federally inspected plants or upgrading to federal inspection standards;

• $25 million through the Crown Investment Corporation (CIC) Saskatchewan
Entrepreneurial Foundation and Fund, launched November 9th, 2005:

- To help build Saskatchewan's economy by supporting the growth of new,
expanding small businesses, and developing entrepreneurial skills;

- Aimed at all existing or aspiring entrepreneurs, but particularly at First
Nations and Mιtis people, and northern and rural people; and

- Foundation will provide business advice, mentoring, and support services to
aspiring entrepreneurs with the goal of developing investment ready business
plans. These plans will then be eligible for investments from the Fund, which
will provide financing of up to $1 million for each approved proposal.

Supporting communities and farm families

• $97.3 million in revenue sharing for municipalities for 2006-07 (an increase
of $12.2 million), as well as $69.3 million in capital dollars, including
federal capital contributions;

• Base funding of $98.8 million is provided for Canadian Agricultural Income
Stabilization (CAIS), and another $100 million for the Crop Insurance program;

• $67 million to reduce education property tax on agricultural land;

• Eight per cent education property tax credit program continued for
residential, commercial and industrial property;

• $407.3 million capital budget; our largest ever. Provincial infrastructure
being restored including new health facilities, schools, a provincial lab, a
provincial correctional centre and a revitalized aerial fire fighting fleet;

• $3.5 billion in transfers to major third parties (schools, municipalities,
universities, health regions), up 10.8 per cent;

• $345 million Highways budget, which includes $150.7 million in highways
capital and road improvements, such as $49.4 million for twinning on Highways
1 and 16 and $7.5 million for twinning on Highway 11 between Warman and
Rosthern, as well as $8.6 million for the northern roads strategy;

• $1.9 million in funding to meet the 200 police officer commitment;

• SaskTel will invest $310 million over the next five years in its Next
Generation Access Infrastructure (NGAI) to increase bandwidth to customers to
enhance services like high speed Internet, Max Entertainment Services,
Voice-Over IP, as well as increase cellular expansion and bring fibre optic
cable closer to customer homes for high definition TV and increased Internet
speeds;

• SaskTel's total capital investment in its network in 2006 will be
approximately $245 million, with $136.5 million dedicated to NGAI; and

• SaskTel will invest up to $28 million by the end of 2006 to expand its
cellular coverage to new areas and improve cellular coverage in existing
areas, improving its digital cellular network throughout the province.

Largest Health investment ever: $3.2 billion

• $4.9 million in increased funding to the College of Medicine for increased
seats and to address accreditation;

• $171.3 million (9.6 per cent) increase in funding to Regional Health
Authorities;

• $2.7 million to continue with safe needles/sharps;

• $250,000 for ongoing planning for the Muskeg Lake Cree Nation Diabetes
Centre;

• $500,000 for construction of new renal dialysis site in southern
Saskatchewan;

• $750,000 to open more acute care beds in Prince Albert;

• $10.3 million increase for utilization and drug costs for the Saskatchewan
Cancer Agency;

• $1.5 million to increase chiropractic and optometric treatments/services;

• $22 million for health equipment;

• $1.4 million to implement a comprehensive child and youth mental health
strategy, therapy services for children and services for children with complex
needs;

• Multi-year, previously-approved work will continue on:

- Integrated facilities in Moosomin, Outlook, Maidstone, Preeceville and
Humboldt;

- Joint use facility (school/health) in Ile-a-la-Crosse;

- Regional hospital in Swift Current;

- Renovations to Oliver Lodge in Saskatoon; and

- Facility upgrades to Regina and Saskatoon hospitals.

Helping young people build their futures, right here

• Record $1.5 billion investment in education;

• Providing $196 million to training system and nearly $300 million for
universities;

• Freezing university tuition until 2008, improving access and affordability
to a post-secondary education;

• $466 million in funding for approximately 34,000 training spaces and over
32,000 university seats in 2006-07;

• Training and employment program spaces are projected to increase by over
2,700 spaces (nine per cent) in 2006-07 and by a further 1,550 (five per cent)
in 2007-08:

- This includes 83 new seats at the Saskatchewan Indian Institute of
Technologies (SIIT);

- With total increased spaces, the Province will exceed the commitment to
provide an additional 5,400 training spaces and employment program
opportunities by 2007-08;

- $2.2 million to continue the Student Employment Experience program with 700
to 800 jobs and $200,000 to continue the Green Team program with 100 jobs;

- The total training system will have expanded by 19 per cent since 2003-04;

• Providing almost $100 million in student assistance;

• Increasing the Graduate Tax Credit to $850, and further increasing it to
$1,000 on Jan. 1st, 2007;

• Tool Tax Credit: a one-time trade entry tax credit that recognizes the high
initial cost of work-related tools purchased as a condition of employment by
eligible tradespeople ($1 million in savings annually), and an annual
maintenance tax credit that recognizes the ongoing cost of maintaining these
tools (estimated $1.9 million in tax savings for tradespeople annually);

• $20 million commitment over five years to youth and Aboriginal people,
through CIC career and skill-building programs. Goals are to provide
attractive careers to educated, skilled youth and Aboriginal people so they
will stay in Saskatchewan; to replace the employees in Saskatchewan's
commercial Crown corporations who will be retiring over the coming years; and
to have the Crowns' workforces represent the diversity of Saskatchewan's
population. Programs announced so far include:

- Aboriginal bursary program for undergrad students at the U of R and FNUC;

- Gradworks internship program to provide internships in the Crowns for recent
post-secondary graduates;

- Mathematics and Science Enrichment Program for Aboriginal students at the U
of S;

- Establishment of Aboriginal Student Recruitment and Retention Office and
Undergraduate Leadership Program at U of R and FNUC;

- Aboriginal Student Achievement Program at the U of S;

Ensuring no one is left behind on the path to opportunity

• $18.2 million for Project Hope for treatment, detox beds, outreach services
and drug programs including $3.7 million for Secure Care initiatives (for
involuntary admissions for treatment);

• $6.2 million in funding to the Saskatchewan Rental Housing Supplement to
make higher quality rental housing more affordable for families and people
with disabilities, supporting the province's five-year $200 million HomeFirst
strategy;

• Supporting 670 new families through KidsFirst;

• $14.2 million for Saskatchewan Assistance Plan (SAP) and Transitional
Employment Allowance (TEA) enhancements:

- $13.2 million to provide a $480 per year increase to SAP and TEA for an
increase to adult allowance rates (including Basic Allowance, Room and Board
Allowance and the TEA General Living Allowance); people living in residential
care facilities will receive a $20/month increase to the Personal Living
Allowance;

- $1 million to provide an additional $120/year to TEA recipients;

• $1.5 million TEA enhancement to increase utility allowances;

• $1.8 million for $720 per year Provincial Training Allowance enhancement, to
provide for increased cost of living for students in training;

• $4.6 million to support childcare – both new spaces and an increased subsidy
– to contribute to enhanced quality and assist parents to participate in the
labour force;

• $17.1 million in Community Based Organization (CBO) wage increases;

• $300,000 to expand existing pre-kindergarten programs for vulnerable
children ages 3-4;

• $2 million for literacy initiatives;

• Continuation of Energy Share conservation programs for low and
moderate-income earners;

• $5 million for payment of four new Treaty Land Entitlement agreements;

The green economy

• Up to $10 million from the federal government and up to $10 million from the
provincial government for the Clean Coal Project: Canada and SaskPower to
start initial work toward a coal plant with near zero emissions and CO2
capture for enhanced oil recovery;

• $17.6 million for the Centennial Wind Power Facility – the largest wind
power development in Canada:

- 150-megawatt project located 25 kilometres southeast of Swift Current; will
have the capacity to supply power to about 64,000 homes;

- When combined with Saskatchewan's two other wind facilities, we'll have
total capacity of 172-megawatts of electrical generation from wind; and

- When completed at a total estimated cost of $272.4 million, the wind power
generated by the facility will account for about five per cent of
Saskatchewan's total electrical generation capacity; the highest percentage in
Canada.

Sound financial management

• 13th consecutive balanced budget;

• Paying down debt by a further $101.9 million (since 2004-05, Government has
permanently paid down debt by $446.6 million);

• Government debt, at $7.2 billion, is now at its lowest point in 15 years;
and

• Projected debt to GDP ratio of 16.7 per cent for 2006 (15.8 per cent for
2007), compared to 41.6 per cent in 1993.

"We are enjoying prosperous times in Saskatchewan. Our economy is performing
well, and the business tax cuts in this Budget will ensure that continues,"
Thomson said. "We are securing this prosperity and providing the benefits to
the people of Saskatchewan through increased property tax relief, increased
revenue sharing for communities and enhanced social programs.

"This is a Budget that provides the foundation to transform our economy. It is
a Budget that ensures no one is left behind on the path to opportunity. It is
a Budget that continues on a sound financial path," Thomson said. "Most
importantly, it is a Budget that will ensure Saskatchewan continues to be the
best place in Canada to live, work and raise a family."

Budget documents are available online at www.gov.sk.ca/finance/budget.

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For More Information, Contact:

Lorri Thacyk
Finance
Regina
Phone: (306)
787-6605

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