From a source inside the government - the budget coming down ain't going to be pretty. Saskatchewan (pop 975,000 and dropping) has been running half-billion dollar deficits and now has an accumulated debt equal to the highly criticized "Devine years" of the 1980's.
The difference is that the Grant Devine Conservatives had an revenue-poor economy to deal with in which potash, oil and grain prices were in the tank, coupled with drought and sky-high interest rates. Plus, they had inherited the Blakeney legacy of hostility towards investment and private development - the nationalization of the potash industry, the despised "Land Bank" government purchases of farm land, and gas/oil royalty structures that crippled development of the resources.
Romanow, to his credit, faced the music, and the deficit was brought under control, though the province still fared miserably when it came to economic development. Old socialist economic theories and entitlements die hard - especially when your political base consists of unionized labour and "Tommy Douglas" seniors who respond to "Mediscare" campaigns.
The Calvert NDP have managed to dig us back into a very large hole despite record revenues and lowest interest rates in a generation. It didn't stop them from campaigning on a spending platform and pledging to preserve "public ownership" of the sacred Crown Corporations - of which the government owns around 70. The only jurisdiction in North America with more government ownership of the economy outside Saskatchewan is Cuba.
Bottom line? The government may fall over this budget. There is real concern that some on the government side of the benches will not vote for it, and with the current 50 - 50 split of NDP to conservative SaskParty members in the legislature - it won't take but one defection.
Interesting times ahead.
