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The Honourable Rod
GantefoerMinister of Finance

SASKATCHEWAN PROVINCIAL
BUDGET

08-09

READY FOR GROWTH

BUDGET SUMMARY

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MINISTERS MESSAGE

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It is with great pleasure that I
table the 2008-09 Budget and supporting documents for public review and discussion.

Many people have asked me  what
is your governments first budget going to be about? The answer is clear. Its
about keeping our promises, and making sure Saskatchewan is ready for growth.

This budget delivers on 40 of our
governments campaign promises, and it delivers the largest investment in
infrastructure in Saskatchewan history, to ensure our province is ready for growth.

This is a great time to live in
Saskatchewan. Our population is growing, our economy is on a roll, and Saskatchewan people
are optimistic about the future.

With our $1 billion Ready for Growth
Initiative, were making sure we have the infrastructure in place to grow in a
responsible, measured way. Weve seen what happens when growth exceeds the ability to
manage it  and we dont want to make the same mistakes.

Were providing more funds for
hospitals and health facilities, for schools, for roads and highways. We need the right
facilities and the right equipment to educate and train more students and doctors and
nurses. We need safe roads to carry the wheels of the economy and transport the important
goods we need every day.

Were providing a tuition rebate
to graduates who make their futures here in Saskatchewan, and are freezing university
tuitions. We want our young people to embrace all that Saskatchewan has to offer 
plentiful career opportunities, our vibrant cultural scene, and our outdoor oases of lakes
and rivers.

All Saskatchewan people will see
benefits in this budget. Were providing significant property tax relief for
businesses, homeowners, and farmers. Were providing funds for new agricultural risk
management programs, and increasing municipal revenue sharing grants.

Were building on Saskatchewan
peoples sense of pride in our province through increased funding to maintain and
enhance our parks. Were doubling the tax credits for caregivers and increasing other
tax credits to support people with disabilities. Were funding school lunch and
hunger programs. Were keeping people safe by directing more money towards addictions
treatment and sexual assault centres. Were making our communities safer by putting
more police on the streets.

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On top of our already announced
initiatives to fund more arthritis drugs and the cancer drug Avastin, we are taking steps,
in partnership with the Saskatchewan Union of Nurses, to address our nursing shortage.
This budget increases training seats for nurses and doctors and increases the Ministry of
Healths budget by over $300 million to better serve those who need care.

At the same time as our economy has
allowed us to fund these, and many more initiatives, we are mindful  always 
of the bottom line, and how we move forward. Sound fiscal management is paramount. This is
our governments first budget; it is a balanced budget that includes a $250 million
debt reduction to better position Saskatchewan for future generations.

We are ready for growth.

I invite you to browse this and other
related documents to discover for yourself how Saskatchewan people will benefit from
growth measures provided in Budget 2008-09.

/s/ Rod Gantefoer

Honourable Rod GantefoerMinister of Finance

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TABLE OF CONTENTS

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MINISTERS MESSAGE

|                                                                           | 
|-------------------------------------------------------------------------- | 
|2008-09 BUDGET SUMMARY                                                     | 
|Ready for Growth                                                           | 
|                                                                           | 
|TECHNICAL PAPERS                                                           | 
|Saskatchewans Economic Outlook                                            | 
|General Revenue Fund Financial Outlook                                     | 
|2007-08 General Revenue Fund Update                                        | 
|2008-09 Revenue Initiatives                                                | 
|Saskatchewans Tax Expenditures                                            | 
|2008 Intercity Comparison of Taxes, Utilities and Housing                  | 
|2008-09 Borrowing and Debt                                                 | 
|Growth and Financial Security Fund                                         | 
|Debt Retirement Fund                                                       | 
|Ready for Growth Initiative: Capital and Infrastructure Plan               | 
|                                                                           | 
|GENERAL REVENUE FUND (GRF) FINANCIAL TABLES                                | 
|GRF - Statement of Operations and Accumulated Deficit                      | 
|GRF - Statement of Change in Net Debt                                      | 
|GRF - Statement of Cash Flow                                               | 
|GRF - Schedule of Revenue                                                  | 
|GRF - Schedule of Expense                                                  | 
|GRF - Schedule of Debt                                                     | 
|GRF - Schedule of Borrowing Requirements                                   | 
|GRF - Schedule of Guaranteed Debt                                          | 
|                                                                           | 
|SUMMARY FINANCIAL STATEMENT (SFS) FINANCIAL TABLES                         | 
|Summary Statement of Surplus                                               | 
|Summary Statement of Changes in Net Debt                                   | 
|Summary Statement of Debt                                                  | 
|Tangible Capital Asset Schedule of Government Service Organizations (GSOs) | 
|Pension Liabilities                                                        | 
|Notes to the Summary Financial Budget                                      | 

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SASKATCHEWAN PROVINCIAL
BUDGET

08-09

BUDGET SUMMARY

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READY FOR GROWTH

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Since the election last November, our
government has clearly outlined our priorities: keeping our commitments, and ensuring
Saskatchewan is ready for growth. The 2008-09 Budget  the first budget of our new
administration  was developed to meet these objectives.

KEEPING OUR COMMITMENTS

A significant number of commitments
were made to Saskatchewan people in the election platform. This budget enables over 40 of
these to advance this year.

This document describes how these
commitments (highlighted in bold) and others are funded in the budget, shows how the
initiatives support governments priorities and are linked to Governments
vision for the province, and identifies the Ministry responsible for delivering on those
promises.

ENSURING SASKATCHEWAN IS
READY FOR GROWTH

Saskatchewan must be ready for
growth. Over the last several months, government has been focused on how to strategically
invest in Saskatchewan to ensure the current economic momentum translates into long-term,
sustained prosperity, and to make certain that the benefits of the growing economy are
felt by everyone who calls Saskatchewan home.

The cornerstone of a growing economy
is sound financial management by the government. In the early weeks of holding office, the
Government introduced the Growth and Financial Security Act with specific measures to
ensure balanced budgets and the appropriate use of surplus revenues. This Act also ensures
efficient government service delivery, with reviews on the efficiency of programming and
limits on the size of the public service.

Our economy is thriving 
Saskatchewan is an economic leader and a have province. Theres a new
confidence in our province and people are noticing. Our resource-based economy 
while volatile  is extremely diversified, and new and innovative opportunities are
bringing people to Saskatchewan.

The following economic indicators
demonstrate Saskatchewans increasing strength within Canada.

VALUE OF RETAIL SALES,
VALUE OF WHOLESALE TRADE,
MOTOR VEHICLES SALES (#s) AND
VALUE OF INTERNATIONAL EXPORTS

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|6 | Budget
2008-09/Budget Summary
|- | -----------------------------

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Saskatchewans total capital investment
has increased by $3.6 billion (52.1 per cent) over the past 10 years and is expected to
reach a record high of $12.3 billion this year, up 18.0 per cent from 2007; the second
highest level of growth after Manitoba. In comparison, total capital investment in Canada
as a whole is expected to grow by 5.2 per cent this year.

Governments challenge is to
invest strategically, pay down debt, and manage unpredictable revenues to ensure the
current positive economic climate turns into lasting prosperity, helping to improve the
quality of life for all Saskatchewan people.

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|Budget
2008-09/Budget Summary | 7
|----------------------------- | -

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The Ready for
Growth Initiative

A $1 Billion Investment
in Our Future

Saskatchewans time is now. But
if our province is to sustain our economic momentum, we must be ready for growth. We must
ensure we have the infrastructure in place to support a growing economy and a growing
population, so we can avoid the problems associated with rapid growth experienced in other
jurisdictions where investment in infrastructure has fallen behind the pace of growth.

Simply put, we need to ensure we have
the hospitals, highways, schools and other capital requirements needed to support a
growing economy and a growing population.

The time for that investment is now.
With increased revenues coming into our province, the government has a greater ability to
invest in our infrastructure, to ensure our communities, highways and roads can keep pace
with the growth in our population and the increased demand on our transportation systems.

That is why this year, government is
introducing an unprecedented $1.0 billion investment in infrastructure to be known as the
Ready for Growth Initiative. This initiative brings together resources and allows
government to refocus its capital efforts on long-term economic and social investments.
This approach positions the province well to lever federal infrastructure dollars and
explore public-private partnerships.

In 2008-09, the government will
invest a record $829.1 million in capital and infrastructure. The plan includes $594.0
million in base capital funding and an increase of $235.0 million. This increase is 55 per
cent over the capital expenditures planned in 2007-08 and it doubles the capital
expenditures of just four years ago. The remaining investments making up the $1.0 billion
initiative will flow as industry capacity permits, however the monies have been set aside.

In addition to $594.0 million in base
capital funding, (details are referenced later in this document), the increase of $235.0
million in 2008-09 includes:

| | $35.0
million for Highways, bringing the total investment in 2008-09 from the proceeds of the
NewGrade upgrader sale to $70 million
|- | -----------------------------------------------------------------------------------------------------------------------------------

| | $100.0
million for health facilities primarily to address urgent capital maintenance issues
|- | -------------------------------------------------------------------------------------------

| | $100.0
million for school construction and repairs
|- | --------------------------------------------------

The state of our infrastructure
across the province will improve dramatically with this investment. The 2008-09 capital
budget for Highways and Infrastructure is $256.2 million ($238.0 million government-owned
and $18.2 million third-party capital) and includes half of the $140 million in proceeds
from the sale of the NewGrade upgrader, a key part of governments Ready for Growth
Initiative. The proceeds will be spent over two years instead of four years.

The 2008-09 capital budget of $256.2
million in Highways and Infrastructure includes:

| | $147.9
million for enhancement of the provincial highway system, including completion of
twinning of Highways 1 and      16, continued progress on twinning Highway 11, funding to
support urban highway connectors, and upgrades to rural and northern      roads
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $88.2
million for major rehabilitation of the provincial transportation system, which will
provide improvements and      upgrades to 300 km of highways and an increased focus on
maintenance, upgrades and replacement of bridges and culverts
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $5.0
million for the Municipal Resource Roads Program to support municipalities that
experience high truck traffic      volumes on roads that access natural resources
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $15.1
million for the Canada-Saskatchewan Infrastructure Program as well as capital equipment
and buildings
|- | -----------------------------------------------------------------------------------------------------------

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|8 | Budget
2008-09/Budget Summary
|- | -----------------------------

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Other key components of the Ready
for Growth Initiative will invest in our schools, health facilities and post-secondary
institutions to ensure our infrastructure keeps pace with the demands of a growing
province.

$117.6 million will be provided for
education through the new Ready for Growth Initiative:

| | $100.0 million
increase for school capital will allow major and much needed maintenance upgrades
to proceed across      the system, including new school projects in Saskatoon, Regina,
Prince Albert, Oxbow, Porcupine Plain, Duck Lake, La Ronge, Maple      Creek, Balcarres,
and Humboldt, and upgrades in progress in Norquay, Naicam, Yorkton, Prince Albert,
Saskatoon and Gravelbourg      [EDU]*
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $17.6 million
in base school capital will fund maintenance and renovation projects across the
province and will      enable the Ministry to work with school divisions on enhanced
capital planning initiatives [EDU]
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

$45.8 million will be provided for
post-secondary capital projects to meet the needs of the universities for ongoing
maintenance in existing buildings and additional capital required to accommodate the
nursing seat expansion. [AEEL]

The 2008-09 capital budget for
Health is $191.1 million which is comprised of:

| | $100.0 million
in new funding is being provided, primarily to address urgent health facility
maintenance and repair      needs across the system.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------

| | $31.9 million
to continue regional health facility projects and major upgrades already underway
(Regina General      Hospital Maternal and Newborn Care, Humboldt Integrated Facility,
Saskatoon Mental Health, Oliver Lodge Long-Term Care Facility      (Saskatoon), and
renovations at St. Pauls Hospital in Saskatoon to accommodate the provinces fifth MRI
machine) [HE]
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $29.9 million
for medical equipment, including diagnostic imaging equipment and patient lifts
to improve workplace      safety for health care providers and patient care [HE]
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $29.3 million
to continue work on the new Saskatchewan Disease Control Laboratory, and purchase
information      technology and laboratory equipment [HE]
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

$140.0 million in funding for
municipal capital projects includes:

| | $101.7 million
 in provincial and federal funding for municipal capital and infrastructure,
including the Municipal      Primary Weight Corridor Program [MA], and the Municipal
Resource Roads Program [HI]
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $37.4 million
 for cultural and recreational facilities through the Building Communities Program
[TPCS]
|- | -------------------------------------------------------------------------------------------------------

Other major government-owned and
third-party capital projects totalling $60.6 million are:

| | $22.2 million
 to repair and construct government buildings, including the Regina and Saskatoon
Provincial      Correctional Centres, and improve courthouse security [CPSP, GS]
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $11.3 million
for the Provincial Radio Telecommunications System to replace the FleetNet system
[CPSP]
|- | ------------------------------------------------------------------------------------------------------

| | $27.1 million
 to upgrade the aerial fire fighting fleet, to replace fire towers and improve
fire operations [ENV]
|- | ------------------------------------------------------------------------------------------------------------------

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*   For a full list of Ministry
acronyms, please see page 20

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|Budget
2008-09/Budget Summary | 9
|----------------------------- | -

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Investing in Our Communities

Government has committed to greater
investments in our cities and communities to ensure they are ready for growth. The time
is right for increased investments as the indicators show that Saskatchewan is leading
the nation in housing starts and in the value of building permits:

The Saskatchewan Infrastructure
Growth Initiative fulfills governments commitment to assist municipalities with the
costs of lot development to support housing, commercial and industrial construction. This
initiative provides $300.0 million over four years for five-year interest-free loans.
$75.0 million in interest-free loans will be provided in 2008-09. [MA]

This budget fulfills
governments commitment to increase municipal revenue sharing by seven per cent to a
total of $130.1 million for 2008-09. In addition, this budget provides additional support
to meet increased demand for subdivision approvals. [MA]

$32.8 million is being provided for
the federal and provincial shares of municipal infrastructure funding through the
Municipal Rural Infrastructure Fund (MRIF), the new Building Canada Fund (BCF) 
Communities Component, and through Urban Development Agreements for Regina and Saskatoon.
Also, $20.9 million is being provided for other municipal financial assistance grants
including Transit for the Disabled, Grants in lieu of taxes, and to support operations of
the Saskatchewan Assessment Management Agency. [MA]

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|10 | Budget
2008-09/Budget Summary
|-- | -----------------------------

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$32.4 million is being provided
through the federal Gas Tax Program reflecting the flow-through of federal gas tax
funding for municipalities. [MA]

Building Pride in Our
Province

To help promote our province and
build pride in Saskatchewan, the government is investing:

| | $8.0 million
to double funding for tourism marketing, capital investments, improved highway
signage and enhanced partnerships ($16.0 million total)
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | The
budget contains over $6.0 million to continue base support for the Saskatchewan Arts Board
|- | ----------------------------------------------------------------------------------------------

| | $4.2
million to maintain the level of support provided for provincial arts organizations
|- | ----------------------------------------------------------------------------------------

| | The
Parks budget increases by $5.0 million to over $25.0 million. The new funding includes
$1.2 million to electrify 274 campsites (first year of the commitment for 1,000 new
electrified sites). This funding will also improve parks operating, infrastructure,
security, customer service, ecosystem/cultural conservation and interpretation
programming, and enhance regional parks
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $700,000
to establish the Capital City Commission and provide funding for the planning and first
phase of the initiative
|- | ------------------------------------------------------------------------------------------------------------------------

| | $3.8
million, an $800,000 increase to the Western Development Museum
|- | --------------------------------------------------------------------

| | $9.3
million, a $3.2 million increase for the Community Initiatives Fund through increased
gaming revenue [TPCS]
|- | ----------------------------------------------------------------------------------------------------------------

This budget provides new funding of
$10.0 million for Green Initiatives, for a total of $17.5 million, which will advance
initiatives such as:

| | $1.0
million, as committed, for the Petroleum Technology Research Centreand the International
Test Centre for CO2 Capture[ER]
|- | -----------------------------------------------------------------------------------------------------------------------------

| | $1.2
million for projects to reduce flaring and increase carbon sequestration. The initiative
supports lower costs and reliable methods to reduce pollutants and greenhouse gas
emissions while improving the efficiency and competitiveness of the petroleum industry
and encouraging enhanced oil recovery using carbon dioxide [ER]
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $7.8
million for other green initiatives [ENV]
|- | ----------------------------------------------

As a commitment to finding
alternative sources of energy:

| | The
SaskBio Program, a four-year program to encourage Saskatchewan investment ownership in
bio-fuels facilities, will be continued with funding of $3.25 million. Changes to the
program announced in February, which are intended to allow more flexibility for bio-fuel
projects to access the program, have been implemented [EI]
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Continue
$21.0 million in funding for the Ethanol Fuel Tax Rebate program [EI]
|- | ------------------------------------------------------------------------------

Other environmental initiatives
funded in this budget include:

| | $1.0
million for the North West Sustainable Development Plan which will provide
recommendations on balancing both the economic growth and protection of the environment
in the northwest part of the province [ENV]
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $13.9
million for SARCAN, an increase of $2.9 million to continue the operation of the Beverage
Container Program [ENV]
|- | -----------------------------------------------------------------------------------------------------------------------

| | The
Ministries of Environment, Agriculture, Health, Municipal Affairs, Saskatchewan Watershed
Authority and SaskWater work together to carry out governments commitment to ensure
clean drinking water for communities
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

All ministries are taking leadership
in environmental stewardship to conserve energy and reduce governments environmental
footprint. In addition, steps will be taken to promote environmental awareness in our
schools. [EDU]

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|Budget
2008-09/Budget Summary | 11
|----------------------------- | --

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SUSTAINING OUR ECONOMIC
MOMENTUM

The 2008-09 Budget makes strategic
investments to sustain the Provinces economic growth, to reduce taxes and to pay
down debt. As promised, these decisions are incorporated within the parameters of a
balanced budget.

A strengthened economy provides the
opportunity for tax reduction. In November 2007, Government announced elimination of the
provincial sales tax on used light vehicles, at a cost of $32.0 million annually.

This budget furthers
Governments commitment to reduce the burden of education property taxes on
homeowners and on commercial, industrial and agricultural property owners.

A $48.7 million increase for
education property tax relief, totalling $156.6 million for 2008-09, is the first step
toward Governments commitment of doubling the education property tax credit over
four years. The agricultural portion of the credit will go from 38 per cent to 47 per cent
and the residential and commercial portions will go from 10 per cent to 12 per cent. This
expanded education property tax credit is a temporary measure until a long-term solution
to funding education is determined. [EDU]

As committed, $250.0 million will be
put towards a debt payment to reduce interest costs and to work towards Governments
long-term objective of eliminating the debt. [Finance]

In addition, the Mineral Exploration
Tax Credit will be reintroduced at a cost of $2.0 million annually. [ER]

Highly Effective
Transportation Systems

As our provinces transportation
system is a key element in sustaining the provinces economic momentum, the
government plans to exceed its original commitment by providing over $2.0 billion over
four years to be invested into the transportation system.

As indicated in the earlier section
in this document related to the infrastructure initiative, other highlights for the
Ministry of Highways and Infrastructures (HI) 2008-09 budget include the election
commitment to provide $140 million from the sale of the NewGrade upgrader over two years
for municipal and provincial highway improvements, instead of over four years.
Infrastructure investments supported by the $70 million in NewGrade proceeds in 2008-09
include:

| | $30 million
for urban municipal projects
|- | ----------------------------------------

| | $10
million for bridge capital construction
|- | -------------------------------------------

| | $30
million for strategic rural corridors
|- | -----------------------------------------

Overall, the highlights of the
2008-09 budget for Highways and Infrastructure include:

| | $202.6
million for preservation and rehabilitation of the provincial transportation system, as
part of the Ministrys stewardship strategy for the existing transportation system
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $102.1
million for policy advice and daily operation of the transportation system including road
safety, transport compliance, seasonal maintenance activities, and engineering and
management of preservation and capital construction programs
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $54.1
million for the Rural Road Strategy, including Thin Membrane Surface (TMS) upgrades and
Primary Weight Roads
|- | ------------------------------------------------------------------------------------------------------------------

| | $28.1
million for the enhancement of International Gateway Corridors, which completes twinning
projects on Highway 1 and 16 and continues previously committed work on Highway 11
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|12 | Budget
2008-09/Budget Summary
|-- | -----------------------------

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| | $11.3
million to complete work on the road to Witchekan Lake First Nation, Cyr Road (near Big
River), improvements to Highway 55, and the access road to Red Earth First Nation
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $6.1
million for the Northern Roads Strategy, including funding for Garson Lake Road,
Wollaston Lake Road and the completion of other northern road projects
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $19.4
million for the maintenance, repair, and rehabilitation of bridges and culverts which
includes an incremental $9 million invested in capital for a new bridges and culverts
strategy to address public safety concerns
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $16.5
million for the new Urban Highway Connector program which provides for the implementation
of agreements to provide operating and maintenance for the municipal transportation
system, as well as rehabilitation costs of urban highway connectors, and new capital
projects
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Investments to Encourage
Innovation

This budget makes strategic
investments in some of the most innovative sectors of our province:

| | Incremental
funding of $3.0 million (total grant funding of $12.1 million) will be provided to the
Saskatchewan Research Council for a bioenergy team and an oil sands industry team and the
supporting capacity for each [SRC]
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $15.2
million for agricultural research, an increase of $1.6 million, which includes $1.0
million in additional project funding for the Agriculture Development Fund, as well as
funding for the Strategic Research Program at the University of Saskatchewan, and the
Prairie Agricultural Machinery Institute [AG]
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $1.5
million for a web-based mineral disposition system, which will result in fast, accurate
and efficient registration of land disposition. The initiative reflects a nearly tenfold
increase in the value of mineral exploration since 2001 [ER]
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Continued
funding of $5.1 million in anticipation of a renewed Western Economic Partnership
Agreement (WEPA) which fosters economic development [EI]
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | Continued
funding of $3.8 million for the Strategic Investment Fund which contributes to building
technological and research capacity [EI]
|- | ------------------------------------------------------------------------------------------------------------------------------------------

| | $5.9
million in the Innovation and Science fund to further the provinces commitment to
the construction of the InterVac facility (level III bio-containment facility) at the
University of Saskatchewan Campus [AEEL]
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Legislation was introduced in 2007-08
to create Enterprise Saskatchewan which will help sustain our provinces economic
momentum through the collaboration of stakeholders such as labour, business,
post-secondary institutions, municipalities and the Aboriginal community.

$7.4 million is being transferred
from existing budgets and $1.0 million in incremental funding is being provided in 2008-09
to create Enterprise Saskatchewan. [EI]

To support our diverse agriculture
sector, the province is investing:

| | $91.5
million to fully fund AgriStability and AgriInvest (formerly known collectively as the
CAIS program) as improved income support for producers. A new producer savings account
known as AgriInvest will be funded by redirecting funding previously used to provide the
top 15 per cent of margin coverage under CAIS; the remaining coverage will continue as
the AgriStability program [AG]
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $129.8
million for Crop Insurance, an increase of $25.8 million, while undertaking a review to
determine how this program could be broadened and made more affordable for producers [AG]
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|Budget
2008-09/Budget Summary | 13
|----------------------------- | --

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Education and Training
for Our Youth

In order to ensure our economy keeps
growing, the government has a role to play in ensuring our labour market needs are met,
that young people have access to affordable education and that our institutions are
flexible enough to respond to new demands.

This budget fulfills the commitment
for a Graduate Retention Program, which will provide post-secondary graduates with tuition
rebates of up to $20,000 over the seven years following graduation. This will require
$12.0 million in 2008-09, administered through the income tax system. [AEEL]

The Ministry of Education provides
programs, services and grants that directly support the operation of the pre-kindergarten
to grade 12 education system for the 729 schools and 161,261 students in 28 school
divisions. This budget provides a $34.6 million increase to school operating funding for a
total of $621.1 million to fulfill the first year of the Governments commitment to
increase these grants by 20 per cent over four years and will fully fund teachers
salary increases.

School operating funding also
includes [all EDU]:

| | $1.0
million to introduce Schools of Opportunity funding where demonstrated
changes in a communitys local economy may result in a school facing closure being
able to stay open
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $500,000
in new funding for school lunch and anti-hunger programs in community schools
|- | --------------------------------------------------------------------------------------

| | $3.0
million increase to the Intensive Supports factor, providing a total of $67.4 million to
support programming for students with learning difficulties, disabilities, and
disadvantages
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $2.0
million increase for 38 pre-kindergarten programs for vulnerable three- and
four-year-olds, increasing total pre-kindergarten funding to $7.9 million and total
programs to 193; this program serves over 3,000 children
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In keeping with the commitment to
maintain funding for child care, early learning and early childhood development at $267.0
million over four years, $45.3 million is being provided through the Ministry of Education
in 2008-09. Other funding related to this commitment is included in school operating
funding for pre-kindergarten programming and in the Ministries of Health and Social
Services.

Education funding in this area for
2008-09 includes:

| | $33.8
million for child care facilities, an increase of $3.4 million (11.3 per cent) to provide
500 additional child care spaces, for a total of 10,350 spaces, and a 4.0 per cent wage
lift for child care workers, and to maintain the array of nutrition, special needs and
staff training supports for 190 child care centres and 275 family child care homes [EDU]
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $7.5
million in funding for the provinces Early Childhood Development/KidsFirst
strategy, including inflationary increases for ELCC service providers and $300,000 in
additional funding for Early Childhood Intervention Programs to maintain support and
home-based intervention to over 600 children at risk of developmental delays. $9.5
million is provided for KidsFirst programming in the Ministry of Health [EDU and HE]
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $4.0
million is being provided for Educations Early Learning and Child Care Unit
including continued funding for ELCC program guides and supports [EDU]
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, the 2008-09 Budget for
the Ministry of Education provides:

| | $8.3
million for grants to public libraries, including inflationary increases to grants and an
additional $400,000      to maintain library Internet connectivity
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $2.1
million for community-based literacy funding to maintain the Literacy Innovations Fund
and grants for the network of 30 organizations that deliver adult and family literacy
services
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|14 | Budget
2008-09/Budget Summary
|-- | -----------------------------

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The 2008-09 Budget exceeds the
governments commitment to provide a $125 million increase in funding over four
years, to ensure post-secondary institutions contribute to the goals of building an
innovative economy, increase training and educational seats and keep tuition affordable
for students. This budget provides $38.1 million to assist post-secondary institutions in
keeping tuition costs affordable for students [all AEEL]:

| | $25.5
million, an 8.4 per cent increase for universities to freeze tuition for the fourth
consecutive year (total funding of $333.9 million for universities)
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $6.2
million increase to SIAST, regional colleges, and the Apprenticeship and Trade
Certification Commission (total funding to these institutions is $167 million)
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Other
expenditures include a portion of the Labour Market Agreement (LMA) related to targeted
funding for the training sector to increase training seats and hire additional program
co-ordinators and student counseling staff
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In total, $15.1 million in new
funding is being invested to enhance training opportunities for non-Employment Insurance
eligible individuals as the first year of a new six-year Labour Market Agreement (LMA)
signed with the federal government. This includes targeted funding of:

| | $5.0
million to meet the commitment to provide increased support to food banks and
community-based organizations to provide life skills, development and employment training
to under-skilled individuals
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $545,000
to expand industrial mechanics and carpentry seats at SIAST (45 seats)
|- | -------------------------------------------------------------------------------

| | $1.5
million for enhanced learner and employer support services through the regional colleges
|- | ---------------------------------------------------------------------------------------------

| | $235,000
for increased program co-ordination and student services at the Dumont Technical Institute
|- | ---------------------------------------------------------------------------------------------------

| | $650,000
to add training seats through the Apprenticeship and Trade Certification Commission (250
seats)
|- | --------------------------------------------------------------------------------------------------------

| | $1.1
million in operating and training funds for the Regina and Saskatoon inner-city Trade and
Skills Centres
|- | -------------------------------------------------------------------------------------------------------------

| | $500,000
for an essential skills pilot to prepare low-skilled job seekers to gain and retain
meaningful long-term employment
|- | ------------------------------------------------------------------------------------------------------------------------------

| | $2.6
million for income supports to assist with training costs for individuals on social
assistance who are unable to qualify for student loans or the Skills Training Benefit
[AEEL]
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Ministry of Advanced Education,
Employment and Labour will also contribute investments to post-secondary institutions for
various health profession training programs (which are elaborated on later in this
document related to their impact on the health care system) [AEEL]. $250,000 will also be
provided as additional support to the Johnson-Shoyama School of Public Policy. [PSC]

The Government is committed to
strengthen the partnership between First Nations and non-First Nations people by providing
supports to First Nations and Métis people to facilitate full participation in the
growing economy. This budget provides:

| | $14.0
million increase for a total of $50.9 million for the First Nations Trust, Community
Development Corporations and Métis Development Fund based on current gaming profit
estimates and amendments to the gaming framework agreement
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $4.2
million to address provincial financial obligations for five Treaty Land Entitlement
agreements
|- | ----------------------------------------------------------------------------------------------------

| | $1.0
million to increase First Nations and Métis Consultation capacity fund for a total
of $3.0 million to meet governments commitment to consult with Aboriginal people
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 15
|----------------------------- | --

---

| | $200,000
for the commitment to host a Roundtable on Aboriginal Consultation
|- | ---------------------------------------------------------------------------

| | $2.0
million for the Northern Development Fund (NDF) Loan Program to help facilitate business
development and diversification, and create jobs in northern Saskatchewan
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $500,000
to continue the NDF grant program to promote self-reliance and support northern
employment and business development
|- | ----------------------------------------------------------------------------------------------------------------------------

| | $125,000
to honour and support the Bilateral Protocol with the FSIN to ensure increased capacity
to undertake research and analysis into issues of mutual concern and to meet to resolve
concerns
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $750,000
in 2008-09 and 2009-10 for the First Nations and Métis Economic Development
Program. This program makes grants available to Aboriginal business entrepreneurs to
create more Aboriginal businesses, with a spin-off effect of more jobs for Aboriginal
people [all above FNMR]
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Further
to the newly signed Labour Market Agreement, $1.0 million will be dedicated to add 200
new training opportunities for on-reserve Adult Basic Education through the regional
colleges. In addition, the Saskatchewan Indian Institute of Technology (SIIT) will be
given $500,000 to deliver 100 new seats in this area [AEEL]
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $1.1
million in total for the Aboriginal Employment Development Program to build partnerships
and lines of communication between employers, training institutions and Aboriginal people
[FNMR]
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ENSURING SASKATCHEWAN
PEOPLE BENEFIT FROM A GROWING ECONOMY

A strengthened economy provides the
ability to ensure the benefits are returned to the residents of this province 
through improved health care, a stronger education system, safer communities, and measures
to protect the most vulnerable people in our society.

Government made a commitment to
introduce a benefit for families with children aged 6 to 14 who are active in cultural,
recreational or sports activities. This budget furthers this commitment by approving the
Active Saskatchewan Families Benefit, a $150 per year, per child, refundable tax credit
which will be implemented in the next taxation year. Details of the program will be
announced as they are finalized. [TPCS]

The Government has eliminated the
campfire permit fee saving people money as they enjoy our Saskatchewan parks. [TPCS]

A Stronger Health Care
System

The Government is committed to
providing all Saskatchewan citizens with access to a comprehensive, publicly-funded, and
publicly-administered health care system that ensures access to core health programs,
including the drug plan and extended benefit plans.

This budget provides $2.29 billion
for Regional Health Authority targeted and base operating funding (an increase of $123.9
million) to deliver health services, and $89.2 million (an increase of $10.7 million) to
the Saskatchewan Cancer Agency to strengthen support for cancer care and prevention.

---

|16 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

The government recently announced a
partnership agreement with the Saskatchewan Union of Nurses (SUN) to work together to
solve the provinces shortage of registered nurses (RNs) and registered psychiatric
nurses (RPNs). This historic agreement commits to hiring 800 new nurses by 2011. $60.0
million provided in 2007-08 and international recruitment efforts will help to reach the
provinces goal of filling 600 vacancies and adding an additional 200 nurses within
the next four years.

As part of this commitment, AEEL will
provide $10.5 million, including capital investments, to post-secondary institutions for a
120 seat expansion of the Nursing Education Program resulting in 520 funded seats per year
by 2009-10. An additional $20.7 million ($26.0 million in total) will be invested by
Health for nurse recruitment and retention, including equipment, such as patient lifts, to
support nurses in the workplace. [HE]

With respect to physician training,
recruitment and retention, $3.2 million is being provided by AEEL and $1.8 million ($31.6
million in total) by Health to expand medical student seats to 100 and physician residency
seats to 120 by 2010-11, increasing our capacity to train physicians for Saskatchewan.
[AEEL and HE]

The Ministry of Health is allocating
$1.1 million ($56.1 million in total) for further physician recruitment, retention and
additional medical seats for internationally trained medical graduates; this includes
adding two physicians and a second Medical Health Officer in the north. [HE]

$3.4 million is being invested by
AEEL in training for other health care professionals and to fund ongoing activity to
maintain the College of Medicines Accreditation status. [AEEL]

In addition to investing in the
training, recruitment and retention of health professionals, the 2008-09 Budget includes
other important commitments to improving the overall quality of health care provided in
Saskatchewan [all initiatives are from the Ministry of Health unless otherwise indicated]:

| | $6.1
million to add new prescription drugs to the Formulary and an additional $700,000 to
expand the $15 cap on prescription costs to children aged 14 years and under while
income-testing the current seniors drug plan component ($294.2 million in total)
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $10.7
million for cancer drugs, supplies and operating costs for the Cancer Agency. This also
includes $3.9 million for the cancer drug Avastin to treat patients with advanced
colorectal cancer ($89.2 million in total)
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $1.0
million to develop a 10-year health sector human resource plan, a 10-year capital plan
and a Seniors Health Care Strategy, to improve the continuum of care for seniors
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $5.1
million for an additional 88 addictions treatment beds to be added at various facilities,
including a youth treatment facility and a family-centred treatment facility in Prince
Albert, social and brief detox facilities in Regina and Prince Albert, and renovations to
the Calder Centre in Saskatoon
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $2.5
million to address increasing renal dialysis volumes
|- | ---------------------------------------------------------

| | $2.9
million for Human Papilloma Virus vaccinations to help prevent cervical cancer
|- | -----------------------------------------------------------------------------------

| | Additional
$1.9 million ($3.7 million in total) to reduce waitlists and wait times for diagnostic
imaging (MRI, CT and bone mineral density) services
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | $1.5
million to undertake a Patient First Review of the health care system which
will lead to an improved and more responsive health care system
|- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | $250,000
for Patient Exit Surveys to measure and report on the quality of patients experience
with the health care system
|- | --------------------------------------------------------------------------------------------------------------------------

| | Legislation
is under development to establish the Health Care Ombudsman [JAG]
|- | -----------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 17
|----------------------------- | --

---

Safer Communities,
Stronger Families

This budget ensures that the election
commitments towards creating safer communities are funded. In 2008-09, the budget for
Corrections, Public Safety and Policing (CPSP) increases programming resources for adult
offenders and public safety programs by $7.0 million ($85.6 million in total).

The 2008-09 Budget:

| | Provides
$3.0 million in funding ($128.0 million in total) for 30 additional police officers and
for public safety commitments, including more corrections officers and program staff, and
enhancements to substance abuse treatment and supportive employment programs for
offenders
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Provides
$8.7 million in incremental funding for a total of $117.5 million to the RCMP contract
for provincial policing with resources targeted to combat organized crime and Internet
child exploitation
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Provides
$1.1 million in new funding ($9.3 million in total) for municipal police services [CPSP]
|- | -------------------------------------------------------------------------------------------------

As committed, the Victim Surcharge is
increased in this budget to ensure the stability of the Victims Fund and the many
programs and services that it provides to victims of crime. [JAG]

Other measures in the budget
targeting safety and security include:

| | $3.9
million in Family Justice Services to support families, including enforcement of child
support payments and custody and access payments
|- | --------------------------------------------------------------------------------------------------------------------------------------------

| | $2.8
million in new Courts Capital funding to expand video-conferencing and to support
planning of a new courthouse for La Ronge, and planning for an addition to the Saskatoon
courthouse
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $430,000
for implementation of a Domestic Violence Court in Regina, similar to courts in Saskatoon
and North Battleford
|- | -----------------------------------------------------------------------------------------------------------------------

| | Completion
of airport-style court security in Regina, Saskatoon and Prince Albert
|- | ---------------------------------------------------------------------------------

| | $19.9
million for the Legal Aid Commission which provides legal services to Saskatchewan
residents who cannot afford to hire private counsel, an increase of $1.3 million
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $5.5
million for Marketplace and Consumer Protection activities, including an increase of
$113,000 for two securities fraud investigators to protect Saskatchewan investors [all
JAG]
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This budget provides supports to
protect societys most vulnerable people, helping to increase the safety of our
communities:

| | $1.1
million in increased funding for transition houses and sexual assault centres to
strengthen services to women who are sexually assaulted and/or are the victims of
domestic violence ($5.9 million in total)
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $500,000
in one-time funding to host a summit of Community-Based Organizations (CBOs) in 2008 with
the objective to develop a new social policy direction for Saskatchewan
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $298.5
million in total funding for income assistance programs, including $1.1 million for
enhancements to Rental Housing Supplements and a $1.1 million increase for Child Care
Parent Subsidies due to a projected increase of 250 cases based on an in-year decision
and mid-year funding to increase the number of licensed child care spaces by 500 [SS]
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|18 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

The Ministry of Social Services will
begin refinements to the Saskatchewan Assistance Plan, which will result in $1.1 million
in cost savings in 2008-09 and will increase sustainability of the program over time. The
initiative is intended to:

| | Promote
job readiness, by providing more opportunities to gain access to employment and skills
programs, and reduce      welfare dependency
|- | -------------------------------------------------------------------------------------------------------------------------------------------

| | Create
a more streamlined income assistance service delivery system and result in more efficient
use of resources
|- | -----------------------------------------------------------------------------------------------------------------

| | Simplify
benefit structures, reduce administrative requirements, and invest in necessary
technological upgrades [SS]
|- | --------------------------------------------------------------------------------------------------------------------

The Government made a commitment to
double the Caregiver Tax Credit that provides tax relief to those individuals providing
in-home care for an adult infirm dependent relative, or a parent or grandparent aged 65
and over. This budget invests $3.0 million in additional support for the disabled:

| | Doubles
the Caregiver Tax Credit from $4,095 to $8,190
|- | ------------------------------------------------------

| | Doubles
the Infirm Dependant Tax Credit from $4,095 to $8,190
|- | -------------------------------------------------------------

| | Doubles
the Disability Supplement Tax Credit from $4,095 to $8,190
|- | ------------------------------------------------------------------

| | Increases
the Disability Amount for Self Tax Credit from $7,021 to $8,190 [Finance]
|- | -----------------------------------------------------------------------------------

In addition, enhancements are being
made to programs for people with intellectual disabilities, such as:

| | $2.9
million for a 2.3 per cent salary increase for approximately 300 CBOs; this includes a
$1.6 million increase to support a network of 81 CBOs providing residential, day program,
advocacy and family support services for individuals with intellectual disabilities. More
than 1,300 community-based positions are funded in this sector for a total budget of
approximately $75 million
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $2.4
million to support a growing caseload of individuals with intellectual disabilities
accessing residential and      day programs
|- | ------------------------------------------------------------------------------------------------------------------------------------

| | $400,000
increase, to $1.9 million, for the disability housing supplement
|- | -------------------------------------------------------------------------

| | $700,000
increase to support the Cognitive Disabilities Strategy, including $500,000 in enhanced
funding to address the growing demand for the program, for a total budget of $2.8 million
[SS]
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This budget makes enhancements to
child protection programs, including:

| | $5.0
million for 30 additional child protection case workers and 30 permanency placement
planners to handle the 27 per cent increase since 2003 in the caseload of children in
care of the Ministry
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $7.5
million will assist with a 15 per cent increase in foster care rates and an average rate
increase of 41 per cent for extended family caregivers, effective September 1, 2007, plus
an inflationary increase of 2 per cent, effective April 1, 2008 ($43.0 million total)
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $5.5
million ($22.1 million total) for 80 additional out-of-home spaces, including alternate
care, foster care, stabilization centres, therapeutic foster care, adolescent group
homes, and treatment group homes, for children in care of the Ministry [SS]
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Saskatchewan Housing Corporation
(SHC) provides a continuum of housing programs and services, including social and
affordable rental housing, home renovation, repair and energy retrofit programs, supports
to independent living for seniors, and homeownership options.

SHC manages and provides subsidies
for approximately 31,000 social and affordable housing units, which house about 67,000
people in over 300 communities across the province.

---

|Budget
2008-09/Budget Summary | 19
|----------------------------- | --

---

This budget continues a wide range of
housing programs including over $110 million in federal and provincial funding:

| | $60
million for the provincial Neighbourhood Revitalization Housing Initiative which targets
inner city neighbourhoods in major urban centres and northern communities
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $50.6
million in federal funding provides for the Affordable Housing Program and the Aboriginal
Housing Program
|- | ---------------------------------------------------------------------------------------------------------------

Currently there are almost 900
affordable housing units at various stages of development targeted to come on stream over
the next 12 to 18 months. In addition, the previously noted rental housing supplement
increase, implemented by Social Services in October 2007, continues with new funding of
$1.1 million provided in this budget. [SS]

The 2008-09 Budget:
Keeping Our Promises; Ready for Growth

This budget helps government deliver
on its promises. A great number of commitments made to Saskatchewan people will be
advanced this year, with additional commitments to be fulfilled over the coming years.

This budget focuses on getting ready
for growth by investing in infrastructure across the province, and making investments in
communities and in our health and education systems so that there are even more reasons
for people to call Saskatchewan home.

We are on our way to ensuring that
lasting economic prosperity will benefit all Saskatchewan people.

For clarification, here is a list of
acronyms used in this document:

|[AEEL] |  | Advanced
Education, Employment and Labour
|------ |  | -----------------------------------------

|[AG] |  | Agriculture
|---- |  | -----------

|[CPSP] |  | Corrections,
Public Safety and Policing
|------ |  | ---------------------------------------

|[EDU] |  | Education
|----- |  | ---------

|[ER] |  | Energy
and Resources
|---- |  | --------------------

|[EI] |  | Enterprise
and Innovation
|---- |  | -------------------------

|[ENV] |  | Environment
|----- |  | -----------

|[FNMR] |  | First
Nations and Métis Relations
|------ |  | ---------------------------------

|[GS] |  | Government
Services
|---- |  | -------------------

|[HE] |  | Health
|---- |  | ------

|[HI] |  | Highways
and Infrastructure
|---- |  | ---------------------------

|[JAG] |  | Justice
and Attorney General
|----- |  | ----------------------------

|[MA] |  | Municipal
Affairs
|---- |  | -----------------

|[PSC] |  | Public
Service Commission
|----- |  | -------------------------

|[SRC] |  | Saskatchewan
Research Council
|----- |  | -----------------------------

|[SS] |  | Social
Services
|---- |  | ---------------

|[TPCS] |  | Tourism,
Parks, Culture and Sport
|------ |  | ---------------------------------

---

|20 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

SASKATCHEWAN PROVINCIAL
BUDGET

08-09

TECHNICAL PAPERS

---

---

SASKATCHEWANS
ECONOMIC OUTLOOK

---

RECENT PERFORMANCE

Saskatchewans economy has
performed well over the last several years in comparison to other provinces.

The one exception was 2006, due to
weak potash sales, the closure of Prince Alberts pulp and paper mill, and a smaller
crop.

REAL GDP GROWTH COMPARISON
(Per Cent)

|                          | 2004 | Rank | 2005 | Rank | 2006 | Rank
|------------------------- | ---- | ---- | ---- | ---- | ---- | ----
|Newfoundland and Labrador |      |      |      | (1.7 | )    |     
|Prince Edward Island      |      |      |      | 3.0  |      |     
|Nova Scotia               |      |      |      | 1.4  |      |     
|New Brunswick             |      |      |      | 1.4  |      |     
|Québec                    |      |      |      | 2.6  |      |     
|Ontario                   |      |      |      | 2.5  |      |     
|Manitoba                  |      |      |      | 2.6  |      |     
|Saskatchewan              |      |      |      | 3.8  |      |     
|Alberta                   |      |      |      | 5.2  |      |     
|British Columbia          |      |      |      | 3.7  |      |     
|Canada                    |      |      |      | 3.1  |      |     
|                         
|Source: Statistics Canada

In nominal terms, Saskatchewans
economic performance was even stronger, averaging 7.3 per cent growth from 2003 to 2006.

The number of jobs in this province
has grown considerably and, after many years of population loss, Saskatchewans
population increased in 2007.

---

|22 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

Saskatchewans unemployment rate
is at its lowest level in over 25 years while labour force participation is at an all-time
high. Among provinces, Saskatchewan had the second lowest unemployment rate in 2007.

Most of the other 2007 economic
indicators were similarly impressive. Saskatchewan posted the highest growth in retail
sales, value of building permits, housing starts and international exports.

INTERNATIONAL ECONOMIC
CONDITIONS AND OUTLOOK

Saskatchewan exports roughly 70 per
cent of what it produces. Therefore, what happens in the rest of the world is an important
factor in the provinces economic performance.

The U.S. alone consumes roughly 66
per cent of Saskatchewan international goods exports, while roughly 15 per cent can be
attributed to Japan, China and other Asian nations.

Overall, U.S. real GDP grew by 2.2
per cent in 2007. U.S. growth, however, increased at an annual rate of just 0.6 per cent
in the fourth quarter of 2007, according to preliminary estimates released by the U.S.
Bureau of Economic Analysis. This rate was well below the 4.9 per cent annual rate set the
prior quarter. The weak housing market played a major role in this slowdown.

For 2008, U.S. real GDP is projected
to expand by just 1.9 per cent as the drag stemming from declines in residential
investment persists and consumer spending slows. Recent actions taken by the Federal
Reserve and some new (albeit temporary) tax relief for individuals and corporations are
anticipated to help keep the economy from slowing further.

2007 ECONOMIC INDICATORS

|                               | Per Cent Change | Ranking in Canada
|------------------------------ | --------------- | -----------------
|Value of Building Permits      | 42.3            | Highest          
|Housing Starts (# of units)    | 61.7            | Highest          
|Value of Retail Sales          | 12.9            | Highest          
|International Exports          | 21.6            | Highest          
|Wholesale Trade                | 14.2            | 2nd Highest      
|New Vehicle Sales (# of units) | 14.1            | 2nd Highest      
|Employment Growth              | 2.1             | 4th Highest      
|Manufacturing Shipments        | 1.8             | 5th Highest      
|                              
|Source: Statistics Canada     

---

|Budget
2008-09/Budget Summary | 23
|----------------------------- | --

---

Despite the slowdown in the U.S., the
world economy is projected to expand by about 4.6 per cent in 2008. Emerging market and
developing economies, most notably Chinas economy (which is expected to grow by
about 10.0 per cent), are projected to lead the way. For Japan, one of the top three
consumers of Saskatchewans international goods exports, growth of 1.5 per cent is
expected this year, down from the 1.9 per cent pace projected for 2007.

CANADIAN ECONOMIC
CONDITIONS AND OUTLOOK

The Canadian economy eased in the
fourth quarter of last year, growing at an annualized rate of 0.8 per cent.

The high Canadian dollar and extended
holiday-related shutdowns at several manufacturing facilities contributed to a large
decline in exports, while import growth remained strong.

As a result, net exports were again a
major drag on overall growth. However, consumer spending grew at an annualized pace of 7.4
per cent and business investment remained strong. Overall, real GDP growth was 2.7 per
cent in 2007.

Final domestic demand is again
anticipated to be the key driver of economic growth in 2008, supported by high commodity
prices and growth in incomes.

Yet a further slowing of the U.S.
economy, tighter credit conditions and high Canadian dollar are expected to result in
slower growth in 2008. Overall, 2.4 per cent real GDP growth is expected.

As with overall economic growth,
inflation in 2008 is projected to ease a bit. This is partly due to continued pressures
for retailers to reduce prices, reflecting a Canadian dollar on par with the U.S. dollar,
and the one-percentage-point GST reduction. These effects will be partly offset by the
impact higher oil prices will have at the pump.

The Canadian dollar has recently been
trading around 100 US cents, and is expected to remain in this range throughout 2008.

CANADIAN ECONOMIC ASSUMPTIONS

|                                     | 2007Actual | 2008   | 2009  | 2010  | 2011  | 2012 
|------------------------------------ | ---------- | ------ | ----- | ----- | ----- | -----
|Real GDP Growth (%)                  | 2.7        | 2.4    | 2.4   | 2.5   | 2.6   | 2.6  
|CPI Growth (%)                       | 2.1        | 1.7    | 2.1   | 2.0   | 2.0   | 2.0  
|Interest Rates (%)                   |            |        |       |       |       |      
|Short-term                           | 4.15       | 4.33   | 4.87  | 5.00  | 5.00  | 5.00 
|Long-term 1                          | 4.30       | 4.38   | 5.17  | 5.33  | 5.36  | 5.42 
|Canadian Dollar (US cents)           | 93.80      | 100.00 | 97.80 | 96.70 | 95.70 | 95.20
|                                    
|1  10-Year Government of Canada Bond
|Source:  Global Insight             

---

|24 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

COMMODITY PRICE OUTLOOK

NON-RENEWABLE RESOURCE PRICE
ASSUMPTIONS

|                     | 2006Actual | 2007   | 2008   | 2009   | 2010   | 2011   | 2012  
|-------------------- | ---------- | ------ | ------ | ------ | ------ | ------ | ------
|WTI Oil (US$/barrel) | 66.25      | 72.31  | 85.00  | 80.00  | 70.00  | 65.00  | 65.72 
|Natural Gas (C$/GJ)  | 6.33       | 6.00   | 6.25   | 6.90   | 7.00   | 7.08   | 7.16  
|Potash (C$/tonne)    | 269.40     | 284.40 | 331.64 | 346.31 | 355.02 | 361.93 | 367.51
|                    

The price of West Texas Intermediate
(WTI) oil is expected to average roughly US$85.00 per barrel in 2008. While this price
represents a 17.5 per cent increase from the average price in 2007 of US$72.31 per barrel,
it is below current trading levels.

The impact of a slowdown in the U.S.
economy on global growth and thus demand for oil is the main reason for why oil prices are
expected to average below US$90.00 in the current year. As for the downward trend in the
price going forward, more non-OPEC supplies hitting the market and added OPEC productive
capacity are the main reasons.

In terms of Saskatchewan oil
production in 2008 and 2009, current levels are expected to be maintained as oil prices
and drilling for new wells, while easing a bit in 2009, remain relatively high.

The price of natural gas averaged
$6.00 per gigajoule (GJ) in 2007 and is projected to rise to $6.25 per GJ in 2008. Between
2009 and 2012, the price per GJ is anticipated to average $7.04.

With respect to potash, market prices
in both the domestic and offshore markets increased significantly in 2007 due to increased
demand. The potash price is expected to remain strong at $331.64 per tonne in 2008 and
continue to increase over the remainder of the forecast period.

Currently, the wheat market is being
driven primarily by supply concerns and solid global demand. Historically low stockpiles,
adverse weather conditions in major producing countries and export restrictions by some
countries have all played a role in the recent rise in wheat prices. Wheat is projected to
average $300.00 per tonne in 2008 and $291.76 per tonne in 2009. The outlook for 2010
through to 2012 is for slightly lower prices.

---

|Budget
2008-09/Budget Summary | 25
|----------------------------- | --

---

MAJOR CROP AND LIVESTOCK PRICE
ASSUMPTIONS 1

|                                                  | 2006Actual | 2007   | 2008   | 2009   | 2010   | 2011   | 2012  
|------------------------------------------------- | ---------- | ------ | ------ | ------ | ------ | ------ | ------
|Wheat (C$/tonne)                                  | 150.20     | 222.38 | 300.00 | 291.76 | 283.52 | 275.29 | 267.05
|Canola (C$/tonne)                                 | 323.57     | 388.00 | 405.00 | 393.59 | 382.18 | 370.77 | 359.35
|Barley (C$/tonne)                                 | 125.12     | 169.39 | 161.87 | 154.35 | 146.83 | 139.30 | 131.78
|Cattle (C$/cwt)                                   | 85.83      | 80.32  | 77.34  | 84.85  | 88.06  | 89.94  | 90.11 
|Hogs (C$/ckg)                                     | 124.43     | 124.43 | 122.48 | 123.89 | 130.88 | 134.70 | 136.94
|                                                 
|1 Crop price assumptions are on a crop year basis
|Source:  Ministry of Agriculture                 

Canola prices are expected to average
$405.00 per tonne this year due primarily to robust demand from both the food and biofuel
industries. Over the remainder of the forecast period, the price trends downward as global
production capacity is increased. As well, barley is projected to average $161.87 per
tonne in 2008 and then $154.35 per tonne in 2009.

SASKATCHEWANS
ECONOMIC OUTLOOK

Population and employment growth, as
well as high commodity prices, are anticipated to sustain the provinces economic
growth in 2008, despite a slowdown in the U.S., Saskatchewans most important
international export destination. Real GDP is forecast to grow by 2.9 per cent in 2008.
Nominal GDP is anticipated to increase by 9.8 per cent.

For 2009 through to 2012, real GDP
growth is expected to average 2.4 per cent. Nominal growth is projected to average 4.2 per
cent.

Increases in employment, wage gains
similar to 2007, and high commodity prices should provide for solid income growth.

SASKATCHEWAN FORECAST SUMMARY

|                           | 2007 | 2008 | 2009 | 2010 | 2011 | 2012
|-------------------------- | ---- | ---- | ---- | ---- | ---- | ----
|Real GDP Growth (%)        |      | 3    | .1   | 2    | .9   | 2   
|Nominal GDP Growth (%)     |      | 11   | .2   | 9    | .8   | 4   
|CPI Growth (%)             |      | 2    | .9*  | 2    | .3   | 1   
|Employment Growth (000s)   |      | 10   | .3*  | 6    | .2   | 4   
|Unemployment Rate (%)      |      | 4    | .2*  | 4    | .1   | 4   
|Personal Income Growth (%) |      | 8    | .3   | 8    | .2   | 3   
|Retail Sales Growth (%)    |      | 12   | .9*  | 7    | .2   | 4   
|                          
|*  Actual                 

---

|26 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

Net farm income is anticipated to
increase to $1.4 billion in 2008, up about $1.0 billion from last year, primarily due to
higher grain prices. Personal income overall is projected to increase by 8.2 per cent in
2008.

Although livestock prices are
expected to be lower in 2008, higher grain prices, combined with an assumed average crop
(in terms of both quantity and quality) are expected to boost realized net farm income.

FARM INCOME

|(Millions of Dollars)                    | 2006 | 2002-06Average | 2007 | 2008   
|---------------------------------------- | ---- | -------------- | ---- | -------
|Total Cash Receipts                      | $    | 6,629.2        | $    | 6,213.1
|Crop Receipts                            |      | 3,647.5        |      | 3,321.7
|Livestock Receipts                       |      | 1,714.5        |      | 1,614.6
|Program Payments                         |      | 1,267.2        |      | 1,276.8
|Net Operating Expenses                   |      | 5,374.5        |      | 5,089.4
|Net Cash Income                          |      | 1,254.7        |      | 1,123.7
|Realized Net Income                      |      | 361.8          |      | 223.1  
|                                        
|Source: Agriculture and Agri-Food Canada

All of this bodes well for consumer
spending, as was the case last year when the value of retail sales jumped 12.9 per cent.

In fact, final domestic demand is
projected to be the key driver of overall growth through to 2012.

Private sector forecasters see the
Saskatchewan economy growing by 3.4 per cent in 2008 and 2.7 per cent in 2009.

Private sector forecasters are
similarly optimistic regarding Saskatchewans employment outlook.

---

|Budget
2008-09/Budget Summary | 27
|----------------------------- | --

---

PRIVATE SECTOR REAL GDP GROWTH
FORECASTS FOR SASKATCHEWAN
(Per Cent)

|                     | 2007 | 2008 | 2009 | ReleaseDate
|-------------------- | ---- | ---- | ---- | -----------
|Global Insight       | 3.1  | 2.9  | 2.4  | Feb./08    
|CBOC                 | 3.9  | 3.6  | 2.6  | Feb./08    
|C4SE                 | 3.8  | 2.8  | 2.5  | Jan./08    
|TD Bank              | 3.9  | 3.4  | 2.8  | Jan./08    
|Royal Bank of Canada | 4.6  | 3.6  | 3.2  | Feb./08    
|Bank of Montréal     | 4.9  | 3.0  | 2.5  | Winter/08  
|CIBC                 | 5.0  | 4.5  | --   | Oct./07    
|Scotia Bank          | 3.8  | 3.0  | 2.8  | Feb./08    
|                    
|Average              | 4.1  | 3.4  | 2.7  |            
|                    

In comparison to other provinces,
private sector forecasters rank Saskatchewan at the top in terms of economic growth in
2008.

CONCLUSION

Saskatchewan real GDP is anticipated
to increase by 2.9 per cent in 2008 and 2.3 per cent in 2009, and average 2.4 per cent
thereafter.

The main downside risks to the
outlook remain the potential for the quantity and quality of crop to turn out worse than
expected. Commodity prices are also important, given Saskatchewans resource-based
economy. A general weakening of commodity prices could potentially hurt economic growth
should this translate into reduced incomes, production and/or investment.

The U.S. slowdown remains a downside
risk as well. For now, the more dominant belief appears to be that the U.S. economy will
still manage to record positive growth for the year. Given that the U.S. is
Saskatchewans primary international export destination, a more pronounced slowdown
there could impact on provincial exports.

---

|28 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GENERAL REVENUE FUND FINANCIAL
OUTLOOK

---

INTRODUCTION

The 2008-09 GRF Budget represents
the first year under The Growth and Financial Security Act. The Act requires a four-year
financial plan in which total expense must balance with or be less than total revenue in
each year.

2008-09 GRF REVENUE

Total GRF revenue is estimated to be
$9.37 billion in 2008-09, a decrease of $28.7 million, or 0.3 per cent, from the current
2007-08 forecast. The decline is primarily due to lower federal transfers, corporation
income tax, and revenue from oil and natural gas production. These declines are partially
offset by a higher Crown Investments Corporation of Saskatchewan (CIC) dividend transfer,
higher consumption and capital tax revenue, and increased potash and other resource
royalties.

Own-source Revenue

Own-source revenue is forecast to be
$7.98 billion in 2008-09, about 85 per cent of total revenue.

Tax Revenue

Tax revenue is forecast to be $4.68
billion in 2008-09, an increase of $35.5 million from the 2007-08 forecast.

| | Sales
Tax revenue is forecast to increase $43.3 million in 2008-09. The main factor for the
increase is an expected      5.9 per cent increase in the PST component, in line with
expected growth in the taxable consumption base. This is partially      offset by the
full-year impact of eliminating the PST on used vehicles that have previously had tax
paid in Saskatchewan.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Corporation
Capital Tax (CCT) revenue is forecast to increase $26.8 million in 2008-09. Strong growth
in the value      of resource sales is projected to result in higher Resource Surcharge
revenue despite rate reductions that occur in 2008. This      increase is partially
offset by lower general capital tax revenue as the result of the elimination of the
general CCT, except for      Crown corporations and financial institutions, on paid-up
capital.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 29
|----------------------------- | --

---

| | Corporation
Income Tax (CIT) revenue is forecast to decrease $55.4 million in 2008-09. The forecast
incorporates a 5.8 per cent increase in the corporate taxable income base for 2008-09.
This growth results in an increase in cash payments for the current year, but a large
decrease in prior-year reconciliation payments more than offsets the higher cash
payments.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | All
other taxation revenue, including Fuel, Tobacco, Individual Income Tax and Other Taxes,
is a combined $20.8 million higher in 2008-09.
|- | ------------------------------------------------------------------------------------------------------------------------------------------

Non-renewable Resource
Revenue

Non-renewable resource revenue is
forecast to be $1.91 billion in 2008-09, a reduction of $156.6 million from 2007-08. The
decrease is a result of a large fall in revenue generated from the sale of Crown petroleum
and natural gas rights and lower oil and gas royalties. Increased royalties from potash
and other natural resources offset some of the declines.

| | Oil
revenue for 2008-09 is forecast to be $1.05 billion, a decline of $98.1 million from
2007-08 despite a higher forecast for the value of oil production due to price and
production increases. This decline is largely the result of an increase in the percentage
of oil production receiving the lower fourth-tier royalty/tax rate. In 2008-09, 42 per
cent of production is forecast to receive the lower rate, up from 36 per cent in 2007-08.
The price forecast for West Texas Intermediate (WTI) oil is US$82.36 per barrel in
2008-09, up from US$80.41 in 2007-08.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Crown
land sales are forecast to generate $192.5 million in 2008-09, down $226.4 million from
the record amount of $418.9 million in 2007-08 as prices paid for Crown land return to
more moderate levels.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Potash
revenue in 2008-09 is forecast to be $352.6 million, an increase of $90.7 million from
the current 2007-08 forecast. The current forecast includes a 16.6 per cent increase in
the average price in 2008 and a further 4.4 per cent increase in 2009.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Natural
gas revenue in 2008-09 is forecast to be virtually unchanged from the current 2007-08
forecast. The outlook includes a higher price forecast offset by lower production and a
decrease in average royalty/tax rates.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | All
other non-renewable resources, including coal and uranium, are forecast to generate
$189.2 million in 2008-09, an increase of $76.0 million from the current 2007-08
forecast.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|30 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

Transfers from Crown
Entities

Transfers from Crown Entities are
forecast to be $968.4 million in 2008-09, an increase of $339.8 million from 2007-08,
largely as the result of the CIC dividend transfer.

CIC will make a regular dividend
payment of $185.0 million in 2008-09 and will also contribute a special dividend of $365.0
million. This special dividend, funded from proceeds related to the sale of NewGrade, is
for government debt retirement, municipal road and highway infrastructure, and green
initiatives.

The net income transfer from SLGA is
also expected to increase in 2008-09, but the transfer from the Saskatchewan Gaming
Corporation (SGC) will fall. On April 1, 2008, SGC will become a CIC Crown corporation.
The GRF will now receive only 50 per cent of SGC net income, representing the amount
required by the government for obligations under the current gaming agreements.

Other Own-Source Revenue

Other own-source revenue is expected
to be $426.7 million in 2008-09, a $3.9 million decrease from 2007-08. The two largest
components of this category, motor vehicle fees and interest earnings, show small
increases, but these gains are more than offset by lower miscellaneous and casual revenue.

Transfers from the
Government of Canada

Transfers from the Government of
Canada are estimated to be $1.39 billion in 2008-09, a reduction of $243.5 million from
2007-08. The decrease is primarily the result of a $226.1 million reduction in
Equalization as no entitlement is forecast for 2008-09.

Canada Health Transfer
(CHT) and Canada Social Transfer (CST)

Federal transfers under the CHT and
CST are estimated to be $1.15 billion in 2008-09. The $55.4 million increase over 2007-08
is entirely due to a higher CHT transfer, reflecting growth in the national allocation. As
a result of changes to the CST program introduced in 2007-08, Saskatchewans CST
transfer is unchanged in 2008-09.

Equalization

Saskatchewan received a $226.1
million Equalization payment in 2007-08 but will not receive Equalization in 2008-09.

Other Transfers from the
Government of Canada

Other federal transfers are estimated
to be $239.6 million in 2008-09, a decrease of $72.8 million from the current 2007-08
forecast. The decrease is largely due to the receipt of $104.0 million in funding in
2007-08 from four federal trusts and a child care payment.

The 2008-09 forecast includes federal
contributions from all existing cost-sharing agreements, as well as new funding that is
expected to begin in 2008-09 under the federal Building Canada Plan. The current forecast
does not include the majority of new federal funding for Saskatchewan announced in the
federal 2008 Budget. Updates to the federal transfers forecast will be provided in 2008-09
after federal legislation authorizing payments to the provinces is finalized.

---

|Budget
2008-09/Budget Summary | 31
|----------------------------- | --

---

Medium-Term Revenue
Outlook

Total GRF revenue is forecast to grow
from $9.37 billion in 2008-09 to $9.54 billion by 2011-12.

Over the current four-year forecast
period, falling oil and natural gas revenue and lower revenue from Crown land sales limit
overall GRF revenue growth. Strong tax revenue growth between 2008-09 and 2011-12 is
dampened by lower resource revenue, leaving own-source revenue growth primarily dependent
on Crown transfers and other own-source items. Over recent years, these revenue categories
have experienced much lower rates of expansion than tax and resource revenue.

As a result, total revenue is
forecast to decrease 0.9 per cent in 2009-10 and then increase by 1.0 per cent and 1.8 per
cent in 2010-11 and 2011-12, respectively.

Taxation revenue, which grew at an
average annual rate of 9.0 per cent over the previous four-year period, is projected to
increase at an annual rate of 4.4 per cent over the current four-year period 
outpacing average GDP growth of 3.9 per cent. Specifically, corporate and personal income
tax revenues are forecast to increase at average annual rates of 5.1 per cent and 6.0 per
cent, respectively. Sales Tax, which is comprised of the PST and Liquor Consumption Tax,
is forecast to average 5.3 per cent growth per year.

By 2011-12, total taxation revenue is
forecast to be $5.3 billion, up nearly $700 million over the forecast period.

Non-renewable resource revenue, which grew
at an average annual rate of 11.9 per cent from 2004-05 to 2007-08, declines at an average
annual rate of 4.2 per cent over the current four-year forecast period. This decline
reduces total GRF revenue growth by 0.8 per cent per year, or 2.4 per cent in total by the
end of the four-year period. Higher royalty revenue from potash and other resources is
more than offset by lower revenue forecasts for oil, natural gas and Crown land sales.

The Ministry of Energy and Resources
anticipates that oil revenue will fall between 2008-09 and 2011-12 as WTI oil prices fall
to US$65.18 per barrel and the percentage of production receiving the lower fourth-tier
royalty/tax rates continues to rise. Natural gas revenue is forecast to remain on a
downward path primarily due to lower production forecasts.

---

|32 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

FISCAL-YEAR NON-RENEWABLE RESOURCE
FORECAST ASSUMPTIONS

|            |                                     | 2008-09 | 2009-10 | 2010-11 | 2011-12
|----------- | ----------------------------------- | ------- | ------- | ------- | -------
|            | WTI Oil Price (US$/bbl)             | 82.36   | 77.50   | 68.75   | 65.18  
|            | Exchange Rate (US cents)            | 99.45   | 97.53   | 96.45   | 95.58  
|Oil         | Production (million barrels)        | 156.6   | 159.1   | 157.3   | 151.8  
|            | Fourth-tier Production (% of total) | 42      | 45      | 47      | 48     
|            | Crown Land Sales ($ millions)       | 192.5   | 144.4   | 108.3   | 101.0  
|           
|            | Fieldgate Price (C$/GJ)             | 6.55    | 6.77    | 7.02    | 7.10   
|Natural Gas | Production (billion cubic feet)     | 240.4   | 227.0   | 214.1   | 202.3  
|            | Fourth-tier Production (% of total) | 56      | 57      | 57      | 57     
|           
|Potash      | Price (C$/tonne)                    | 335.28  | 348.48  | 356.73  | 363.30 
|            | Production (million tonnes)         | 11.17   | 10.96   | 11.16   | 11.34  
|           

Transfers from Crown Entities decline
over the forecast period as the result of a large CIC dividend in 2008-09. In 2009-10, the
CIC dividend falls to $195.0 million, reflecting a regular dividend target of $185.0
million and a special dividend of $10.0 million for green initiatives. Growing SGC and
SLGA net income over the forecast period leads to higher transfers from these Government
entities.

Growth in other own-source revenue
averages 1.4 per cent per year over the medium term.

Total transfers from the Government
of Canada increase by approximately 1.9 per cent annually over the medium term.
Saskatchewans CHT cash entitlement grows by 3.5 per cent per year, on average. The
CST entitlement remains unchanged until 2011-12.

Over the medium term, other federal
transfers average approximately $230 million per year. The forecast includes all existing
federal-provincial cost-sharing agreements that are reasonably expected to continue. For
new cost-shared federal-provincial infrastructure programs, the medium-term forecast makes
use of federal notional funding allocations in 2009-10 and beyond. These forecasts will be
adjusted in the coming months and years as contribution agreements are signed and projects
are undertaken.

---

|Budget
2008-09/Budget Summary | 33
|----------------------------- | --

---

Improvements Since
Mid-Year Outlook

The current medium-term GRF revenue
forecast is significantly higher than the mid-year outlook. The 2008-09 forecast of $9.37
billion is $1.1 billion higher than projected at mid-year. In total, over the four years
covered by the current forecast, GRF revenue is over $3.4 billion higher. The majority of
this improvement comes from higher non-renewable resource and taxation revenue.

The forecast for non-renewable
resource revenue, prepared by the Ministry of Energy and Resources, is $1.3 billion higher
over the four-year period than at mid-year, primarily due to higher forecasts for oil and
potash prices. At the time of the Mid-Year Report, oil prices had only recently surpassed
US$80 per barrel.

The current medium-term forecast
includes oil prices that are higher than assumed at mid-year and consistent with private
sector forecasts for 2008 and 2009. Beyond 2009, oil prices are anticipated to moderate.
The outlook for potash also includes a higher price forecast than at mid-year.

Tax revenue, which is largely
dependent on the value of economic activity, is forecast to be $1.1 billion higher over
the forecast period and reflects the latest provincial economic forecast. Corporate and
individual income taxes show the largest increases since mid-year, but all tax revenue
bases are higher in the current four-year forecast than at mid-year.

Nominal GDP is currently forecast to
be $56.1 billion in 2008, up from $51.9 billion at mid-year, and is projected to reach
$62.9 billion in 2011, up from $57.6 billion at mid-year. In total, upward revisions in
the latest economic forecast have resulted in an extra $21 billion in GDP over the
forecast period and contribute significantly to the large increase in tax revenue since
the mid-year outlook.

The forecast for transfers from Crown
Entities has increased by more than $500 million since mid-year. The increase reflects the
transfer of $395 million from CIC related to the sale of NewGrade in 2007. The GRF will
receive $365 million of this funding in 2008-09. Higher SLGA net income transfers and
higher regular CIC dividend payments account for the remainder of the increase.

---

|34 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

FISCAL-YEAR WTI OIL AND POTASH PRICE
FORECASTS

|             |                           | 2008-09 | 2009-10 | 2010-11 | 2011-12
|------------ | ------------------------- | ------- | ------- | ------- | -------
|WTI Oil      | 2007-08 Mid-Year Forecast | 75.50   | 67.25   | 65.18   | 65.90  
|(US$/barrel) | 2008-09 Budget            | 82.36   | 77.50   | 68.75   | 65.18  
|             | Increase                  | 6.86    | 10.25   | 3.57    | (0.72) 
|            
|Potash       | 2007-08 Mid-Year Forecast | 322.40  | 329.70  | 336.96  | 345.38 
|(C$/tonne)   | 2008-09 Budget            | 335.28  | 348.48  | 356.73  | 363.30 
|             | Increase                  | 12.88   | 18.78   | 19.78   | 17.93  
|            

Other own-source revenue increases
since mid-year total almost $300 million. The improvement primarily reflects a higher
forecast for interest earnings that is consistent with higher balances in the Growth and
Financial Security Fund over the forecast period. In addition, the current forecast
includes higher targets for other own-source miscellaneous and casual revenue, consistent
with recent results.

Finally, projected transfers from the
Government of Canada over the forecast period have increased almost $300 million since
mid-year as the result of including new funding from the federal government under new
federal-provincial cost-sharing programs for infrastructure and labour market initiatives.

2008-09 GRF Expense

Total GRF expense (operating expense
plus debt servicing costs) is estimated to be $9.11 billion in 2008-09, an increase of
$404.6 million from the current 2007-08 forecast, reflecting increased spending in
priority areas, including health, education, and infrastructure.

GRF Operating Expense

GRF operating expense is forecast to
be $8.57 billion in 2008-09, an increase of $399.6 million, or 4.9 per cent, from the
current 2007-08 forecast.

GRF operating expense in 2008-09 will
be allocated as follows:

| | Health,
$3.75 billion, or 43.7 per cent;
|- | ----------------------------------------

| | Education,
$1.19 billion, or 13.8 per cent;
|- | -------------------------------------------

---

|Budget
2008-09/Budget Summary | 35
|----------------------------- | --

---

| | Advanced
Education, Employment and Labour, $761.0 million, or 8.9 per cent;
|- | ---------------------------------------------------------------------------

| | Social
Services, $631.4 million, or 7.4 per cent;
|- | -------------------------------------------------

| | Highways
and Infrastructure, $372.1 million, or 4.3 per cent;
|- | -------------------------------------------------------------

| | Agriculture,
$302.8 million, or 3.5 per cent; and,
|- | --------------------------------------------------

| | remaining
departments and agencies, $1.57 billion, or 18.4 per cent.
|- | --------------------------------------------------------------------

Debt Servicing Costs

Debt servicing costs are estimated to be
$535.0 million in 2008-09, an increase of $5.0 million from the current 2007-08 forecast
of $530.0 million. The increase is mainly due to an expected rise in in-year borrowing
costs. This is related to the forecast decrease in the cash balance in comparison to the
March 31, 2007 amount.

---

|36 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

Medium-Term Expense
Outlook

Operating expense in 2008-09 is
forecast to be $8.57 billion, including $8.37 billion in base funding and $200
million in one-time capital funding $100 million for urgent health capital
maintenance and $100 million for 11 new major school projects and infrastructure upgrades.

For the remainder of the medium term,
operating expense growth is targeted at five per cent over the base in 2009-10, at four
per cent in 2010-11 and at three per cent in 2011-12. By the end of the four years,
operating expense is expected to reach $9.42 billion.

Annual debt servicing costs over the
current forecast period represent less than six per cent of annual GRF revenue. The
current interest-to-revenue ratio is comparable to what it was in 1985-86, and is well
below the 1993-94 peak of 18.7 per cent.

Combining operating expense and debt
servicing costs, over the medium term, GRF total expense is forecast to increase from
$9.11 billion in 2008-09 to $9.97 billion in 2011-12.

Change from Mid-Year

The current medium-term GRF total
expense forecast shows a reduced trajectory relative to the base case forecast done at
2007-08 mid-year.

It is important to note in making
this comparison that the mid-year forecast did not include any adjustments for election
campaign commitments. The current medium-term forecast does. Adjusting the 2008-09 Budget
expense line reveals considerable progress relative to the mid-year forecast, prior to
funding campaign commitments.

---

|Budget
2008-09/Budget Summary | 37
|----------------------------- | --

---

Four-year Financial Plan

In 2008-09, the GRF is balanced
without a net transfer from the Growth and Financial Security Fund (GFSF) and there is a
$250 million contribution to the Debt Retirement Fund via the GRF surplus of $250 million.

Although balanced budgets rely
increasingly on larger GFSF transfers in the medium term, there are adequate resources to
ensure compliance with The Growth and Financial Security Act.

GRF FOUR-YEAR FINANCIAL PLAN

|(Millions of Dollars)       | 2008-09 | 2009-10 | 2010-11 | 2011-12
|--------------------------- | ------- | ------- | ------- | -------
|Revenue                     |         |         | $       | 9,001.5
|Special CIC Dividend        |         |         |         | 365.0  
|                           
|Total Revenue               |         |         |         | 9,366.5
|                           
|Base Operating Expense      |         |         |         | 8,371.5
|One-time Capital            |         |         |         | 200.0  
|                           
|Operating Expense           |         |         |         | 8,571.5
|                           
|Operating Surplus           |         |         |         | 795.0  
|Debt Servicing Costs        |         |         |         | 535.0  
|                           
|Pre-transfer Surplus        |         |         |         | 260.0  
|                           
|Transfer to GFSF            |         |         |         | (130.0 
|Transfer from GFSF          |         |         |         | 120.0  
|                           
|Net Transfer from (to) GFSF |         |         |         | (10.0  
|                           
|GRF Balance                 |         |         | $       | 250.0  
|                           

---

|38 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

2007-08 GENERAL REVENUE
FUND UPDATE

---

2007-08 GRF UPDATE

The current  3rd Quarter 
2007-08 General Revenue Fund (GRF) forecast represents a pre-transfer improvement of $1.17
billion relative to the 2007-08 Budget Estimate. This forecast improvement is composed of
a $1.53 billion increase in revenue, a $382.1 million increase in operating expense and a
decrease of $30.0 million in government debt servicing costs.

The $346.7 million GRF surplus
forecast is $271.7 million higher than the $75.0 million surplus estimated in the 2007-08
Budget. This increase reflects the pre-transfer improvement of $1.17 billion being reduced
by the $856.6 million improvement in the budgeted transfer from the Fiscal Stabilization
Fund (FSF) and the removal of the budgeted $45.5 million transfer from the Saskatchewan
Infrastructure Fund (SIF).

The $1.53 billion increase in the
2007-08 revenue forecast is mainly due to increases of:

| | $538.6
million, or 13.1 per cent, in tax revenue primarily due to higher corporate and
individual income tax revenue;
|- | ---------------------------------------------------------------------------------------------------------------------

| | $548.1
million, or 36.2 per cent, in non-renewable resource revenue due entirely to higher oil
revenue as the result of higher prices and record Crown land sales;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $88.7
million, or 9.1 per cent, in all other own-source revenue categories mainly due to higher
interest earnings, SLGA net income, and other miscellaneous and casual revenue increases;
and,
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $350.5
million, or 27.4 per cent, in federal transfers due to the receipt of a $226.1 million
Equalization payment and $104.0 million in federal funding via four trust funds and a
payment for child-care initiatives.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

GRF 2007-08 FINANCIAL FORECASTS

|(Millions of Dollars)      | BudgetEstimate | 1stQuarter | Mid-Year | 3rdQuarter | ChangefromBudget
|-------------------------- | -------------- | ---------- | -------- | ---------- | ----------------
|Revenue                    |                |            | $        | 7,869.3    |                 
|Operating Expense          |                |            |          | 7,789.7    |                 
|                          
|Operating Surplus          |                |            |          | 79.6       |                 
|Debt Servicing Costs       |                |            |          | 560.0      |                 
|                          
|Pre-Transfer Balance       |                |            |          | (480.4     | )               
|FSF Transfer to/(from) GRF |                |            |          | 509.9      |                 
|SIF Transfer to/(from) GRF |                |            |          | 45.5       |                 
|                          
|GRF Budget Balance         |                |            | $        | 75.0       |                 
|                          

---

|Budget
2008-09/Budget Summary | 39
|----------------------------- | --

---

The $382.1 million increase in the
2007-08 operating expense forecast is mainly due to increases of:

| | $93.6
million, or 2.7 per cent, in Health, primarily to establish a nursing recruitment fund,
undertake an evaluation of processes focused on improving quality and achieving
efficiencies in the delivery of patient services, improve workplace safety and work
toward patient wait time guarantees;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $52.2
million, or 38.4 per cent, in Teachers Pensions and Benefits, primarily due to
actuarial information and expected utilization and rate changes;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | $44.9
million, or 5.5 per cent, in the non-pension and benefit related component of Education,
primarily for increases in the Education Property Tax Credit, child care funding, teachers salaries
and major K-12 capital projects;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $43.2
million, or 16.5 per cent, in Corrections, Public Safety and Policing, primarily due to
an increase in eligible claims under the Provincial Disaster Assistance Program, an
increase in inmate bed space capacity, additional costs to sustain the SaskTel FleetNet
System pending wind-down and costs related to flooding at Fishing and Waldsea lakes;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $23.8
million, or 69.2 per cent, in Energy and Resources, primarily due to funds received from
EnCana pursuant to decommissioning and reclaiming the Lorado uranium mine site;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $21.2
million, or 18.1 per cent, in Tourism, Parks, Culture and Sport, primarily due to an
increase in the Film Employment Tax Credit program, and funding for the Saskatchewan Arts
Board, Western Development Museum and Community Initiatives Fund;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $18.4
million, or 5.3 per cent, in Highways and Infrastructure, primarily related to spring
flooding and public      safety repairs;
|- | ------------------------------------------------------------------------------------------------------------------------------------

| | $18.1
million, or 60.5 per cent, in the Public Service Commission, primarily for one-time
funding to settle claims for prior-years pension contributions and earnings of
non-permanent employees, and the cost of a single-window human resources administration
and payroll delivery system;
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $17.9
million, or 30.9 per cent, in First Nations and Métis Relations, primarily due to
higher-than-expected payments to the First Nations Trust and Community Development
Corporations and one-time funding for the Primrose Lake economic development trust fund;
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $14.5
million, or 4.8 per cent, in Agriculture, for loan loss provisions in the new short-term
cattle and hog loan      programs; and,
|- | --------------------------------------------------------------------------------------------------------------------------------------

| | $11.5
million, or 1.7 per cent, in Advanced Education, Employment and Labour, primarily due to
training facilities capital transfers under the Labour Market Partnership Agreement and
funding for capital to support health professional training and InterVac.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The $30.0 million decrease in the
government debt servicing forecast is largely due to reduced in-year borrowing
requirements.

The FSF 2007-08 balance is forecast
to be $1.23 billion. The SIF 2007-08 balance is forecast to be $105.1 million.

In accordance with The Growth and
Financial Security Act, the balances of the FSF and the SIF will be transferred to the
Growth and Financial Security Fund.

---

|40 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

2008-09 REVENUE
INITIATIVES

---

INTRODUCTION

The 2008-09 Budget includes a number
of measures to reduce provincial taxes for Saskatchewan taxpayers and fulfill the
commitments made by the Government in its Throne Speech on December 10, 2007.

This paper provides additional
information on the taxation initiatives announced in the Budget. As this paper is only a
summary of these initiatives, the reader is advised to contact the appropriate ministry or
consult the amending legislation for more detailed information.

PROVINCIAL SALES TAX
(PST) EXEMPTION FOR USED LIGHT VEHICLES

Effective November 8, 2007, the PST
no longer applies to the purchase of eligible light vehicles on which the tax had been
previously paid in full.

To be eligible for the tax exemption,
PST must have been previously paid in full on the eligible vehicle. Where a vehicle is not
previously tax-paid, the value of any eligible trade-in will continue to be deducted
before the PST is applied and the vehicle will then be deemed to be fully tax-paid.

Eligible light vehicles include all
cars, sport utility vehicles, light vans rated one-ton or less and light trucks rated
one-ton or less. Some previously-owned vehicles may not be eligible for the tax exemption:

| | vehicles
purchased from outside the province (other than settlers effect - i.e. vehicles
belonging to people who      move to Saskatchewan);
|- | ---------------------------------------------------------------------------------------------------------------------------------------------

| | vehicles
imported by vehicle dealers for sale in Saskatchewan;
|- | --------------------------------------------------------------

| | vehicles
purchased from a status Indian or the federal government; and,
|- | -----------------------------------------------------------------------

| | vehicles
received as a gift from a non-resident donor.
|- | ------------------------------------------------------

People who paid PST on an eligible
used light vehicle acquired on or after November 8, 2007 can apply to have the tax
refunded by calling 1-800-667-6102 to request a refund application or by visiting the
Ministry of Finance website.

POST-SECONDARY GRADUATE
RETENTION PROGRAM 

The Government is introducing a
refundable income tax credit, entitled the Graduate Retention Program (GRP), to rebate up
to $20,000 of tuition fees paid by eligible graduates of Saskatchewan post-secondary
institutions. Beginning January 1, 2008, this initiative replaces the previous Graduate
Tax Exemption.Eligible graduates will include individuals who successfully complete an
approved program at a Saskatchewan post-secondary institution. Eligible programs must be
at least six months in duration and must:

| | result
in a certificate, diploma or undergraduate degree; or,
|- | -------------------------------------------------------------

| | provide
certification to journeypersons.
|- | ----------------------------------------

Eligibility will also be extended to
selected programs at post-secondary institutions outside Saskatchewan. These programs will
be determined by the Ministry of Advanced Education, Employment and Labour.

---

|Budget
2008-09/Budget Summary | 41
|----------------------------- | --

---

The tuition rebate will be based on
actual tuition amounts paid by an individual, determined by using the T2202A tuition
receipts that are issued by the post-secondary institutions. The maximum tuition rebate
for each program of study that was completed is as follows:

| | graduates
of certificate programs, including journeypersons, will be eligible for tuition rebates
up to $3,000;
|- | ---------------------------------------------------------------------------------------------------------------

| | graduates
of diploma programs will be eligible for tuition rebates up to $6,400;
|- | --------------------------------------------------------------------------------

| | graduates
of three-year undergraduate degree programs will be eligible for tuition rebates up to
$15,000; and,
|- | --------------------------------------------------------------------------------------------------------------

| | graduates
of four-year undergraduate degree programs will be eligible for tuition rebates up to
$20,000.
|- | --------------------------------------------------------------------------------------------------------

To fully qualify for tuition rebate
entitlements, graduates must remain in Saskatchewan for the seven years after graduation.
Eligible graduates who opt to continue their post-secondary education in another
certificate, diploma or undergraduate program will be eligible for additional tuition
rebates. The total amount of tuition rebates any graduate can receive over the course of a
lifetime is $20,000.

A graduates tuition rebate
entitlement will be paid out through the provincial income tax system as a refundable
income tax credit over a seven-year period, with 10 per cent of the entitlement paid out
in each of the first four years after graduation and 20 per cent paid out in each of the
next three years.

Program application and eligibility
verification will be conducted by the Ministry of Advanced Education, Employment and
Labour. The Ministry will accept applications for the new program from students and
institutions, confirm that the individual graduated from an eligible program at an
eligible institution, and issue a certificate confirming eligibility and the course of
study completed.

Graduates will be required to attach
this eligibility certificate and all applicable tuition receipts to their Saskatchewan
income tax return. The Canada Revenue Agency (CRA) will then use the tuition receipts and
eligibility certificate to establish the graduates total rebate entitlement. Based
on this entitlement amount, the CRA will calculate the individuals rebate payment
for each taxation year during the seven-year entitlement period. Tax refunds will be made
each year provided that the graduate files a Saskatchewan income tax return for each of
those years.

All 2006 and 2007 graduates who were
eligible under the previous Graduate Tax Exemption program will continue to benefit under
that program for the 2007 taxation year. In addition, 2006 and 2007 graduates of programs
that meet the GRP eligibility criteria will also receive benefits under the new program.
These benefits will be based on a portion of tuition costs and the particular program of
study that was completed. The maximum amounts of tuition that can be claimed by eligible
2006 and 2007 graduates will be as follows:

| | for
certificate programs, including journeypersons, up to $3,000;
|- | -----------------------------------------------------------------

| | for
diploma programs, up to $3,200; and,
|- | ----------------------------------------

| | for
undergraduate degree programs, up to $5,000.
|- | ------------------------------------------------

Tuition rebate benefits for 2008 and
2009 graduates will also be based on their course of study and a portion of their tuition
costs. The maximum amounts of tuition that can be claimed by eligible 2008 and 2009
graduates will be as follows:

| | for
certificate programs, including journeypersons, up to $3,000;
|- | -----------------------------------------------------------------

| | for
diploma programs, up to $6,400; and,
|- | ----------------------------------------

| | for
undergraduate degree programs, up to $10,000 for 2008 graduates and up to $15,000 for
2009 graduates.
|- | ---------------------------------------------------------------------------------------------------------

---

|42 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

The Graduate Retention Program will
be fully implemented, and will provide full benefits, in 2010.

For further information on this
initiative, please contact the Ministry of Advanced Education, Employment and Labour at
1-800-597-8278.

ACTIVE SASKATCHEWAN
FAMILIES BENEFIT

The Government is introducing a
refundable income tax credit to annually rebate up to $150 per child for cultural,
recreational and sports activity fees for children aged 6 to 14. This initiative will take
effect beginning in 2009.

The Ministry of Tourism, Parks,
Culture and Sport is consulting with organizations involved in culture, sport and
recreation in order to develop guidelines for defining eligible activities for the
purposes of the Active Families Benefit. It is expected that these guidelines and a
listing of the eligible activities will be completed by the fall of 2008.

Once determined, the approved listing
of qualifying cultural, recreational and sport activities will be identified on a new
provincial application form. This form will have to be completed and attached to the
Saskatchewan income tax return beginning with the 2009 taxation year. Taxpayers will not
be required to submit receipts with the income tax return but would be expected to retain
them for verification purposes.

For further information on this
initiative, please contact the Ministry of Tourism, Parks, Culture and Sport at
306-787-7757.

DISABILITY-RELATED TAX
CREDITS

Saskatchewans personal income
tax system currently offers tax reductions for individuals with severe and prolonged
disabilities and for individuals who are supporting elderly or disabled relatives. For the
2008 taxation year, the following tax credits are being significantly enhanced:

| | The
$4,095 Caregiver Tax Credit amount that can be claimed by an individual who provides
in-home care for an adult infirm dependent relative, or a parent or grandparent aged 65
or older, is being doubled to $8,190. The tax credit amount is reduced by the amount that
the dependants income exceeds $13,987.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
$4,095 Infirm Dependant Tax Credit amount that can be claimed by an individual who
supports an adult infirm dependent relative is also being doubled to $8,190. The
dependant may live in a separate residence. The tax credit amount is reduced by the
amount that the dependants income exceeds $5,811.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Disability Tax Credit amount that can be claimed by an individual with a severe and
prolonged impairment in physical or mental functions is being increased from $7,021 to
$8,190. This amount is transferable to a supporting relative.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
$4,095 Supplement to the Disability Tax Credit amount that can be claimed by eligible
individuals who are under the age of 18 is being doubled to $8,190. The supplement amount
is reduced if any child care or attendant care expenses in excess of $2,399 were claimed
by a parent in respect of the eligible child. This amount may also be transferred to a
supporting relative.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For further information on these
enhancements to the disability-related tax credit amounts, please contact the Ministry of
Finance at 1-800-667-6102.

---

|Budget
2008-09/Budget Summary | 43
|----------------------------- | --

---

MINERAL EXPLORATION TAX
CREDIT

The Saskatchewan Mineral Exploration
Tax Credit was originally introduced for the 2000 taxation year, as part of an effort by
the federal government and several provinces to encourage investors to purchase
flow-through shares of Canadian mineral exploration companies. The federal and
Saskatchewan tax credits were allowed to expire as of December 31, 2005. The federal
government subsequently reintroduced its tax credit in 2006, and has recently extended it
to March 31, 2009.

The Government is reinstating the 10
per cent Saskatchewan Mineral Exploration Tax Credit for flow-through share agreements
entered into after March 31, 2008. The Saskatchewan tax credit will once again parallel
the federal credit for investments made by Saskatchewan taxpayers in support of
Saskatchewan mineral exploration activity.

For further information on this
initiative, please contact the Ministry of Energy and Resources at 306-787-2188.

OTHER MEASURES

Corporation Capital Tax

The general Corporation Capital Tax
is being eliminated as of July 1, 2008. The Corporation Capital Tax continues to apply to
financial institutions. For financial institutions with aggregate taxable paid-up capital,
including all associated corporations, in excess of $1.0 billion, the tax rate is 3.25 per
cent. For financial institutions below this threshold, the tax rate is 0.7 per cent.

The Government is increasing the
threshold for small financial institutions to $1.5 billion to encourage them to continue
to expand and provide quality financial services within the province. This increase will
apply for corporation fiscal years ending on or after October 31, 2008.

Research and Development
Tax Credit

The Government has committed to
improving its support of research and development (R&D) in Saskatchewan. Saskatchewan
currently offers a Corporation Income Tax credit equal to 15 per cent of qualifying
R&D expenditures that are incurred in Saskatchewan. Qualifying expenditures parallel
the federal tax credit.

In October 2007, the federal
government initiated public consultations and an examination of the federal tax incentives
for R&D. In its 2008 Budget, the federal government announced changes to its
incentives to further encourage private sector R&D activity in Canada.

The Government is committed to the
enhancement of its support for research and development in the province. Saskatchewan will
therefore examine ways to improve the effectiveness of the provincial incentive, including
its interaction with the federal R&D incentives.

Entrepreneur Exemption

The Government had proposed to create
a new income tax exemption in respect of self-employment income in order to assist young
entrepreneurs to start new businesses in Saskatchewan. However, the federal government has
refused to administer such a measure as part of the provincial income tax system.

The Government continues to be
committed to encouraging growth in Saskatchewans entrepreneurial attitude,
particularly among the provinces youth. It will therefore be asking Enterprise
Saskatchewan to examine other options to assist entrepreneurs in Saskatchewan.

---

|44 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

Business Tax Reductions

The Government is committed to
maintaining the competitiveness of Saskatchewans business taxes. Effective July 1,
2008, the following business tax reductions will occur:

| | the
general Corporation Capital Tax will be eliminated for all corporations other than
provincial Crown corporations and financial institutions;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | the
Corporation Capital Tax Resource Surcharge rates will be reduced from 3.1 per cent (the
general rate) and 1.75 per cent (the special rate for fourth tier oil and gas) to 3.0 per
cent and 1.7 per cent, respectively;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | the
general Corporation Income Tax rate will be reduced from 13 per cent to 12 per cent; and,
|- | ---------------------------------------------------------------------------------------------

| | the
income threshold for the current 4.5 per cent small business Corporation Income Tax rate
will rise from $450,000 to $500,000.
|- | ---------------------------------------------------------------------------------------------------------------------------------

For further information on each of
these initiatives, please contact the Ministry of Finance at 1-800-667-6102.

---

|Budget
2008-09/Budget Summary | 45
|----------------------------- | --

---

SASKATCHEWANS TAX
EXPENDITURES

---

INTRODUCTION

Although the primary purpose of
taxation is to raise revenue, governments also attain some of their social and economic
goals by reducing the taxes paid by certain taxpayers. These reductions are commonly
called tax expenditures and include such measures as exemptions, deductions,
tax credits, preferential tax rates or deferrals. Each provides special or preferential
treatment to certain taxpayers or to certain types of activity. Taken together, they
provide assistance to a variety of individuals and businesses, including families,
farmers, senior citizens and small businesses.

While tax expenditures are usually
absorbed in the overall revenue estimates and are not presented in the same way as direct
spending programs, they reduce the amount of revenue generated by a government and they
affect a governments fiscal position in the same way as direct expenditures.

THE RATIONALE FOR TAX
EXPENDITURES

Tax expenditures can achieve a number
of objectives, such as enhancing the fairness of the tax system or promoting certain types
of economic activity. In pursuing these objectives, some tax expenditures have become
fundamental elements of the tax system.

Saskatchewans sales tax does
not apply to certain basic items such as food, residential natural gas, residential
electricity, childrens clothing and reading materials, thereby reducing the taxes
paid by families consuming these basic items. This treatment is in contrast to the federal
Goods and Services Tax (GST) and the sales taxes of provinces that have harmonized their
sales taxes with the GST, since those taxes apply to a much broader range of goods and
services purchased by families.

In recognition of the importance of
agriculture to Saskatchewan, the Provinces Fuel Tax exemption provides tax-free
treatment to farm-use diesel fuel, through a fuel-colouring program, and a partial
exemption of farm-use gasoline when purchased in bulk.

Saskatchewans personal income
tax system applies provincial marginal tax rates directly to taxable income as defined for
federal income tax purposes. As a result, deductions that contribute to the federal
determination of taxable income, such as the deduction for Registered Retirement Savings
Plan contributions, also affect Saskatchewan income tax revenue. The impacts of several of
these deductions are estimated in this paper.

In addition, Saskatchewans
personal income tax system has distinct provincial non-refundable tax credits that
recognize the personal circumstances of the taxpayer, including family-based credits,
disability credits and educational credits. This paper also provides estimates of the
revenue impacts of several of these provincial non-refundable tax credits.

To improve the distribution of
corporate taxes, Saskatchewan levies a lower income tax rate on small businesses and a
special corporate income tax rate on manufacturing and processing (M&P) profits that
can be as low as 10 per cent, depending upon the

---

|46 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

level of a corporations
business activity in Saskatchewan. Saskatchewan also provides a refundable Investment Tax
Credit (ITC) to assist M&P companies that invest in qualifying new or used M&P
assets for use in Saskatchewan.

ASSOCIATED COSTS

While tax expenditures serve
important social and economic objectives, the introduction of any tax expenditure results
in associated costs. These costs take several forms.

| | First,
there is the cost of forgone revenue. Tax expenditures result in the reduction of revenue
collected and have a significant impact on a governments financial position.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Second,
tax expenditures may add to the complexity of the tax system, leading to increased
administrative effort by both taxpayers and governments.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | Third,
tax expenditures may create distortions in consumer and other economic behaviour. For
example, the exemption for restaurant meals and snack foods provides preferential
treatment for this category of consumer expenditure.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Finally,
tax expenditures may create increased compliance costs for both businesses and consumers.
|- | --------------------------------------------------------------------------------------------------

GOVERNMENT OF CANADA TAX
EXPENDITURES

The federal government produces a
detailed presentation on tax expenditures that are part of the federal tax system. The
2007 estimates of federal tax expenditures include projections to the year 2009 as well as
historical data.

Since Saskatchewans personal
and corporate income taxes are based upon the federal definition of taxable income, many
of the federal tax expenditures have an impact on Saskatchewans revenue. Readers
interested in examining the federal governments presentation of tax expenditures are
invited to contact the Finance Canada Distribution Centre in Ottawa or visit the website
www.fin.gc.ca (and click on Publications).

2008 SASKATCHEWAN TAX
EXPENDITURES

In November 2007, eligible used light
vehicles became exempt from the Provincial Sales Tax (PST). To be eligible for the sales
tax exemption, the PST must have been previously paid in full on the vehicle.

The 2008 Budget announces
enhancements to the provincial disability-related tax credits, including the Disability
Tax Credit, the Supplement to the Disability Tax Credit, the Caregiver Tax Credit and the
Infirm Dependant Tax Credit, effective for the 2008 taxation year. Details of these
enhancements are presented elsewhere in this document.

Other tax changes in the 2008 Budget
include:

| | Effective
for eligible flow-through share agreements entered into after March 31, 2008, the Mineral
Exploration Tax Credit will be reintroduced at the previous rate of 10 per cent to
parallel the federal Mineral Exploration Tax Credit; and,
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Effective
for corporation fiscal years ending on or after October 31, 2008, the Corporation Capital
Tax (CCT) small financial institutions threshold will be increased to $1.5 billion.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 47
|----------------------------- | --

---

A number of previously announced tax
measures will also take effect in 2008:

| | Effective
for the 2008 taxation year, Saskatchewans personal income tax system, including
Saskatchewans family tax credits and income tax brackets, is indexed to the
national rate of inflation of 1.9 per cent; and,
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Effective
July 1, 2008, a number of business tax reductions will apply:
|- | -----------------------------------------------------------------------

| | ~ | the general
CCT will be eliminated for all corporations other than provincial Crown corporations and
financial institutions;
| | - | ----------------------------------------------------------------------------------------------------------------------------

| | ~ | the general
Corporation Income Tax (CIT) rate will be reduced from 13 per cent to 12 per cent;
| | - | ----------------------------------------------------------------------------------------------

| | ~ | the CCT
Resource Surcharge rates will be reduced from 3.1 per cent (the general rate) and 1.75
per cent (the special rate for fourth tier oil and gas) to 3.0 per cent and 1.7 per cent,
respectively; and,
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ~ | the income
threshold for the current 4.5 per cent small business CIT rate will rise from $450,000 to
$500,000.
| | - | --------------------------------------------------------------------------------------------------------------

The following table provides
estimates of the major tax expenditures of the Government of Saskatchewan in 2008,
calculated using tax collection data and Statistics Canada data.

---

|48 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

2008 Government of Saskatchewan 
Tax Expenditure Accounts
(Value of Tax Expenditures in Millions of Dollars)

---

|Sales Tax              |  | 
|---------------------- |  | 
|                       |  | 
|Exemptions             |  | 
|1.                     |  | 
|2.                     |  | 
|3.                     |  | 
|4.                     |  | 
|5.                     |  | 
|6.                     |  | 
|                       |  | 
|                       |  | 
|7.                     |  | 
|8.                     |  | 
|9.                     |  | 
|                       |  | 
|                       |  | 
|10.                    |  | 
|11.                    |  | 
|12.                    |  | 
|13.                    |  | 
|14.                    |  | 
|15.                    |  | 
|16.                    |  | 
|                       |  | 
|                       |  | 
|                      
|Fuel Tax              
|                      
|1.                     |  | 
|2.                     |  | 
|3.                     |  | 
|                       |  | 
|                       |  | 
|                      
|Personal Income Tax   
|                      
|Deductions from Income |  | 
|1.                     |  | 
|2.                     |  | 
|3.                     |  | 
|4.                     |  | 
|5.                     |  | 
|6.                     |  | 
|7.                     |  | 
|8.                     |  | 

---

|Budget
2008-09/Budget Summary | 49
|----------------------------- | --

---

|                                        |  | 
|--------------------------------------- |  | 
|                                        |  | 
|Saskatchewan Non-refundable Tax Credits
|1.                                      |  | 
|2.                                      |  | 
|3.                                      |  | 
|4.                                      |  | 
|5.                                      |  | 
|6.                                      |  | 
|7.                                      |  | 
|8.                                      |  | 
|9.                                      |  | 
|10.                                     |  | 
|11.                                     |  | 
|12.                                     |  | 
|13.                                     |  | 
|14.                                     |  | 
|15.                                     |  | 
|                                       
|                                       
|Other Saskatchewan Tax Measures        
|1.                                      |  | 
|2.                                      |  | 
|3.                                      |  | 
|4.                                      |  | 
|5.                                      |  | 
|                                       
|                                       
|                                       
|Corporation Income Tax                 
|                                       
|1.                                      |  | 
|2.                                      |  | 
|3.                                      |  | 
|4.                                      |  | 
|5.                                      |  | 
|                                       
|                                       
|                                       
|Corporation Capital Tax                
|                                       
|1.                                      |  | 
|2.                                      |  | 
|                                        |  | 
|                                       
|                                       
|                                       

---

|50 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

2008 INTERCITY COMPARISON
OF TAXES,UTILITIES AND HOUSING

---

A number of factors contribute to the
quality of life enjoyed by individuals and families in Saskatchewan and across Canada. For
example, access to excellent health care, education and social services is a key part of
the overall quality of life.

Other important factors that affect
quality of life are:

| | the
level of taxation;
|- | ----------------------

| | the
cost of utilities and auto insurance; and,
|- | ----------------------------------------------

| | household
costs for rent and mortgages.
|- | ---------------------------------------

Calculating the combined cost of
provincial taxes, utilities and housing is a reliable way to compare the attractiveness of
living in different parts of Canada.

For the purposes of such a
comparison, the total cost of such taxes, utilities and housing for representative
families living in Saskatoon, Saskatchewans largest city, has been compared with the
costs those families would face in other major cities across the country.

These costs associated with the
following family characteristics and income levels have been calculated to provide a
representative comparison:

| | a
single person, living in rental accommodation, with an annual income of $25,000;
|- | ----------------------------------------------------------------------------------

| | a
family of two adults and two dependent children, owning its own home, with an annual
family income of $50,000; and,
|- | ---------------------------------------------------------------------------------------------------------------------

| | a
family of two adults and two dependent children, owning its own home, with an annual
family income of $75,000.
|- | ----------------------------------------------------------------------------------------------------------------

The income of the two families is
assumed to be earned by both spouses, with one earning 60 per cent and the other earning
40 per cent of total family income.

The results of this survey show that
Saskatoon compares favourably with other cities in Canada, having the second lowest
combined taxes and utility costs of the 10 cities surveyed for a single person with an
income of $25,000; the lowest combined taxes and utility costs for the $50,000 family; and
the second lowest combined taxes and utility costs for the $75,000 representative family.

In previous years, Saskatoon
consistently ranked as the lowest for combined taxes, utilities and housing costs of the
10 cities surveyed for each of the representative families. However, 2007 witnessed record
home price increases in Saskatoon, reflective of Saskatchewans thriving economy.
Higher home prices were the single factor responsible for Saskatoons higher cost
ranking in this comparison.

The combined effect of
Saskatchewans relatively low five per cent Provincial Sales Tax (PST) rate and the
PSTs broad list of personal exemptions means that Saskatchewan families pay the
lowest provincial sales tax in Canada. Alberta, which has no sales tax, levies health care
premiums 1 that approximate the sales tax paid in Saskatchewan by average families.

---

|1 | Alberta
announced in its 2008-09 Throne Speech the intention to eliminate health
               care premiums by 2012. No specific changes have been announced for the
2008                taxation year.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 51
|----------------------------- | --

---

Saskatchewan individuals and families
pay total provincial taxes that are very competitive with those paid in other Canadian
cities. For 2007, these representative profiles will pay the following total provincial
taxes in Saskatoon:

| | A single
person earning $25,000 will pay $1,938 in total provincial taxes, the fifth lowest tax
level in Canada;
|- | ----------------------------------------------------------------------------------------------------------------

| | A two-income
family earning $50,000 will pay $3,273 in total provincial taxes, the third lowest tax
level in Canada; and,
|- | -------------------------------------------------------------------------------------------------------------------------

| | A two-income
family earning $75,000 will pay $6,238 in total provincial taxes, the third lowest tax
level in Canada.
|- | --------------------------------------------------------------------------------------------------------------------

All of these factors combine to make
Saskatoon compare very favourably with other Canadian cities when considering the living
costs facing individuals and families.

---

|2008 Intercity Comparison of Taxes, Utilities and Housing
Single Person At $25,000 Total Income
|-----------------------------------------------------------------------------------------------
|
|
|Provincial                                                                                     
|Income Tax                                                                                     
|Tax Credits and                                                                                
|Rebates                                                                                        
|Health Premiums                                                                                
|Retail Sales Tax                                                                               
|Gasoline Tax                                                                                   
|                                                                                               
|Total Provincial                                                                               
|Taxes and Health                                                                               
|Premiums                                                                                       
|                                                                                               
|Household Utility Costs                                                                        
|Electricity                                                                                    
|Telephone                                                                                      
|Auto Insurance                                                                                 
|                                                                                               
|Total Household                                                                                
|Utility Costs                                                                                  
|                                                                                               
|Total Taxes                                                                                    
|and Utilities                                                                                  
|                                                                                               
|Housing Costs                                                                                  
|Rent                                                                                           
|                                                                                               
|Total of Taxes,                                                                                
|Utilities and                                                                                  
|Housing                                                                                        
|                                                                                               

---

|52 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

|2008 Intercity Comparison of Taxes, Utilities and Housing
Single Person At $50,000 Total Income
|-----------------------------------------------------------------------------------------------
|
|
|Provincial                                                                                     
|Income Tax                                                                                     
|Tax Credits and                                                                                
|Rebates                                                                                        
|Health Premiums                                                                                
|Retail Sales Tax                                                                               
|Gasoline Tax                                                                                   
|                                                                                               
|Total Provincial                                                                               
|Taxes and Health                                                                               
|Premiums                                                                                       
|                                                                                               
|Household Utility Costs                                                                        
|Home Heating                                                                                   
|Energy Rebate                                                                                  
|Electricity                                                                                    
|Telephone                                                                                      
|Auto Insurance                                                                                 
|                                                                                               
|Total Household                                                                                
|Utility Costs                                                                                  
|                                                                                               
|Total Taxes                                                                                    
|and Utilities                                                                                  
|                                                                                               
|Housing Costs                                                                                  
|Mortgage Costs                                                                                 
|Property Taxes                                                                                 
|Property Tax Credit                                                                            
|                                                                                               
|Total Housing                                                                                  
|Costs                                                                                          
|                                                                                               
|Total of Taxes,                                                                                
|Utilities and                                                                                  
|Housing                                                                                        
|                                                                                               

---

|Budget
2008-09/Budget Summary | 53
|----------------------------- | --

---

|2008 Intercity Comparison of Taxes, Utilities and Housing
Single Person At $75,000 Total Income
|-----------------------------------------------------------------------------------------------
|
|
|Provincial                                                                                     
|Income Tax                                                                                     
|Tax Credits and                                                                                
|Rebates                                                                                        
|Health Premiums                                                                                
|Retail Sales Tax                                                                               
|Gasoline Tax                                                                                   
|                                                                                               
|Total Provincial                                                                               
|Taxes and Health                                                                               
|Premiums                                                                                       
|                                                                                               
|Household Utility Costs                                                                        
|Home Heating                                                                                   
|Energy Rebate                                                                                  
|Electricity                                                                                    
|Telephone                                                                                      
|Auto Insurance                                                                                 
|                                                                                               
|Total Household                                                                                
|Utility Costs                                                                                  
|                                                                                               
|Total Taxes                                                                                    
|and Utilities                                                                                  
|                                                                                               
|Housing Costs                                                                                  
|Mortgage Costs                                                                                 
|Property Taxes                                                                                 
|Property Tax Credit                                                                            
|                                                                                               
|Total Housing                                                                                  
|Costs                                                                                          
|                                                                                               
|Total of Taxes,                                                                                
|Utilities and                                                                                  
|Housing                                                                                        
|                                                                                               

---

|54 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

TAXES, UTILITIES AND
HOUSING  NOTES

Tax estimates are calculated for the
2008 calendar year using known changes as of February 15, 2008. Household charges for the
bundle of basic utility services (electricity, home heating, telephone and auto insurance)
represent a cost comparison of the actual known utility rates for the 2007
calendar year. This methodology has been chosen due to the uncertainty of attempting to
forecast utility rates for the coming year. The utility figures exclude federal GST,
provincial sales tax and municipal taxes and surcharges.

Provincial Income Tax is calculated
for an individual with $25,000 and two families with $50,000 and $75,000 income
respectively. It is assumed that family income is earned by both spouses at a 60 per cent
to 40 per cent ratio and that the families each claim $3,000 in child care expenses for
two dependent children (ages 6 and 12). Personal non-refundable credits include the
CPP/QPP and EI contribution credits. Gross Québec Personal Income Tax has been
reduced by the Québec Child Care Expense Tax Credit and by the 16.5 per cent
abatement from federal income tax.

Tax Credits and Rebates are
refundable provincial income tax credits and rebates designed to reduce the impact of
retail sales tax, rental payments and property taxes (property tax rebate plans
administered through provincial income tax systems).

Health Premiums are annual premiums
for hospital insurance and medical services.

Retail Sales Tax is based upon
average family expenditure baskets at the total income levels from the Survey of Family
Expenditures in 2004 (Statistics Canada). The sales tax base in each province was
identified from the enacting legislation, with total expenditures adjusted to reflect
Saskatchewan consumption patterns. Provincial retail sales taxes were then estimated based
on taxable expenditures in each province.

Gasoline Tax is based on annual
consumption of 1,000 litres by a single person, and 2,000 litres for each of the families.

Rent is based on average one-bedroom
apartment rents for each metropolitan area, from the Canada Mortgage and Housing
Corporations Rental Market Report, October 2007.

Mortgage Costs are based on average
home prices for a detached bungalow, from the Royal LePage Third Quarter 2007 Survey of
Canadian House Prices, with one-half of the home price being financed over 25 years at a
one-year closed mortgage rate of 6.0 per cent.

Property Taxes are based on the
average estimated taxes for a detached bungalow, from the Royal LePage Third Quarter 2007
Survey of Canadian House Prices. All provincial, municipal, education and library property
taxes are included in the property taxes figures. The property tax credit line refers to
property tax credit programs administered by municipalities on property tax notices.

Home Heating charges are based on an
annual consumption level of 3,200 m3 of natural gas. For Charlottetown and St.
Johns, the figures represent the BTU equivalent consumption of fuel oil.

Electricity charges are based on an
annual consumption level of 4,584 kWh for the renter and 8,100 kWh for the homeowners.

Telephone charges are the basic
service rates for individual residences.

Auto Insurance is based on a
composite index developed by SGI modelled after the index developed by the Consumers
Association of Canada. The index is based on the actual insurance rates quoted for what
the driver would pay in each jurisdiction if they had the same car, same coverage, same
claims history and driving record at a consistent point in time. The Consumers
Association of Canada developed 34 profiles used to create this index. The impact of
Good Driver discounts/rebates have been factored in for all applicable
jurisdictions.

---

|Budget
2008-09/Budget Summary | 55
|----------------------------- | --

---

2008-09 BORROWING AND DEBT

---

GENERAL REVENUE FUND DEBT

The General Revenue Fund (GRF)
borrows for government and Crown corporations.

Public Debt as reported in the Provinces
financial statements is comprised of:

| | Gross
Debt - the amount of money owed to lenders; less
|- | ------------------------------------------------------

| | Sinking
Funds  the amount of money which has been set aside for the repayment of debt.
|- | ---------------------------------------------------------------------------------------

Total Debt, or public debt plus
guaranteed debt, is used by most members of the financial community when analyzing
creditworthiness.

| | Guaranteed
Debt  the debt of Crown corporations and others that the Province has promised to
repay if they are unable to do so.
|- | --------------------------------------------------------------------------------------------------------------------------------

Total debt is discussed in this
budget paper.

Crown corporations are responsible
for the principal and interest payments on their debt. Crown corporation debt is incurred
in the normal course of business, primarily for investment in infrastructure and business
development initiatives which provide revenue streams to service the debt.

Total debt is forecast to decrease by
$451.1 million during 2007-08 and increase by $106.0 million in 2008-09.

Government total debt is forecast to
decrease by $406.5 million during 2007-08 and $207.2 million in 2008-09.

Crown corporation total debt is
forecast to drop by $44.6 million during 2007-08 and then increase by $313.2 million
during 2008-09, due primarily to increases for the utility Crown corporations.

---

|56 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

|TOTAL DEBT OF THE GENERAL REVENUE FUND
As at March 31
|-----------------------------------------------------
|
|Crown Corporation Debt                               
|Gross Debt                                           
|Sinking Funds                                        
|                                                     
|Public Debt                                          
|Guaranteed Debt                                      
|                                                     
|Crown Corporation Total Debt                         
|                                                     
|Government Debt                                      
|Gross Debt                                           
|Sinking Funds                                        
|                                                     
|Public Debt                                          
|Guaranteed Debt                                      
|                                                     
|Government Total Debt                                
|                                                     
|Total Debt                                           
|                                                     

---

|Budget
2008-09/Budget Summary | 57
|----------------------------- | --

---

GENERAL REVENUE FUND
BORROWING

The Province borrows through the sale
of securities in capital markets and through the sale of savings bonds to Saskatchewan
residents.

The Provinces 2008-09 borrowing
requirements are estimated to be $910.9 million, compared to forecast requirements of
$774.0 million in 2007-08.

Borrowing requirements for government
in 2008-09, estimated to be $376.0 million (2007-08 forecast: $343.7 million), are to
assist with refinancing maturing debt ($413.6 million).

Borrowing requirements for Crown
corporations in 2008-09 are estimated to be $534.9 million (2007-08 forecast: $430.3
million).

---

|58 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

---

Reconciliation of
Surplus and Changein Government Total Debt

The amount by which government total
debt will change may be higher or lower than the surplus reported under the accrual basis
of accounting.

The difference between the surplus
and the amount by which government total debt will change is reconciled by:

|1. | Adjusting
the surplus to a cash basis to recognize the amount and timing of non-cash
revenues and expenditures to determine the cash provided from operations;
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Adjusting
for cash required for capital acquisitions;
|-- | -----------------------------------------------------

|3. | Adding
other cash sources or subtracting other cash requirements to recognize the
amountof cash inflows and outflows from loan, investment and other
activities to determine the cashavailable to reduce debt;
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Adding
changes in sinking funds which will be used to repay government debt; and,
|-- | ---------------------------------------------------------------------------------

|5. | Adding
the change in government guaranteed debt.
|-- | ------------------------------------------------

|                                      | Estimated2008-09 | Forecast2007-08
|------------------------------------- | ---------------- | ---------------
|
|Surplus (on Accrual Accounting Basis) |                  |                
|                                     
|1. Adjustment to Cash Basis           |                  |                
|                                     
|Cash Provided by Operations           |                  |                
|                                     
|2. Capital Acquisitions               |                  |                
|                                     
|3. Other Cash Sources                 |                  |                
|                                     
|Cash Available to Reduce Debt         |                  |                
|                                     
|4. Change in Sinking Funds            |                  |                
|                                     
|5. Change in Guaranteed Debt          |                  |                
|                                     
|Decrease in Government Total Debt     |                  |                

---

|Budget
2008-09/Budget Summary | 59
|----------------------------- | --

---

COST OF SERVICING
GOVERNMENT DEBT

In addition to interest payments,
debt servicing costs include all charges related to the Provinces debt, such as the
amortization of premiums, discounts, commissions; and gains or losses on foreign currency
debt that result from a change in the value of the Canadian dollar.

The 2008-09 debt servicing cost
estimates are based on 4.5 per cent short-term and 6.0 per cent long-term interest rates.
An exchange rate of $0.9978 U.S. per $1.00 Canadian has been used to convert U.S. dollar
denominated debt as at March 31, 2008 and March 31, 2009.

A one percentage point increase in
interest rates for a full year from levels assumed in the Budget would increase the
estimated cost of servicing government debt in 2008-09 by approximately $9.8 million.

A one cent change in the value of the
Canadian dollar compared to the U.S. dollar from the level assumed in the Budget would
change the estimated cost in 2008-09 of servicing government debt by approximately $0.3
million.

|COST OF SERVICING DEBT             |  | 
|---------------------------------- |  | 
|
|Crown Corporation Debt             |  | 
|Government Debt                    |  | 
|                                  
|Total Cost of Servicing Gross Debt |  | 
|                                  

SUMMARY STATEMENT OF DEBT

GRF debt includes all debt borrowed
or guaranteed by the GRF for either government purposes or the purposes of certain Crown
corporations. Some Crown corporations and other organizations have additional obligations
to other entities, either by borrowing directly or by guaranteeing the debt of others. The
GRF is not responsible for this other debt.

The Summary Statement of Debt on page
83 calculates the total debt of government entities by listing both the GRF debt and the
debt to other entities.

|SUMMARY STATEMENT OF DEBTAs at March 31 |  |  |  
|--------------------------------------- |  |  | -
|
|GRF Total Debt for Crown Corporations   |  |  | $
|GRF Total Debt for Government           |  |  |  
|                                       
|GRF Total Debt                          |  |  | $
|Other Debt                              |  |  |  
|                                       
|Summary Statement of Debt               |  |  | $
|                                       

---

|60 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GROWTH AND FINANCIAL
SECURITY FUND

---

The Growth and Financial Security
Fund (GFSF) will be established with the assent of The Growth and Financial Security Act,
introduced on December 13, 2007.

The purpose of the GFSF is two-fold:

| | to
assist in the achievement of the Government of Saskatchewans long-term objectives by
providing for financial security of the Government of Saskatchewan from year to
year; and,
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | to
provide a source of funds that are to be available for appropriation to be used for
programs of the Government of Saskatchewan identified as promoting or enhancing the
economic development of Saskatchewan.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

On the coming into force of the Act,
the balances from the Saskatchewan Infrastructure Fund (SIF) and the Fiscal Stabilization
Fund (FSF), as they existed the day before, will be transferred to the GFSF.

The current estimate of the initial
transfers from the SIF and the FSF is $1.3 billion:

$105.1 million + $1,234.2 million = $1,339.3 million

Subsequently, transfers to the GFSF
will represent either:

| | 50
per cent of any pre-transfer surplus for any fiscal year (required); or
|- | --------------------------------------------------------------------------

| | subject
to the approval of Treasury Board, the amount of significant, unexpected revenues
received for the fiscal year, as determined by the minister (special transfer).
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Transfers out of the GFSF may be made
by the minister, subject to the approval of Treasury Board, with the objective of
achieving the aforementioned two-fold purpose.

Balances in the GFSF are invested in
short- and medium-term marketable securities.

|GROWTH AND FINANCIAL SECURITY FUND TRANSACTIONS   
|--------------------------------------------------
|
|Transfer from SIF                                 
|Transfer from FSF                                 
|                                                  
|Opening Balance                                   
|                                                  
|Plus Transfers to the GFSF from the GRF           
|(50% of Pre-Transfer Surplus)                     
|Minus Transfers from the GFSF to the GRF          
|(to provide financial security)                   
|                                                  
|Net Transfers to/(from) the GFSF from/(to) the GRF
|                                                  
|Closing Balance                                   
|                                                  

---

|Budget
2008-09/Budget Summary | 61
|----------------------------- | --

---

DEBT RETIREMENT FUND

---

The Debt Retirement Fund (DRF) will
be established with the assent of The Growth and Financial Security Act, introduced on
December 13, 2007.

The DRF is an accounting of the
surpluses of the GRF that are allocated to the fund on or after April 1, 2008.

The purpose of the DRF is to assist
in achieving the long-term objective of the Government of Saskatchewan in eliminating the
debt.

Allocations to the DRF represent
either:

| | 50
per cent of any pre-transfer surplus for any fiscal year (required); or
|- | --------------------------------------------------------------------------

| | a
transfer made out of the GFSF by the minister, subject to the approval of Treasury Board,
for the purpose of assisting in the long-term objective of eliminating the debt.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|DEBT RETIREMENT FUND FORECAST
|-----------------------------
|
|2008-09 Surplus Forecast     
|2009-10 Surplus Forecast     
|2010-11 Surplus Forecast     
|2011-12 Surplus Forecast     
|                             
|Cumulative Total             
|                             

---

|62 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

READY FOR GROWTH
INITIATIVE:CAPITAL AND INFRASTRUCTURE PLAN

---

ONE BILLION DOLLAR
INFRASTRUCTURE INITIATIVE

The 2008-09 Budget introduces a
significant new capital investment program to ensure the province is ready for growth.
This year, the government will introduce a new $1 Billion Infrastructure Initiative; the
largest capital investment in the provinces history.

The initiative will bring together
resources allowing government to refocus its capital efforts on long-term economic and
social investments, as well as position the province to lever federal infrastructure
dollars in the future.

The investments will flow as industry
capacity permits, however, the monies to support this investment have been set aside. The
plan includes base capital funding of almost $600 million in 2008-09 plus an incremental
investment of $400 million.

The 2008-09 capital and
infrastructure plan will be enriched by an additional $235 million as follows:

| | $35
million for Highways; bringing the total investment in 2008-09 from the proceeds of the
NewGrade Upgrader sale      to $70 million;
|- | ---------------------------------------------------------------------------------------------------------------------------------------

| | $100
million for health facilities primarily to address urgent capital maintenance issues; and,
|- | -----------------------------------------------------------------------------------------------

| | $100
million for major school capital projects and infrastructure upgrades.
|- | ---------------------------------------------------------------------------

In 2009-10, Highways will receive an
additional $70 million associated with the commitment to allocate the proceeds from the
NewGrade Upgrader sale to municipal roads and highways. An additional $100 million will be
allocated in subsequent years as industry capacity permits.

---

|Budget
2008-09/Budget Summary | 63
|----------------------------- | --

---

OVERVIEW OF THE 2008-09
CAPITAL AND INFRASTRUCTURE PLAN

In 2008-09, Saskatchewan will provide
$829.1 million in capital and infrastructure funding throughout the province. This level
of investment is an increase of $294.3 million or 55.1 per cent over the 2007-08 capital
budget, and is double the capital expenditures of just four years ago.

Over the past few years, capital and
infrastructure investments have increased as additional resources became available.
Enhancing this level of investment is necessary to sustain Saskatchewans economic
expansion, to meet the needs of a growing population, and to avoid the experience of other
jurisdictions where there was strong growth over a short period of time. Establishing a
solid infrastructure framework will ensure that Saskatchewan is well positioned to support
its future economic and social needs. In 2008-09, enhanced infrastructure support is
provided for a variety of provincial capital needs, including the previously mentioned
highways, health and education as well as municipal infrastructure, post-secondary
education, government buildings and community cultural and recreation facilities.

|PROVINCIAL CAPITAL AND INFRASTRUCTURE EXPENDITURE SUMMARY
|---------------------------------------------------------
|
|Government-Owned                                         
|Third Party Capital                                      
|                                                         
|Total Capital                                            
|                                                         

---

|64 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

HEALTH

In 2008-09, $100.0 million in new
funding is being provided to address urgent health facility maintenance and repair needs
across the system.

In addition to this major
reinvestment in health infrastructure, funding will also be provided for the following:

| | $31.9
million to continue regional health facility projects and major upgrades already underway
(Regina General Hospital Maternal and Newborn Care, Humboldt Integrated Facility,
Saskatoon Mental Health, Oliver Lodge Long-Term Care Facility in Saskatoon, and
renovations at St. Pauls Hospital in Saskatoon to accommodate the provinces
fifth MRI machine);
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $29.9
million for medical equipment, including diagnostic imaging equipment and patient lifts
to improve workplace safety for health care providers and patients; and,
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $29.3
million to continue work on the new Saskatchewan Disease Control Laboratory, and purchase
information technology and laboratory equipment.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------

EDUCATION

Educations 2008-09 Capital
Budget is $118.3 million and includes:

| | $100.0
million in new funding for 11 new K-12 school projects and infrastructure upgrades,
allowing new major school projects to proceed in Saskatoon, Regina, Prince Albert, Oxbow,
Porcupine Plain, Duck Lake, La Ronge, Maple Creek, Balcarres and Humboldt, and prior year
projects in progress in Norquay, Naicam, Yorkton, and Gravelbourg to be completed;
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $12.4
million for maintenance and renovation projects (under $500,000) across the provincial
K-12 system;
|- | ---------------------------------------------------------------------------------------------------------

| | $5.2
million to support enhanced capital planning, including undertaking building condition
audits in every school      division; and,
|- | --------------------------------------------------------------------------------------------------------------------------------------

| | $0.7
million for the maintenance of existing child care facility infrastructure.
|- | --------------------------------------------------------------------------------

This injection of new capital funding
will enable the Ministry of Education to approve the detailed design for new major capital
projects for the first time since 2003-04. The Ministry will address the most critical
health and safety projects requested, undertake a province-wide assessment of school
infrastructure, and provide school divisions with facilities management software to
support long-range capital planning.

HIGHWAYS

In 2008-09, $238.0 million is
provided to the Ministry of Highways and Infrastructure for government-owned capital. An
additional $170.0 million will be provided in subsequent years for additional highway
projects. In 2008-09, funding is provided for the following:

| | $137.5
million for new construction and enhancing the provincial highway infrastructure;
|- | ----------------------------------------------------------------------------------------

| | $88.2
million for rehabilitation projects; and
|- | ----------------------------------------------

| | $12.3
million for equipment and buildings.
|- | ------------------------------------------

2008-09 CAPITAL AND
INFRASTRUCTURE INVESTMENTS BY MAJOR AREA

In 2008-09, 29 per cent of the
provincial capital and infrastructure plan will be dedicated to improving the provincial
highway system, 23 per cent towards new health facilities and upgrades to existing
facilities and 14 per cent towards new and renovated schools throughout the province.

---

|Budget
2008-09/Budget Summary | 65
|----------------------------- | --

---

Other major capital projects include:

| | $101.7
million in provincial and federal funding for municipal infrastructure, including $10.0
million for the Rural Municipal Primary Weight Corridors Program, and $5.0 million for
Municipal Resource Roads;
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $45.8
million for post-secondary capital projects;
|- | --------------------------------------------------

| | $37.4
million for cultural and recreation facilities;
|- | -----------------------------------------------------

| | $53.0
million for government facilities and equipment, including the Regina Provincial
Correctional Centre, the Saskatchewan Disease Control Laboratory and courthouse security;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | $27.1
million for renewal of the provincial forest fire fleet and fire operations;
|- | ----------------------------------------------------------------------------------

| | $11.3
million for the provincial emergency telecommunications system; and,
|- | --------------------------------------------------------------------------

| | $5.8
million for Parks capital expenditures.
|- | --------------------------------------------

---

|66 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

|CAPITAL AND INFRASTRUCTURE PLAN                       
|------------------------------------------------------
|
|Highways                                              
|Government-Owned Capital                              
|Highway Enhancement                                   
|Highways Rehabilitation                               
|Equipment, Buildings, Improvements                    
|                                                      
|Total Highways                                        
|                                                      
|                                                      
|Health                                                
|Government-Owned Capital                              
|Office and Lab Equipment                              
|Provincial Laboratory                                 
|Other                                                 
|                                                      
|Third Party Capital                                   
|Health Facilities - Life, Safety and Emergency Repairs
|Regina General Hospital - Maternal and Newborn Care   
|Humboldt Integrated Health Care Facility              
|Maidstone Integrated Health Care Facility             
|Moosomin Integrated Facility                          
|Preeceville Integrated Facility                       
|Saskatoon Mental Health                               
|Oliver Lodge Long-Term Care Facility                  
|Health Facilities - Life, Safety, Planning            
|RHA Equipment Capital                                 
|Medical Equipment                                     
|St. Pauls Hospital Renovations (5th MRI)             
|Laundry Facilities                                    
|Ambulatory Surgery Centre                             
|Maternal-Child Facility (Saskatoon)                   
|Other                                                 
|                                                      
|Total Health                                          
|                                                      
|                                                      
|K-12 Schools                                          
|Third Party Capital                                   
|K-12 Major Capital and Infrastructure Upgrades        
|K-12 Block Funding - Renovation and Capital Planning  
|Early Learning Child Care                             
|                                                      
|Total K-12 Schools                                    
|                                                      

---

|Budget
2008-09/Budget Summary | 67
|----------------------------- | --

---

|CAPITAL AND INFRASTRUCTURE PLAN (continued)     
|------------------------------------------------
|
|Municipal Infrastructure                        
|Third Party Capital                             
|Building Canada Fund                            
|Saskatchewan Infrastructure Growth Initiative   
|Gas Tax Program                                 
|Municipal Rural Infrastructure Fund             
|Urban Development Agreements                    
|Transit Vehicles for the Disabled               
|Federal Public Transit Funds                    
|Rural Revenue Sharing - Rural Municipal Roads   
|Rural Municipal Primary Weight Corridors Program
|Municipal Resource Roads Program                
|Canada-Saskatchewan Infrastructure Program      
|Urban Connectors                                
|                                                
|Total Municipal Infrastructure                  
|                                                
|                                                
|Post-secondary Institutions                     
|Government-Owned Capital                        
|SIAST - Kelsey Ontario Avenue Acquisition       
|                                                
|Third Party Capital                             
|Universities Sustaining Capital                 
|Federated Colleges Sustaining Capital           
|SIAST Sustaining Capital                        
|Regional Colleges Sustaining Capital            
|Principle and Interest Costs for Universities   
|Nursing Capacity Expansion                      
|SIAST Kelsey Ontario Avenue Expansion           
|University of Saskatchewan - INTERVAC           
|University of Saskatchewan -                    
|Academic Health Sciences Centre                 
|Health Professional Training Expansions         
|College and Training Seat Expansions            
|                                                
|Total Post-Secondary Institutions               
|                                                
|                                                
|Government Equipment                            
|Government-Owned Capital                        
|Central Vehicle Agency Vehicles and Equipment   
|Provincial Radio Telecommunications System      
|Forest Fire Fleet Renewal                       
|SIAST Palliser - Emergency Power Plant          
|                                                
|Total Government Equipment                      
|                                                

---

|68 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

|CAPITAL AND INFRASTRUCTURE PLAN (continued)             
|--------------------------------------------------------
|
|Government Facilities                                   
|Government-Owned Capital                                
|Walter Scott Building Renovation                        
|Weyburn Courthouse - Elevator Installation              
|Courthouse Design                                       
|Regina Provincial Correctional Centre (Phase 1)         
|Regina Provincial Correctional Centre Kitchen Renovation
|Saskatoon Provincial Correctional Centre                
|Fire Towers and Fire Operations                         
|Saskatoon Courts Capital/Planning                       
|Meadow Lake and La Ronge Courthouse Planning            
|Park Facilities                                         
|Water Infrastructure Rehabilitation                     
|Ministry Small Capital Projects                         
|Courthouse Security Screening                           
|                                                        
|Total Government Facilities                             
|                                                        
|                                                        
|Community Facilities                                    
|Third Party Capital                                     
|Community Cultural and Recreation Facilities -          
|Building Communities                                    
|                                                        
|Total Community Facilities                              
|                                                        
|                                                        
|Information Technology                                  
|Government-Owned Capital                                
|Ministry Information Technology Capital                 
|                                                        
|Total Information Technology                            
|                                                        
|                                                        
|TOTAL CAPITAL                                           
|                                                        

---

|Budget
2008-09/Budget Summary | 69
|----------------------------- | --

---

---

|70 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

SASKATCHEWAN PROVINCIAL
BUDGET

08-09

GENERAL REVENUE FUND (GRF)BUDGET DETAILS

---

---

GENERAL REVENUE FUND

Statement of Operations and
Accumulated Deficit

---

|                                                    | (thousands of dollars)
|--------------------------------------------------- | ----------------------
|
|Revenue                                             |                       
|Operating Expense                                   |                       
|                                                   
|Operating Surplus                                   |                       
|Debt Servicing                                      |                       
|                                                   
|Pre-Transfer Surplus (Deficit)                      |                       
|Transfer (to) Growth and Financial Security Fund    |                       
|Transfer from Growth and Financial Security Fund    |                       
|Transfer from (to) Fiscal Stabilization Fund        |                       
|Transfer from (to) Saskatchewan Infrastructure Fund |                       
|                                                   
|Surplus for the Year                                |                       
|Accumulated Deficit, Beginning of Year              |                       
|                                                   
|Accumulated Deficit, End of Year                    |                       
|                                                   

GENERAL REVENUE FUND

Statement of Change in Net Debt

---

|                                                | (thousands of dollars)
|----------------------------------------------- | ----------------------
|
|Annual Surplus                                  |                       
|Acquisition of Capital Assets                   |                       
|Amortization of Capital Assets                  |                       
|                                               
|(Increase) Decrease in Net Debt from Operations |                       
|Net Debt, Beginning of Year                     |                       
|                                               
|Net Debt, End of Year                           |                       
|                                               

---

|72 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GENERAL REVENUE FUND

Statement of Cash Flow

---

|                                                             | (thousands of dollars)
|------------------------------------------------------------ | ----------------------
|
|Operating Activities                                         |                       
|                                                            
|Surplus for the Year                                         |                       
|Add Non-cash Items:                                          |                       
|Amortization of Foreign Exchange Loss                        |                       
|Amortization of Capital Assets                               |                       
|Loss on Loans and Investments                                |                       
|Net Change in Non-cash Operating Activities                  |                       
|Earnings Retained in Sinking Funds                           |                       
|                                                            
|Cash Provided by (used for) Operating Activities             |                       
|                                                            
|                                                            
|Capital Activities                                           |                       
|                                                            
|Acquisition of Capital Assets                                |                       
|                                                            
|Cash Provided by (used for) Capital Activities               |                       
|                                                            
|                                                            
|Lending and Investing Activities                             |                       
|                                                            
|Receipts                                                     |                       
|Disbursements                                                |                       
|                                                            
|Cash Provided by (used for) Lending and Investing Activities |                       
|                                                            
|                                                            
|Financing Activities                                         |                       
|                                                            
|Borrowing                                                    |                       
|Debt Repayment                                               |                       
|                                                            
|Cash Provided by (used for) Financing Activities             |                       
|                                                            
|(Decrease) Increase in Cash 1                                |                       
|                                                            

|1 | Cash
also includes temporary, short-term (less than 30 days) investments.
|- | -------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 73
|----------------------------- | --

---

GENERAL REVENUE FUND

Schedule of Revenue

---

|                                              | (thousands of dollars)
|--------------------------------------------- | ----------------------
|
|Taxes                                         |                       
|Corporation Capital                           |                       
|Corporation Income                            |                       
|Fuel                                          |                       
|Individual Income                             |                       
|Sales                                         |                       
|Tobacco                                       |                       
|Other                                         |                       
|                                             
|Taxes                                         |                       
|                                             
|Non-Renewable Resources                       |                       
|Crown Land Sales                              |                       
|Natural Gas                                   |                       
|Oil                                           |                       
|Potash                                        |                       
|Other                                         |                       
|                                             
|Non-Renewable Resources                       |                       
|                                             
|Transfers from Crown Entities                 |                       
|Crown Investments Corporation of Saskatchewan |                       
|- Special Dividend                            |                       
|Saskatchewan Liquor and Gaming Authority      |                       
|Other Enterprises and Funds                   |                       
|                                             
|Transfers from Crown Entities                 |                       
|                                             
|Other Revenue                                 |                       
|Fines, Forfeits and Penalties                 |                       
|Interest, Premium, Discount and Exchange      |                       
|Motor Vehicle Fees                            |                       
|Other Licences and Permits                    |                       
|Sales, Services and Service Fees              |                       
|Transfers from Other Governments              |                       
|Other                                         |                       
|                                             
|Other Revenue                                 |                       
|                                             
|Own-Source Revenue                            |                       
|                                             
|Transfers from the Government of Canada       |                       
|Canada Health Transfer                        |                       
|Canada Social  Transfer                       |                       
|Equalization Payments                         |                       
|Other                                         |                       
|                                             
|Transfers from the Government of Canada       |                       
|                                             
|Revenue                                       |                       
|                                              |                       

---

|74 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GENERAL REVENUE FUND

Schedule of Expense

---

|                                          | (thousands of dollars)
|----------------------------------------- | ----------------------
|
|Executive Branch of Government            |                       
|                                          |                       
|Advanced Education, Employment and Labour |                       
|Agriculture                               |                       
|Corrections, Public Safety and Policing   |                       
|Education                                 |                       
|- Teachers Pensions and Benefits         |                       
|Energy and Resources                      |                       
|Enterprise and Innovation                 |                       
|Environment                               |                       
|Executive Council                         |                       
|Finance                                   |                       
|- Public Service Pensions and Benefits 1  |                       
|First Nations and Métis Relations         |                       
|Government Services                       |                       
|Health                                    |                       
|Highways and Infrastructure               |                       
|Information Technology Office             |                       
|Intergovernmental Affairs                 |                       
|Justice and Attorney General 2            |                       
|Municipal Affairs                         |                       
|Office of the Provincial Secretary        |                       
|Public Service Commission                 |                       
|Saskatchewan Research Council             |                       
|Social Services                           |                       
|Tourism, Parks, Culture and Sport         |                       
|                                          |                       
|Legislative Branch of Government          |                       
|                                          |                       
|Chief Electoral Officer                   |                       
|Childrens Advocate                       |                       
|Conflict of Interest Commissioner         |                       
|Information and Privacy Commissioner      |                       
|Legislative Assembly                      |                       
|Ombudsman                                 |                       
|Provincial Auditor                        |                       
|                                         
|Operating Expense                         |                       
|Debt Servicing                            |                       
|                                         
|Expense                                   |                       
|                                          |                       

|1 | Includes
public service pension expenses related to all branches of government (executive,
legislative and judicial).
|- | ---------------------------------------------------------------------------------------------------------------------

|2 | Includes
expenses for the judicial branch of government.
|- | --------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 75
|----------------------------- | --

---

GENERAL REVENUE FUND

Schedule of DebtAs at March 31

---

|                                 | (thousands of dollars)
|-------------------------------- | ----------------------
|
|Crown Corporation Debt           |                       
|                                
|Agricultural Credit Corporation  |                       
|of Saskatchewan                  |                       
|Information Services Corporation |                       
|of Saskatchewan                  |                       
|Investment Saskatchewan Inc.     |                       
|Municipal Financing              |                       
|Corporation of Saskatchewan      |                       
|Saskatchewan Crop                |                       
|Insurance Corporation            |                       
|Saskatchewan Housing             |                       
|Corporation                      |                       
|Saskatchewan Opportunities       |                       
|Corporation                      |                       
|Saskatchewan Power               |                       
|Corporation                      |                       
|Saskatchewan Telecommunications  |                       
|Holding Corporation              |                       
|Saskatchewan                     |                       
|Water Corporation                |                       
|SaskEnergy Incorporated          |                       
|                                
|Crown Corporation Debt           |                       
|Government Debt                  |                       
|                                
|Debt                             |                       
|Guaranteed Debt                  |                       
|                                
|Debt Plus Guaranteed Debt        |                       
|                                
|Crown Corporation Purpose        |                       
|Government Purpose               |                       
|                                
|Debt Plus Guaranteed Debt        |                       
|                                

---

|76 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GENERAL REVENUE FUND

Schedule of Borrowing Requirements

---

|                                                    | (thousands of dollars)
|--------------------------------------------------- | ----------------------
|
|Borrowing for Crown Corporations                    |                       
|                                                   
|Agricultural Credit Corporation of Saskatchewan     |                       
|Municipal Financing Corporation of Saskatchewan     |                       
|Saskatchewan Crop Insurance Corporation             |                       
|Saskatchewan Opportunities Corporation              |                       
|Saskatchewan Power Corporation                      |                       
|Saskatchewan Telecommunications Holding Corporation |                       
|Saskatchewan Water Corporation                      |                       
|SaskEnergy Incorporated                             |                       
|                                                   
|Borrowing for Crown Corporations                    |                       
|Borrowing for Government                            |                       
|                                                   
|Borrowing Requirements                              |                       
|                                                   

---

|Budget
2008-09/Budget Summary | 77
|----------------------------- | --

---

GENERAL REVENUE FUND

Schedule of Guaranteed Debt As at
March 31

---

|                                                | (thousands of dollars)
|----------------------------------------------- | ----------------------
|
|Guaranteed Debt for Crown Corporations          |                       
|                                               
|The Power Corporation Act                       |                       
|Saskatchewan Power Savings Bonds                |                       
|Series I to Series VII (matured)                |                       
|The Saskatchewan Development Fund Act           |                       
|Guaranteed Investments                          |                       
|The Saskatchewan Telecommunications Act         |                       
|TeleBonds (matured)                             |                       
|                                               
|Guaranteed Debt for Crown Corporations          |                       
|                                               
|                                               
|Other Guaranteed Debt                           |                       
|                                               
|The Economic and Co-operative Development Act   |                       
|Vanguard Inc.                                   |                       
|The Farm Financial Stability Act                |                       
|Breeder Associations Loan Guarantees            |                       
|Feeder Associations Loan Guarantees             |                       
|Feedlot Construction Loan Guarantees            |                       
|Individual Feedlot Loan Guarantees              |                       
|Enhanced Feeder Loan Guarantees                 |                       
|The Housing and Special Care Homes Act          |                       
|Senior Citizens Housing                        |                       
|The NewGrade Energy Inc. Act                    |                       
|NewGrade Energy Inc.                            |                       
|The Student Assistance and Student Aid Fund Act |                       
|                                               
|Other Guaranteed Debt                           |                       
|                                               
|Guaranteed Debt                                 |                       
|                                               

---

|78 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

SASKATCHEWAN PROVINCIAL
BUDGET

08-09

SUMMARY FINANCIALBUDGET DETAILS

---

---

GOVERNMENT OF SASKATCHEWAN

Summary Statement of Surplus

---

|                                                            | (millions of dollars)
|----------------------------------------------------------- | ---------------------
|
|Treasury Board Organizations 1                              |                      
|General Revenue Fund (GRF)                                  |                      
|Growth and Financial Security Fund 2, 3                     |                      
|Agricultural Credit Corporation of Saskatchewan             |                      
|Community Initiatives Fund                                  |                      
|Liquor and Gaming Authority                                 |                      
|Regional Colleges                                           |                      
|Regional Health Authorities                                 |                      
|Saskatchewan Agricultural Stabilization Fund                |                      
|Saskatchewan Cancer Agency                                  |                      
|Saskatchewan Communications Network Corporation             |                      
|Saskatchewan Gaming Corporation 4                           |                      
|Saskatchewan Health Information Network                     |                      
|Saskatchewan Housing Corporation                            |                      
|Saskatchewan Institute of Applied Science and Technology    |                      
|Saskatchewan Research Council                               |                      
|Saskatchewan Student Aid Fund                               |                      
|Saskatchewan Watershed Authority                            |                      
|Other Organizations                                         |                      
|Interagency Accounting Adjustments                          |                      
|Adjustment to account for pension costs on an accrual basis |                      
|                                                           
|                                                            |                      
|Dividends included in GRF surplus                           |                      
|                                                           
|Surplus (Deficit) of Treasury Board Organizations           |                      
|                                                           
|CIC Board Organizations 5                                   |                      
|Crown Investments Corporation (non-consolidated) 6          |                      
|Information Services Corporation                            |                      
|Investment Saskatchewan Inc.                                |                      
|SaskEnergy Incorporated                                     |                      
|Saskatchewan Gaming Corporation 4                           |                      
|Saskatchewan Government Insurance                           |                      
|Saskatchewan Opportunities Corporation                      |                      
|Saskatchewan Power Corporation                              |                      
|Saskatchewan Telecommunications Holding Corporation         |                      
|Saskatchewan Transportation Company                         |                      
|Saskatchewan Water Corporation                              |                      
|Other                                                       |                      
|                                                           
|                                                            |                      
|Dividends included in GRF surplus                           |                      
|                                                           
|Retained Surplus of CIC Board Organizations                 |                      
|                                                           
|Surplus (Deficit) Prior to                                  |                      
|Not-for-Profit Insurance Organizations                      |                      
|                                                           

---

|80 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GOVERNMENT OF SASKATCHEWAN

Summary Statement of Surplus

---

|                                                            | (millions of dollars)
|----------------------------------------------------------- | ---------------------
|
|Surplus (Deficit) Prior to                                  |                      
|Not-for-Profit Insurance Organizations                      |                      
|                                                           
|                                                           
|Not-for-Profit Insurance Organizations 7                    |                      
|                                                           
|Saskatchewan Auto Fund 8                                    |                      
|Saskatchewan Crop Insurance Corporation                     |                      
|Crop Reinsurance Fund of Saskatchewan                       |                      
|Workers Compensation Board (Saskatchewan)                  |                      
|                                                           
|Surplus (Deficit) of Not-for-Profit Insurance Organizations |                      
|                                                           
|                                                           
|Surplus (Deficit)                                           |                      
|Accumulated Deficit, Beginning of Year                      |                      
|                                                           
|Accumulated Deficit, End of Year                            |                      
|                                                           

|1 | The
budgets of these organizations are subject to Treasury Board review and include any
transfers from the GRF.
|- | ---------------------------------------------------------------------------------------------------------------

|2 | The
Growth and Financial Security Fund is created by The Growth and Financial Security Act
which upon coming into force transfers the balancesfrom the Fiscal Stabilization Fund
and Saskatchewan Infrastructure Fund into the Growth and Financial   Security Fund.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3 | The
2007-08 Estimated and Forecast amounts are the net transfers to (from) the Fiscal
Stabilization Fund and the   Saskatchewan Infrastructure Fund.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|4 | In
2007, the Saskatchewan Gaming Corporations (SGC) Act was amended placing it under the
management of the CIC Board and   changing its yearend from March 31 to December 31
effective April 1, 2008. One half of the corporation's net income is paid to the   GRF
for the First Nations Trust,the Métis Development Fund and the Community Initiatives
Fund and will now be classified as an   expense rather than a dividend as in prior years.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5 | The
budgets of these organizations are on a calendar year basis and may include grants from
CIC.
|- | ------------------------------------------------------------------------------------------------

|6 | Excludes
dividend revenue from subsidiaries.
|- | --------------------------------------------

|7 | These
insurance organizations establish rates and fees that will allow them to be actuarily
sound over the long term.
|- | ---------------------------------------------------------------------------------------------------------------------

|8 | The
Auto Fund financial projections are on a calendar year basis. The 2007-08 Estimated and
Forecast deficits are net of a $100M rebate tocustomers. However, since the commitment
to this rebate occurred prior to the Governments fiscal year end of March   31, 2007,
this rebate wascharged to the 2006-07 fiscal year. The adjustment to correct the timing
of the rebate expense is included in the Interagency AccountingAdjustment amount.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 81
|----------------------------- | --

---

GOVERNMENT OF SASKATCHEWAN

Summary Statement of Changes in Net
Debt

---

|                                | (millions of dollars)
|------------------------------- | ---------------------
|
|Surplus (Deficit)               |                      
|Acquisition of Capital Assets 1 |                      
|Amortization Expense            |                      
|                               
|Decrease (Increase) in Net Debt |                      
|Net Debt, Beginning of Year     |                      
|                               
|Net Debt, End of Year           |                      
|                               

|1 | These
amounts only reflect capital acquisitions by government service organizations such as the
GRF and regional health   authorities.The amounts do not include capital assets acquired
by government business enterprises like SaskPower and SaskTel.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|82 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GOVERNMENT OF SASKATCHEWAN

Summary Statement of DebtAs at
March 31

---

|                                        | (millions of dollars)
|--------------------------------------- | ---------------------
|
|Treasury Board Organizations            |                      
|GRF - Government Public Debt            |                      
|                                       
|Agricultural Credit Corporation         |                      
|of Saskatchewan                         |                      
|Municipal Financing Corporation         |                      
|of Saskatchewan                         |                      
|Regional Health Authorities             |                      
|Saskatchewan Gaming Corporation         |                      
|Saskatchewan Housing Corporation        |                      
|Other                                   |                      
|                                       
|Public Debt of                          |                      
|Other Treasury Board Organizations      |                      
|                                       
|Public Debt of                          |                      
|Treasury Board Organizations            |                      
|                                       
|CIC Board Organizations                 |                      
|Information Services Corporation        |                      
|of Saskatchewan                         |                      
|Investment Saskatchewan Inc.            |                      
|Saskatchewan Gaming Corporation         |                      
|Saskatchewan Opportunities Corporation  |                      
|Saskatchewan Power Corporation          |                      
|Saskatchewan Telecommunications         |                      
|Saskatchewan Water Corporation          |                      
|SaskEnergy Incorporated                 |                      
|                                       
|Public Debt of CIC Board Organizations  |                      
|                                       
|Not-for-Profit Insurance Organizations  |                      
|Saskatchewan Crop Insurance Corporation |                      
|                                       
|Public Debt of Not-for-Profit           |                      
|Insurance Organizations                 |                      
|                                       
|Public Debt                             |                      
|Guaranteed Debt                         |                      
|                                       
|Total Debt                              |                      
|                                       

|1 | Debt
obtained by the General Revenue Fund for its own use or on behalf of Crown corporations.
The amount is net of sinking   funds.Debt repayable in foreign currency is restated in
Canadian dollar equivalents.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Budget
2008-09/Budget Summary | 83
|----------------------------- | --

---

GOVERNMENT OF SASKATCHEWAN

Tangible Capital Asset Schedule of
Government Service Organizations (GSOs)

---

|                        | (millions of dollars)
|----------------------- | ---------------------
|
|General Revenue Fund    |                      
|Treasury Board GSOs     |                      
|CIC Board GSOs          |                      
|                       
|Total Government        |                      
|Service Organizations 2 |                      
|                       

|1 | Net
Book Value is per the 2006-07 Public Accounts.
|- | --------------------------------------------------

|2 | These
amounts only reflect capital assets of government service organizations such as the GRF
and regional health   authorities. The amountsdo not include capital assets of
government business enterprises such as SaskPower and SaskTel which the   2006-07 Public
Accountsindicate have a net book value of $5.8 billion as at March 31, 2007.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

GOVERNMENT OF SASKATCHEWAN

Pension Liabilities

---

|                                                            | (millions of dollars)
|----------------------------------------------------------- | ---------------------
|
|Pension Liabilities - Beginning of the Year                 |                      
|Adjustment to account for pension costs on an accrual basis |                      
|                                                           
|Pension Liabilities - End of the Year                       |                      
|                                                           

|1 | Pension
Liability as at March 31, 2007 as reported in the 2006-07 Public Accounts.
|- | ----------------------------------------------------------------------------------

---

|84 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

GOVERNMENT OF SASKATCHEWAN

Notes to the Summary
Financial Budget

---

REPORTING ENTITY

The Summary Financial Budget reports
the expected financial activities of the General Revenue Fund and organizations controlled
by government. This reporting entity is the same as is used in the governments
Summary Financial Statements in the Public Accounts.

METHOD OF CONSOLIDATION

There are two basic methods of
combining the activities of organizations in the reporting entity. One is to combine each
organization on a line-by-line basis where all assets, liabilities, revenue, and expenses
are added together and significant inter-organization balances and transactions are
eliminated. The other approach is referred to as the modified equity method where the
equity and net income of each organization is combined with the central organization, the
General Revenue Fund. Both methods arrive at the same bottom-line financial results and
position.

The Public Accounts uses both
methods. A line-by-line consolidation is used for government service organizations like
regional health authorities and the modified equity method is used for government business
enterprises, like SaskPower. The Summary Financial Budget combines all organizations on a
modified equity basis for the purposes of calculating the Governments surplus.

GOVERNMENT BUSINESS
ENTERPRISES

These are self-sufficient government
organizations that have the financial and operating authority to sell goods and services
to individuals and organizations outside the government as their principal activity. These
organizations comprise: Liquor and Gaming Authority, Municipal Financing Corporation, the
Auto Fund, Saskatchewan Gaming Corporation, Saskatchewan Government Growth Fund, SGI,
SaskPower, SaskTel, SaskEnergy and the Workers Compensation Board.

GOVERNMENT SERVICE
ORGANIZATIONS

All government organizations
including the General Revenue Fund that are not government business enterprises are
considered government service organizations.

CAPITAL ASSETS

The financial information on capital
assets displayed in the summary financial budget relate only to those capital assets owned
and utilized by the General Revenue Fund and other government service organizations. These
assets tend to be assets that facilitate public service such as transportation, health
care and education.

---

|Budget
2008-09/Budget Summary | 85
|----------------------------- | --

---

Capital assets owned by government
business enterprises are typically commercial assets designed to generate income such as
electrical generating plants. The Governments summary financial statements consider
the value of capital assets of GBEs as part of the investment in government business
enterprises. Schedule 4 of the 2006-07 Public Accounts indicates that the net book
value of capital assets of government business enterprises is $5.8 billion.

INTERAGENCY ACCOUNTING
ADJUSTMENTS

The Summary Financial Budget 
Summary Statement of Surplus will reflect the forecasted surplus of the various government
organizations based on their accounting standards and specific fiscal years. Adjustments
to: ensure transfer payments between government organizations are accounted for in the
same year; ensure accounting standards are consistent: and, any accounting for significant
events in the stub period (time between the organizations fiscal year end and March
31) are reflected in the Interagency Accounting Adjustment amount.

ADJUSTMENT TO ACCOUNT FOR
PENSION COSTS ON ANACCRUAL BASIS

The General Revenue Fund accounts for
pension costs on a cash basis, i.e., money paid to pension plans and pensioners. The
Canadian Institute of Chartered Accountants requires that accrual accounting be used for
pension costs. Accrual accounting recognizes pension costs when they are earned rather
than when they are paid. This adjustment is required to the Summary Budgeted Surplus to
reflect accrual accounting for pension costs.

GOVERNMENT OF SASKATCHEWAN

Description of Government
Organizations

Categorization of
Government Organizations

The summary financial budget
categorizes organizations by which Cabinet Committee, Treasury Board and Crown Investment
Corporation (CIC) Board, would examine the organizations budget and plans. The other
categorization is the Not-for-Profit Insurance organizations. These organizations are
intended to be actuarially sound over the long term. They will typically adjust their
rates to break even over the longer term. The General Revenue Fund does not take a
dividend from these organizations

TREASURY BOARD
ORGANIZATIONS

Agricultural Credit
Corporation of Saskatchewan (ACS)

ACS was established pursuant to the
provisions of The Agricultural Credit Corporation Act which came into force on January 1,
1984. ACS manages a food industry development division and manages the wind down of the
corporations agricultural loan portfolio, agri-food investment portfolio, and loan
guarantee program.

Community Initiatives Fund

The Community Initiatives Fund has
operated since 1996 according to the provisions of The Saskatchewan Gaming Corporation Act
1994. It is managed by a Board of Trustees consisting of eight people appointed by the
Lieutenant Governor in Council. The Fund receives 25 per cent of the net profits of the
Saskatchewan Gaming Corporation minus $2 million for the Métis Development Fund.
The Community Initiatives Fund provides grants for activities that strengthen human
development and community vitality.

---

|86 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

Municipal Financing
Corporation of Saskatchewan (MFC)

The Municipal Financing Corporation
of Saskatchewan (MFC) was established in 1969 and continues under The Municipal Financing
Corporation Act. MFC assists in making capital funds available for the financing of
essential local improvements, schools, hospitals, and other construction projects in
cities, towns, villages and rural areas throughout the province. MFC may borrow directly
from private lending institutions or through the Ministry of Finance. The funds borrowed
are used to purchase all or a portion of the approved debentures sold each year by
Saskatchewan local governments.

Regional Colleges

Eight regional colleges, operating
under the authority of The Regional Colleges Act, provide educational services and
programs in over 40 locations throughout the province. Through partnerships with
universities and technical institutes such as SIAST, regional colleges deliver credit
programs in response to the needs of rural and northern Saskatchewan. Regional colleges
also offer literacy and basic education, industry credit and non-credit programs based on
local needs and provide a broad array of counselling and assessment services geared to
assisting individuals with career planning.

Regional Health
Authorities (RHAs)

The Regional Health Services Act was
proclaimed on August 1, 2002. Health services in Saskatchewan are delivered by 12 RHAs.
Major services of responsibility include:

| | Hospitals;
|- | ----------

| | Health
centres, wellness centres, and social centres;
|- | -----------------------------------------------------

| | Emergency
response services, including first responders, ambulance;
|- | -------------------------------------------------------------------

| | Supportive
Care, such as long-term care, day programs, respite, palliative care and programs for
patients with multiple disabilities;
|- | -------------------------------------------------------------------------------------------------------------------------------------

| | Home
care;
|- | ----------

| | Community
health services, such as public health nursing, public health inspection, dental health,
vaccinations, and speech pathology;
|- | --------------------------------------------------------------------------------------------------------------------------------------

| | Mental
health services; and
|- | ---------------------------

| | Rehabilitation
services.
|- | ------------------------

Saskatchewan Agricultural
Stabilization Fund

The Fund was established under The
Farm Financial Stability Act. The following programs exist within the Fund: New Crops
Insurance Program; Big Game Damage Compensation Program; Waterfowl Damage Compensation
Program; Canadian Farm Income Program, and, Canada-Saskatchewan Assistance Program (CSAP
II).

Saskatchewan Cancer
Agency (SCA)

SCA was established pursuant to The
Cancer Foundation Act which was superseded by The Cancer Agency Act on January 2, 2007.
SCA is responsible for the planning, organization, and delivery and evaluation of cancer
care services throughout Saskatchewan in collaboration with RHAs and health care
organizations. SCA provides for the detection, diagnosis, testing, treatment and
monitoring of individuals; treatment or rehabilitation services; education of health care
providers and Saskatchewan residents respecting cancer and the prevention of cancer;
prevention and screening; and cancer research and studies.

---

|Budget
2008-09/Budget Summary | 87
|----------------------------- | --

---

Saskatchewan
Communications Network (SCN)

SCN is governed by The Communications
Network Corporation Act. SCN operates in three key areas  broadcast television,
e-learning and technology services. The Corporations public broadcast network
provides quality commercial-free educational, childrens and cultural programming.
SCN broadcast network is delivered to the public throughout the province on cable,
satellite and digital cable systems. The e-learning division operates distance learning
networks on behalf of the Ministries of Education and Advanced Education, Employment and
Labour that link the provinces universities, SIAST, regional colleges, high schools
and government departments. The technology services division provides a variety of
services including high-speed Internet, via satellite, to rural and northern communities.

Saskatchewan Health
Information Network (SHIN)

SHIN was established by
Order-in-Council pursuant to the provisions of The Crown Corporations Act, 1993.
SHINs mandate is to implement, own, operate and manage the provincial health
information network and deliver information technology solutions in a timely, effective
manner reflecting the priorities of the health system. The information network is
connecting front-line care providers and delivery organizations across the province,
providing them with timely and secure access to information they need in continuing to
improve health care services for the people of the province.

Saskatchewan Housing
Corporation (SHC)

SHC operates under the authority of
The Saskatchewan Housing Corporation Act. The Corporation provides suitable and affordable
housing for moderate to low-income seniors, and for families and individuals with an
identified need. SHC also improves access to other housing programs and services that
enable its clients to achieve or maintain independence. SHC funds and administers nearly
31,000 housing units in more than 300 communities through local housing authorities and
non-profit organizations. SHC receives funding from the GRF, Canada Mortgage and Housing
Corporation and municipalities.

Saskatchewan Institute of
Applied Science and Technology (SIAST)

SIAST operates under the authority of
The Saskatchewan Institute of Applied Science and Technology Act. SIAST provides
post-secondary technical education and skills training through its four urban campuses in
Regina, Saskatoon, Moose Jaw and Prince Albert and a Virtual Campus to help meet the needs
of students and employers.

SIAST offers certificate, diploma and
apprenticeship programs through six divisions: Business and Entrepreneurial Studies;
Community Services; Industrial Training; Nursing; Science and Health; and Technology. In
addition, SIAST offers basic skill development programs in Adult Basic Education, Basic
Literacy, English as a Second Language, General Educational Development (GED) Testing and
Preparation, High School Completion, and Life Skills.

Saskatchewan Liquor and
Gaming Authority (SLGA)

SLGA is governed by The Alcohol and
Gaming Regulation Act, 1997. SLGA is responsible for the distribution, control, and
regulation of liquor and gaming across the province. SLGA warehouses and distributes wine,
spirits and domestic and imported beer to SLGA stores and franchises for sale to the
public and permittees. Most mainstream beer is distributed by Brewers Distribution
Ltd. to retail liquor stores, some franchises and commercial

---

|88 | Budget
2008-09/Budget Summary
|-- | -----------------------------

---

permittees. SLGA owns and
operates all video lottery terminals and owns and manages the slot machines at all
Saskatchewan Indian Gaming Authority casinos. SLGA also licenses and regulates most forms
of gaming including bingo, raffles, casinos, breakopen tickets, and horse racing.

Saskatchewan Research
Council (SRC)

SRC was established in 1947 at a time
when people were very aware of the role that science and technology played in winning the
Second World War. The concept was that science and technology could be an instrument to
build a better life for Saskatchewan people. The Council undertakes matters pertaining to
research, development, design, consultation, innovation, and commercialization of science
for the improvement of the provinces welfare. SRC creates wealth through the
responsible application of science and technology to assist Saskatchewan industry to be
globally competitive.

Saskatchewan Student Aid
Fund

The Saskatchewan Student Aid Fund
operates under the authority of The Student Assistance and Student Aid Fund Act, 1985. The
primary purpose of the Fund is to support the Saskatchewan Student Assistance Program.

Saskatchewan Watershed
Authority

Established under The Saskatchewan
Watershed Authority Act, 2002 as part of the governments Long Term Safe Drinking
Water Strategy, the Saskatchewan Watershed Authority has a mandate to manage water
supplies and protect source water quality. The Authority is the lead agency for integrated
water management in Saskatchewan, with general authority over matters related to the
sustainability of aquatic ecosystems and their related land resources.

CIC BOARD ORGANIZATIONS

Crown Investments
Corporation (CIC)

CIC is the financially
self-sufficient holding company for 11 subsidiary commercial Crown corporations. The
Government Finance Office (GFO) was established in 1947 to act as a holding company for
many of Saskatchewans Crown corporations and to be a mechanism for developing broad
policy control, directing investment, and routing dividends into the governments
consolidated fund. In 1978, the GFO was renamed Crown Investments Corporation of
Saskatchewan. The Crown Corporations Act, 1993, is the current governing legislation.

Information Services
Corporation of Saskatchewan (ISC)

ISC was established on January 1,
2000, as a wholly-owned subsidiary of CIC. ISC is responsible for the administration of
land titles and survey legislation, and the Personal Property Registry. Its mandate
includes the re-evaluation, redesign and automation of Saskatchewans land titles
system and its integration with the provincial survey, mapping and geographic information
systems, including the development of a foundation for common services.

Investment Saskatchewan
Inc.

Investment Saskatchewan was formerly
known as CIC Industrial Interests Inc. It became a stand alone subsidiary in September
2003. The corporations mandate is to enhance Saskatchewans long-term economic
growth and diversification by providing investment capital and financing, and to ensure
prudent management of commercially viable investments. Effective November 1, 2006,
Investment Saskatchewan outsourced the management of its investment portfolio to Victoria
Park Capital Inc.

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Saskatchewan Gaming
Corporation (SaskGaming)

SGC was established under The
Saskatchewan Gaming Corporation Act, 1994 to operate Casino Regina and Casino Moose Jaw
under a framework agreement that provides for sharing of net profits between the General
Revenue Fund, First Nations Trust and the Community Initiatives Fund. Casino Regina opened
to the public January 26, 1996, with the Show Lounge opening in November 2001. Casino
Moose Jaw opened on September 6, 2002. The corporations Act was amended in 2007 to
effectively place the corporation under the management of CIC Board and change its fiscal
year end from March 31 to December 31 effective April 1, 2008.

Saskatchewan Government
Insurance (SGI)

SGI was established in 1945 to
provide affordable, good quality insurance to Saskatchewan people. Under the trade name
SGI CANADA, which is a wholly-owned subsidiary of CIC, it conducts a competitive property
and casualty insurance business in seven Canadian provinces. It offers a comprehensive
line of home, tenant, farm, automobile extension and commercial coverage.

Saskatchewan
Opportunities Corporation (SOCO)

SOCO is a wholly-owned subsidiary of
CIC which was established in 1994. SOCO supports the growth and success of
Saskatchewans technology sector through the operation of the Saskatchewan Forest
Centre in Prince Albert, and two research parks on the campuses of the provinces two
universities: Innovation Place in Saskatoon, and the Regina Research Park.

Saskatchewan Power
Corporation (SaskPower)

SaskPower is a wholly-owned
subsidiary of CIC that was established as the Saskatchewan Power Commission in 1929. Its
purpose was to provide safe, reliable, cost-effective power to Saskatchewan people. Today,
SaskPower is the principal supplier of electricity in Saskatchewan to more than 445,000
residential, farm commercial, oilfield power and reseller customers.

Saskatchewan
Telecommunications (SaskTel)

SaskTel is a wholly-owned subsidiary
of CIC which was established as the Department of Railway, Telephones and Telegraphs in
1908. The corporation is the leading full service provider in Saskatchewan of voice, data,
dial-up and high-speed Internet, entertainment and multimedia services, security, web
hosting, text and messaging services, and cellular and wireless data services over its
digital networks.

Saskatchewan
Transportation Company (STC)

STC is a wholly-owned subsidiary of CIC
that has been providing passenger transportation, parcel express and freight services
throughout the province since 1946. The bus company was established to ensure that as many
communities as possible had access to reasonably priced transportation. Today, STC and its
network of 190 agencies operates 28 bus routes serving 278 communities in the province.

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Saskatchewan Water
Corporation (SaskWater)

SaskWater, a wholly-owned subsidiary
of CIC, was established in 1984. Headquartered in Moose Jaw, SaskWater designs, builds,
owns and operates water supply and wastewater systems providing quality water to
Saskatchewan industries, municipalities, First Nations and rural water user groups.

SaskEnergy Incorporated
(SaskEnergy)

Saskatchewans provincially
owned natural gas system began operations in 1952. SaskEnergy, which is a wholly-owned
subsidiary of CIC, was formed in 1988 to continue providing natural gas transmission and
distribution services across the province. The system has grown substantially over the
years, with service now extended to more than 90 per cent of Saskatchewan communities.
Today, SaskEnergy provides safe, reliable and economical natural gas service to more than
332,000 residential, farm, commercial and industrial customers in the province.

NOT-FOR-PROFIT INSURANCE
ORGANIZATIONS

Saskatchewan Auto Fund

The Fund is the provinces
compulsory auto insurance program and the provider of its drivers licensing and
vehicle registration system. The Fund does not receive or provide money to the province.
The Fund is administered by SGI.

Saskatchewan Crop
Insurance Corporation (SCIC)

SCIC operates under the authority of
The Crop Insurance Act and The Farm Financial Stability Act. The Corporation administers
insurance programs which protect crop and livestock producers from production failures due
to natural hazards. The Corporation also delivers the Waterfowl Damage Compensation
Program and the Big Game Damage Compensation Program.

Crop Reinsurance Fund of
Saskatchewan

The Fund provides reinsurance
coverage for the Saskatchewan Crop Insurance Corporation against losses in excess of the
net premiums, indemnities and accumulated reserves. Reinsurance for the Saskatchewan crop
insurance program is provided by the federal and provincial governments under the terms of
the Canada-Saskatchewan Production Insurance Agreement. Payments are made from each
governments reinsurance fund based on a formula set out in the agreement and each is
responsible for the accumulated deficits of their fund.

Workers
Compensation Board (WCB)

The WCB was established in 1930. It
is a no fault insurance program that protects workers and employers from the results of
work injuries. The WCB collects annual premiums from employers and uses those funds to
compensate injured workers for the lost income and expenses. The objective is to return
workers to wellness and to a safe, productive work environment as soon as medically
possible.

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