Saskatchewan may take a hit on federal budget's TFSA move

Ken Krawetz, Saskatchewan's minister of finance, says a federal budget move to increase Tax Free Savings Account room could lead to a drop in revenue for the province.

Krawetz watched Tuesday as Joe Oliver delivered the federal budget.

He found some positive moves. Changes to RRSPs for seniors, to help their savings last longer, was viewed as good news by Krawetz. He also applauded the federal government's plan to extend employment insurance benefits to care for a sick or dying relative from six weeks to six months.

Another move, concerning tax free savings accounts, met with some concern from Kravetz. The annual TFSA contribution limit is being increased from $5,500 to $10,000.

Krawetz said that could translate into a hit on the provincial treasury.

"For us as a province when you have interest dollars that normally would be taxed by the province unfortunately an increase in the TFSA means less revenue for the province of Saskatchewan," Kravetz said. "So we'll have to deal with that."

How much depends on how many people use the increased savings room and how much they sock away.

Krawetz said it could lead to a revenue drop of more than $500,000 for the province.

Krawetz also noted he was looking for additional spending by the federal government on infrastructure, which didn't materialize as hoped.