The provincial budget was tabled in Regina Wednesday and Humboldt Mayor Rob Muench is calling it a "good news, bad news" report.

There was two key announcements he was glad to hear.

"The Highway 5 project, passing lanes going into Saskatoon from Humboldt has been approved in the capital budget so that's really good news. We're going to see that project go ahead, there's been a lot of talk about that recently. The other piece of good news is the revenue sharing hasn't been change."

That funding will be lower than the previous year just because spending is down as it works on the provincial sales tax. That is rising from five percent to six percent.

Muench admitted that could cut into the city's coffers when it comes to larger purchases.

"The City of Humboldt is a purchaser like everybody else so when you get a one percent increase in your PST it's going to effect us. We haven't worked out the details yet on that but that will coming forward in the next little while how much it's going to effect our budget in the year to come."

Some worrisome notes were the likely cuts to the Urban Highways Connector Program which helps communities cover provincial roadway repairs in their centres say Highway 5 and 20.

"These numbers could be fairly substantial so we're just consulting with the Saskatchewan Urban Municipality Association just to see how that's going to effect us. Some numbers that are coming out of other cities in the province are looking kind of scary so we will look into how that works out."

Some other key points from the 2017-18 budget is the braking of the Saskatchewan Transportation Company, increases to the taxes on alcohol and cigarettes and with the increase to PST it will also be applied to children's close and restaurant meals.

A $685 million dollar deficit is forecasted, that number will drop to $304 million next year, the SaskParty Government is shooting for a $15 million surplus by year three of the plan.

Currently the provincial debt load is $1.3 billion.

You can hear more from Muench below who reacted to the budget Wednesday evening.