As the rookie Minister of Finance during a period of rising resource revenues, including $1 billion in oil revenue alone, Thomson announced a then record $7.7 billion budget, and introduced several large tax cuts. These cuts included cutting the corporate form 17% to 14% and cutting the 0.6% capital gains tax in half, while promising the further lower the former to 12% and eliminate the latter altogether. The budget also expanded health funding by $200 million, including $4.9 million to the University of Saskatchewan's College of Medicine, an increase in education spending, as well as an increase in welfare rates. The budget's financial projection were based on a $60 barrel of oil.