The Finance Minister of Saskatchewan is nervous about the 2019-20 budget. Donna Harpauer says the adjusted forecast following the first quarter is calling for a thin surplus of close to 26-million dollars, about 9-million lower than the original prediction, but still balanced.

Harpauer says the pension expense is having a significant effect. She points out the non-cash accounting item added to the budget process is coming in over 300-million dollars higher than forecast because of decreasing interest rates. She is also concerned about the possibility of an early frost hurting agriculture revenue and says more international factors like the Chinese ban on Saskatchewan Canola could have a negative impact on the bottom line.

Revenue is forecast at just over 15.38 billion dollars, an increase of around 355-million. Expenses are expected to come in at 15.35 billion, which is about 364-million higher. The finance department says both are 2.4-percent differences. Harpauer says a bump in potash prices and higher than expected federal transfer payments are partially responsible for the increased revenue projection.

The province projects debt will drop 267.5 million because of decreased debt for Government Business Enterprises.

The NDP finance critic has a different view of Saskatchewan’s economic situation. Trent Wotherspoon says the government is over a billion dollars in debt, while still forecasting a balanced budget for the end of the fiscal year.

Wotherspoon says the NDP continued to call for something like a rainy day fund back when the province was in a boom, but it didn’t happen and now the province is dealing with the effects. He believes imposing the PST on the construction industry was the wrong decision and he is also concerned with the decision to hike potash royalties without any consultation, saying it hurts an important provincial industry. (CKRM, CJWW)