The provincial government is reporting that its finances strengthened in the 2021-22 fiscal year, with higher revenue than was forecast. Finance Minister Donna Harpauer says it’s because of higher potash and oil prices, so there was an increase to non-renewable resource revenue. There was also higher personal income, corporate income and sales tax revenue. The deficit at year-end was $1.47-billion, which is $1.14-billion lower than was expected.
Harpauer adds that widespread drought significantly impacted agriculture expenses, and health spending was also up due to continued costs of the pandemic. Public debt at year-end though, was $529-million lower than budget, because the government didn’t need to borrow as much, because of the lower deficit.
-Total revenue of $18.14 billion was up $3.66 billion, from the projection in the 2021-22 Budget. While most revenue categories experienced increases, higher taxation revenue and non-renewable resource revenue were significant contributors to the increase in total revenue.
-Non-renewable resource revenue was $2.92 billion in 2021-22, an increase of $1.59 billion, compared to the forecast at budget. Higher potash, oil, and natural gas prices, and resulting increases to the resource surcharge, drove the increase.
-Taxation revenue of $8.20 billion in 2021-22 was up $964.26 million. The increase was largely due to higher revenue from corporation and individual income taxes and from provincial sales and fuel taxes, underscoring the province’s resilience as it began to recover from the pandemic.
-Total expense of $19.60 billion in 2021-22 was $2.52 billion, higher than projected at budget. The increase was primarily due to higher than forecast agriculture expense of $3.19 billion in 2021-22, up $2.32 billion, or 263.3 per cent, from budget. Drought conditions across the province in the spring and summer of 2021 resulted in record crop insurance indemnities of $2.55 billion, and relief payments for livestock producers.
-Health expense was $6.88 billion in 2021-22, up $348 million from the projection at budget. Increases were largely due to pandemic-related costs.
-Saskatchewan’s $27.24 billion in public debt at March 31, 2022, is down $529 million from budget, in part due to a lower deficit.
