Because of resource revenue and higher taxation revenue, the province has more money coming in than was expected. Finance Minister Donna Harpauer’s mid-year report says the forecast is for a $1.1-billion surplus by the end of this year, as compared to the original forecast of an almost $500-million deficit. As a comparison, the deficit forecasted in the previous fiscal year was originally $2.6-billion, and in last year’s mid-year update it was $2.7-billion, which would have been the highest deficit the province had ever seen. The year ended with a deficit of $1.47-billion, and now this year is expected to be an over $1-billion surplus.
Harpauer says revenue prices go up and down, so using the revenue for year-to-year operating expenses isn’t recommended, because if the revenue lowers, then you don’t have the money to continue the services. That’s why she prefers using the money for one-time funding, like capital projects and the $500 affordability cheques. She notes that the government decided against bringing down utility prices because Saskatchewan already has the lowest utility bundle in the country. The Finance Minister understands that some people haven’t gotten their cheques yet. Harpauer has heard there was a glitch in the printer, but it has been fixed and the remaining cheques should be in mailboxes in the next week to ten days.
At mid-year, revenue is forecast to be $19.5-billion, up $2.4-billion from budget. Tax revenue is forecast to be up $1-billion from budget with higher Personal and Corporate income tax revenue and PST. Federal transfers are also up from budget.
Expenses are up 1.6 per cent from budget, forecast to be $18.4-billion at the end of the fiscal year, largely due to the $450-million for the $500 cheques and increases in Saskatchewan Crop Insurance Indemnities and AgriStability benefits paid out in 2021 and 2022.
Based on private sector forecasts, Saskatchewan’s real GDP is expected to grow by 5.3 per cent this year, and 1.9 per cent next year, which is the highest among the provinces for both years.
