There appears to have been a dramatic turn-around in Saskatchewan’s finances. The budget for 2022-23 showed an operating deficit of $463 million. The Government of Saskatchewan released its Public Accounts 2022-23 Volume 1, today which shows a $1.58 billion surplus achieved at year-end of 2022-23. The government attributes the rosier financial picture mainly to high oil and potash prices as well as higher Corporation Income Tax (CIT), Personal Income Tax (PIT) and Provincial Sales Tax (PST) revenue in 2022-23. That’s a $2.04 billion improvement over the budget while the government said the $1.58-billion surplus allowed it to pay off $1.5 billion of the provincial operating debt, saving $66 million per year in estimated future interest costs.
Non-renewable resource revenue saw a 58.2 per cent increase at $4.60 billion in 2022-23, compared to the forecast at budget, fueled by higher potash and oil and gas prices. Personal Income Tax, Corporation Income Tax and Provincial Sales Tax also generated taxation revenue of $9.81 billion in 2022-23 which was up $1.72 billion, or 21.2 per cent from budget.
In a news release, Finance Minister Donna Harpauer said, “Saskatchewan led the country with 5.7 per cent GDP growth in 2022 and is experiencing continued economic growth so far in 2023.” The government said the revenue increases were partially offset by a decrease in net income from Government Business Enterprises, caused by increased costs for power generation and a decline in investment returns.
Total expenses for the year were $1.39 billion higher than forecast in the budget, at $19 billion. The report points to agriculture expense, which was impacted as drought conditions, particularly in the southwest, significantly improved in parts of the province resulting in crop insurance payouts lower than the prior year but greater than what was budgeted. And those $500 affordability cheques everyone received cost $422.7 million.
In reaction to the government’s announcement about an almost $1.6 billion surplus at the end of the fiscal year, the provincial NDP says even through there were windfall revenues, Saskatchewan people are stick with new taxes and fee hikes and higher bills, making the cost-of-living increases worse.
Finance Critis Trent Wotherspoon says, “”Compared to every other province, Saskatchewan people are facing the most stress and hardship with their finances, and – inexcusably – Scott Moe chose to make life more expensive with higher power and energy bills and 32 new taxes and fees at a time when people needed and deserved lasting cost-of-living relief.”
