Sask. projects $1B surplus, will use cash to pay debt instead of further funding boosts

Saskatchewan is projecting a $1 billion surplus in the coming year and plans to spend just as much in paying down the province's debt.

Saskatchewan is projecting a $1 billion surplus in the coming year and plans to spend just as much in paying down the province's debt.

At the same time, as outlined in the provincial 2023-24 provincial budget, the Saskatchewan Party government plans to boost spending across the board, including more money health care and education.

While the government says the nearly seven per cent increases in health care and education funding amount to record spending, the province's NDP opposition argues that it falls short of what is needed — as the increases only cover the cost of inflation.

When speaking to reporters during a news conference held prior to the release of the budget, finance minister Donna Harpauer was adamant that withholding spending in favour of servicing Saskatchewan's debt is the right move.

"The question goes to why didn't we spend the billion dollars and I've spoken to this a number of times and I'm still very firm on this. We have to be very careful as a government to not take one-time revenue and incorporate it and bake it into our year-over-year operational costs," Harpauer said, pointing to the volatile nature of the resource revenue that comes from potash, uranium and oil.

"If that surplus is due to one-time revenue, be very careful because if you put it into health care, and then you say 'just kidding' the following year because the revenue isn't there," Harpauer said.

The further reduction will save the province $44 million annually in interest payments, according to the government.