Sask. projects $463M deficit, finance minister says government surprised by quick economic rebound
CBC
Saskatchewan's Finance Minister Donna Harpauer says the province is "back on track," forecasting a $463 million deficit for 2022-23.
The projection is a far cry from the $2.6 billion deficit forecast from 2021-22. It is also lower than last year's projection of a $1.7 billion deficit for 2022-23.
"We are seeing strong economic growth and job creation as we come out of the pandemic and as a result, the province's financial outlook has improved significantly," Harpauer said.
The finance minister says she is sticking to a plan to return to balance by 2026-27.
Provincial revenues are expected to rise behind high demand for potash and oil. The government is projecting $2.9 billion in non-renewable resource revenue, up from $1.6 billion last year.
Overall revenues are forecast at $17.2 billion, up $2.7 billion from last year.
"While volatile world events have made commodity prices difficult to forecast, as always our revenue forecasts are based on cautious oil price projections," Harpauer said.
"It's too soon to tell if oil prices will remain high for an extended period and what impact that could have on revenues."
Harpauer said Wednesday the evolving situation in Ukraine and increases in inflation are going to be monitored closely.
"The risk definitely in this budget and for all of us going forward is going to be how high will inflation go due to circumstances, both with the pressure spending through the pandemic as well as global issues," she said.
"There is no doubt that the political climate due to what's happening in Ukraine is a risk. Disruptions in the supply chain, which were already there are being even more accelerated due to the war."
Overall, Harpauer told reporters the budget discussions were far more pleasant because of economic conditions.
"The surprise was how quickly our economy was recovering. It was actually positive experience because our revenues are strengthening that we didn't anticipate a year ago."
The government based the number's in Wednesday's budget on the following predictions:
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