The Saskatchewan government is looking to be on track to maintain their promise of a balanced budget in 2019-20, with a projected surplus of $25.8 million at the first quarter.
This forecast of $25.8 million is $8.6 million less than the budgeted surplus of $34.4 million given in March, but Finance Minister Donna Harpauer is not concerned.
“Overall, I’m encouraged by Saskatchewan’s updated budget forecast at first quarter,” Harpauer said in a provincial press release. “In any given year there can be in-year budgetary challenges, and there can also be some up-side. Our government will continue to manage expenses carefully, invest in priorities, and keep the economy strong—providing the right balance for Saskatchewan people.”
Revenue is expected to be $15.38 billion, up $355.3 million than was budgeted. Expenses are also expected to be up $363.9 million per cent from budget, at $15.35 billion. This equates to a 2.4 per cent increase in both.
The provincial government’s report attributes the growth in revenue to positive gains from the non-renewable resource sector, including higher-than-expected potash prices and a lower exchange rate on heavy-light oil.
The increase in expenses is due to higher pension expenses and increases in federal funding for municipalities and infrastructure.
Overall, the government is seeing the provincial economy perform as predicted in the spring budget, and has seen a decrease in both public debt and unemployment numbers.
Harpauer and the provincial government see the budget as on track to be balanced with a small surplus.
“This balance allows sustained investment into the priorities of Saskatchewan people—including into health care, classrooms, and support for seniors and vulnerable families, as well as into needed infrastructure for our growing province,” said Harpauer.
