Sask. Finance Minister Donna Harpauer. Aug. 27, 2020 (Lisa Schick/980 CJME)

By CJME Staff

Saskatchewan sees $1-billion surplus due to strong resource revenue

Aug 23, 2022 | 10:51 AM

High resource prices have brought a boost to Saskatchewan’s revenues, resulting in a surplus budget and allowing for reduction of the provincial debt as well as relief measures for residents struggling under the high cost of living.

According to the Ministry of Finance, the higher revenue from non-renewable resources means Saskatchewan is now forecasting a surplus of $1.04 billion for the first quarter, which is $1.51 billion higher than predicted in the budget.

“That means we can balance the budget, pay down debt and help Saskatchewan residents with the rising cost of living,” Finance Minister Donna Harpauer said in a statement accompanying Tuesday’s fiscal update.

Revenue from non-renewable resources increased by $1.86 billion, the finance ministry said, reflecting higher prices for oil and potash.

Income from taxes was also up by more than $500 million, which the provincial government credited to a stronger-than-expected economic recovery after the COVID-19 pandemic.

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With the province expecting revenue of $19.17 billion — more than $2 billion higher than predicted in the budget — Harpauer said Saskatchewan’s strong economy “is poised to lead the provinces in economic growth in 2022.”

Expenses are expected to total $18.13 billion, the government noted, which is more than a half-billion dollars higher than budgeted.

The big increase in money going out is largely due to an expenditure of about $450 million, which will provide every adult in the province with a $500 relief cheque this fall.

Public debt, the Ministry of Finance added, is forecast to be $1.72 billion lower than budgeted, with the surplus allowing the province to “retire up to $1 billion in existing debt.”

Saskatchewan’s real GDP is expected to grow by 4.7 per cent in 2022 and 2.5 per cent in 2023, the ministry added.

“Our economy is strong and growing,” Harpauer said.

On Tuesday, the provincial government also announced a four-point affordability plan, aiming to help with the rising cost of living through the coming relief cheques, PST adjustments, a reduction in the small business tax rate, and overall reduction of the provincial debt.