Finance Minister, Donna Harpauer, released the Saskatchewan Government’s 2023-24 Mid-Year Financial Report earlier today.
The Report forecasts a $250 million deficit in the current fiscal year, down $736 million from the first quarter projection. The provincial government had originally forecast a surplus of more than $1 billion.
The Government says the change comes from lower potash prices, and an unforeseen drought that hit most areas of the province, resulting in higher than anticipated crop insurance payouts.
The Report also highlights that the economy is forecasted to hit the second highest growth rate among all provinces, the labour market continues to set records, and several key economic indicators, such as the 4.4 percent unemployment rate, are better than historical averages.
The government is currently going through the Treasury Board budgeting process, where new expenses are debated in preparation for the next provincial budget in the spring.
As we approach the upcoming election year, it is anticipated there will be ongoing investments in key areas of the government’s focus, namely healthcare, safety, and affordability. However, the question remains: will this new financial forecast lead to a shift in priorities? Only time will tell.
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For more information and insights about what these developments mean for the political landscape in Saskatchewan, please reach out to our experts:
Theo Bryson – Senior Strategy Advisor
Kevin Doherty – Vice President
Tom Lukiwski – Senior Strategy Advisor
Bronte Prosser – Strategy Advisor
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