Saskatchewan’s Minister of Finance, the Honourable Donna Harpauer, today released the provincial government’s First Quarter Financial Report for the fiscal year 2022/2023 that runs April 1st, 2022 to March 31st, 2023. As many expected, the province’s bottom line has improved dramatically because of non-renewable resource prices from oil and gas as well as potash sales
In the budget that was tabled in March of this year, the Minister had forecast a deficit of $463 million and now is forecasting a surplus of $1.043 Billion, a turnaround of $1.5 billion. Much of this change can be directly attributable to an additional $1.85 billion in non-renewable resource revenue as well as $536 million in higher tax revenue.
Expenditures are up $508 million, almost entirely due to a one-time payment of a $500 Affordability Tax Credit cheque for every citizen of Saskatchewan aged 18 years and up who has filed a Saskatchewan tax return for 2021. The goal of the payment is to assist with the rising cost of living, with cheques sent out beginning in September.
For more information, please see the 2022/23 First Quarter Financial Report.
The Minister also announced a four-point Affordability Plan to further assist the people of Saskatchewan in addressing high inflation across a number of sectors. It includes:
- The aforementioned $500 Affordability Tax Credit payment.
- The cancellation of the 6% Provincial Sales Tax (PST) being expanded to some recreational, cultural and fitness activities that was set to come into effect on October 1st.
- Extending the 0% Small Business Tax Rate reduction (retroactive to July 1st, 2022) to July 1, 2024.
- Retiring $1 billion in operating debt saving $49 million in debt servicing charges.
The 2022/23 Mid-Year Financial Report is due towards the end of November and will give an important snapshot of the government’s financial picture halfway through the current fiscal year.
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For information and insights about what these developments mean for Saskatchewan’s political landscape, please contact:
Theo Bryson – Senior Strategy Advisor
Kevin Doherty – Senior Strategy Advisor
June Draude – Senior Strategy Advisor
Tom Lukiwski – Senior Strategy Advisor
To learn more about Prairie Sky Strategy, please visit our website.