The forecasted financial turnaround that the Minister presented at the Q1 update back in August continues to hold as the surplus is now forecast at $1.1 Billion, up $50 million from Q1 and up significantly from the forecasted deficit of $463 million at budget time last March;
- Revenues – Non-Renewable Resource revenues ($1.4 Billion in increased revenue) and Taxation revenues ($1 billion increase from budget) continue to be very strong through the first 6 months of the fiscal year.
- Expenses – These revenues are partially offset by an additional $204 million in Crop Insurance expense and of course the $450 million cost for the one-time payment of $500 to everyone aged 18 and over who filed an income tax return in 2021, announced back in August to help ease the cost of living pressures due to high inflation.
- Debt – Public debt is expected to now be $2.1 Billion lower than was forecast at budget due to a one-time paydown of $1 billion and lower borrowing for operational needs due to the increase in revenues.
Deputy Premier Harpauer said, “Saskatchewan’s economy is performing well and is expected to lead the provinces in growth in 2022 and 2023. Employment in the first 10 months of 2022 increased by 20,400 jobs, and strong commodity prices and related increases in the value of our exports, along with a rebound in agricultural production, as well as investment growth, are factors contributing to higher economic growth forecasts at mid-year compared to budget.”
The province’s next budget is expected to be tabled in March, 2023 that will lay out the fiscal forecast and financial plan for the province for Fiscal Year 2023/24.
We’re Here to Help
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.