Saskatchewan is running a deficit after the first quarter of fiscal 2015-16 due to forest fires and declining oil prices.
Finance minister Kevin Doherty released the numbers today, saying, “the government will work hard to bring the province’s finances back to balance by the end of the year through careful management and restraint measures.”
Unprecedented forest fires and the volatile oil prices have taken a toll on the books and the projected deficit is currently $292 million.
Total revenue is now forecast at $14.04 billion, down $237.8 million from budget, while expenses are forecast at $14.33 billion, up $161 million. The government has lowered its forecast price for oil to less than $49.50 per barrel from the $57.15 used in the budget estimates.
The government plans to reduce discretionary spending through operating reductions such as hiring restraints and contract savings. It will also defer projects and initiatives where possible and work with third-party partners to reduce discretionary spending.
