Just days before the provincial election campaign will be officially launched, the Saskatchewan government is projecting a $427 million deficit for this fiscal year.
That’s about $165 million larger than the mid-year forecast.
Finance minister Kevin Doherty released a budget update and four-year forecast Feb. 29.
Premier Brad Wall has already said the province will run a deficit this year and next.
Doherty said the slide in oil prices has significantly impacted revenue. However, he said the four-year forecast calls for a surplus in 2017-18.
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Revenue is down $428 million from budget overall. Non-renewable resource revenue is off $617 million due to lower oil and potash prices but partially offset by the lower Canadian dollar.
Expenses are up $7 million from mid-year and $106 million from budget due to the forest fires last summer.
Government agricultural spending is down $83.5 million from budget, thanks to lower program payments, particularly crop insurance. The province recorded its second-largest crop ever in 2015.
The economic outlook suggests that a rebound in commodity prices, a moderately strengthened dollar and a continuing strong agricultural sector will normalize the province’s economy.
Contact karen.briere@producer.com
