Agricultural drought support has pushed Saskatchewan’s projected deficit to $126.5 million, according to a first quarter update from the finance minister.
The province has committed more than $700 million on drought spending.
Finance minister Donna Harpauer said that will be offset by some unexpected higher revenue.
Read Also
Petition launched over grazing lease controversy
Battle continues between the need for generation of tax revenue from irrigation and the preservation of native grasslands in southern Alberta rural municipality.
“Higher oil and potash prices and increased federal transfers have helped to combat the increase in the projected deficit,” she said.
Total expenses are up about $884 million, with $707 million of that due to agricultural costs. This includes $588 million for crop insurance and $119 million for livestock producers to maintain breeding stock and address higher costs.
The total crop insurance indemnity is now $1.1 billion for the year.
On the revenue side, the province expects $360 million in higher non-renewable resources and $401 million in increased federal transfers.
Contact karen.briere@producer.com
