Extraordinary firefighting costs and declining oil prices have forced Saskatchewan into a deficit after the first quarter of the fiscal year.
Finance minister Kevin Doherty last week said estimated expenses have climbed by $161 million. Revenue has dropped by $237.8 million.
The result is a forecasted $292 million deficit at this point.
However, Doherty said the government will balance the budget by the end of the year.
“This government is not going to raise taxes and we’re not going to run a deficit,” he told reporters. “We’re not going to borrow more money and place that on the backs of our children and grandchildren.”
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Premier Brad Wall instructed ministers and crown presidents at the end of June to look at potential savings. There is no hiring freeze but Doherty said vacancy management is a huge issue because government spends 75 percent of its money on human resources.
As well, some projects and initiatives will be deferred. Agricultural spending is not expected to change at this point.
The government had pegged oil prices at US$57.15 in its budget estimates but has now revised that to $49.50. Tax revenue from non-renewable resources is down considerably.
On the expense side, firefighting costs are expected to be up $100 million, while the social services and assistance costs associated with the largest evacuation in the province’s history are up $31.6 million and protection of persons and property is up $29.4 million. The latter includes provincial disaster assistance funds for flood claims, including outstanding prior-year claims.
karen.briere@producer.com
