By CJME News

Provincial financial update shows deficit down, expenses up

Nov 29, 2018 | 10:55 AM

The deficit is down but expenses are up in the mid-year financial report released Thursday by the province.

The Saskatchewan Government said the predicted deficit is $348.3 million, which is $17 million lower than what was initially projected at budget time last spring.

The province credits the improvement in the financial picture to higher than expected resource revenue and an increase in net income from government enterprises.

“While we are on course, there is still work to do,” Finance Minister Donna Harpauer said in a news release.  “We continue to manage spending carefully, invest in priorities for Saskatchewan people, shift from our reliance on volatile resource revenue and help keep our economy strong.”

Government spending is expected to be up by $121.1 million with nearly half of that increase going into pensions.

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Expenses were also up for health services, child and family services and fighting forest fires.

Government business enterprises are now forecasting lower debt, which brings overall provincial debt to about $19.7 billion by March 2019. That’s $251.6 million less than what the province planned for last budget.

Harpauer said most of that public debt is due to infrastructure for Crown corporations or funding for the Saskatchewan Builds Capital Plan.

“Our infrastructure needs are significant and support a growing economy,” Harpauer said.

Overall, the province is calling the financial outlook an improvement, supporting the government’s plan to balance the books within the next two years.