Saskatchewan ends the fiscal year with a surplus of $182 million, below the original forecast

REGINA — The Saskatchewan government ended the last fiscal year with a surplus of $182 million, lower than originally forecast but higher than other projections.

Finance Minister Donna Harpauer said Thursday that strong tax revenue and a strong economy have helped the province avoid a deficit.

Saskatchewan originally forecast a $1 billion surplus. But higher spending on agriculture reduced that figure as the province had to spend more on crop insurance payments to cover last year’s drought.

Non-monetary adjustments related to inflation and pensions also drove spending higher, Harpauer added.

“I would like $1 billion, but we’ve had windfalls as well as unexpected pressures,” she told a news conference.

“What we’re projecting now is what would be considered more average normal.”

Before coming out with the surplus, Harpauer said he thought Saskatchewan would be in the red. A deficit of $482.5 million was projected earlier this year.

What largely saved the balance sheet was $682 million more in corporate taxes, she said.

“(The Canada Revenue Agency) said we owe you more than you anticipated,” Harpauer said.

“Investments have done better in our crown corporations. There has been an improvement in liquor and gambling.”

The federal government also returned $432 million to Saskatchewan for the province’s industrial carbon pricing program. Some of those dollars have been pledged to a technology fund for big polluters to cut emissions, while the rest are meant to keep energy rates low.

Without that money, Harpauer said the province would have been in a deficit.

“It was revenue that came in and was directed to the government. That’s how we account for revenue that’s outstanding,” Harpauer said.

“The biggest windfall was the corporate tax.”

Saskatchewan’s net debt is $14.5 billion, higher than originally estimated. The total public debt is $31.6 billion.

Harpauer said Saskatchewan has the second-lowest net debt-to-GDP ratio in Canada and the second-highest credit rating.

The opposition NDP criticized Premier Scott Moe’s Saskatchewan Party government for collecting more taxes and fees during an affordability crisis.

“Scott Moe is trying to balance the budget before the election on the backs of Saskatchewan taxpayers. It comes out of your pocket,” financial critic Trent Wotherspoon said in a press release.

“It’s smoke and mirrors and the people of Saskatchewan are raising the bar.”

Saskatchewan voters are expected to go to the polls in October.

This report by The Canadian Press was first published on June 27, 2024.

Jeremy Simes, Canadian Press