Sask. deficit forecast up from budget despite revenue growth
Despite a boost in revenue for 2021-22, Saskatchewan’s deficit is expected to be higher than forecast in the budget due to fiscal challenges created by the drought this past summer.
The Government of Saskatchewan presented a mid-year update to its projected financial numbers on Monday morning.
The province’s deficit is now forecast at $2.7 billion, up $97 million from the budget. That deficit figure improved $29 million from first quarter projections.
The government said drought supports for farmers offset the strong mid-year revenue growth. Total expense is forecast to rise by $2.5 billion, including $1.8 billion for crop insurance claims. The total crop indemnity is projected at $2.4 billion for 2021-22.
"The drought was unforeseen and farmers were hit hard this spring and summer," Deputy Premier and Finance Minister Donna Harpauer said.
"Our government is here to provide support to Saskatchewan people when they need it. Absent the drought, we would have seen a significant improvement from budget and a much lower deficit, based on stronger revenue across all major categories."
The higher expense forecast also includes a $250 million rise in health spending from budget due to pandemic and drug plan pressures, and $100.9 million in Protection of Persons and Property expense due to support for victims of wildfires in the spring and summer.
Revenue is projected to increase by $2.4 billion, or 16.5 per cent. The province said it saw significant increase in all revenue categories, including $668.8 million from non-renewable resources due to high potash and oil prices.
The province’s GDP is expected to grow by 3.6 per cent in 2021 – up from the budget forecast of 3.4 per cent.
CTVNews.ca Top Stories
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Powerful tornado tears across Nebraska, weather service warns of 'catastrophic' damage
Devastating tornadoes tore across parts of eastern Nebraska and northeast Texas Friday as a multi-day severe thunderstorm event ramped up in the central United States, injuring at least three people.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Trump's lawyers try to discredit testimony of prosecution's first witness in hush money trial
Donald Trump's defence team attacked the credibility Friday of the prosecution's first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican's 2016 presidential campaign.