REGINA -- Saskatchewan is facing $319 million deficit to end 2019-20, due to the economic decline caused by the COVID-19 pandemic.
In a release, the province said its revenue declined by $490 million in the fourth quarter, in part due to a $431 million decline in net income in investment losses in the Government Business Enterprises (GBEs).
Saskatchewan saw total revenue of $14.89 billion in 2019-20, which was less than budgeted by $138 million, or 0.9 per cent. The province said this loss is a result of lower-than-expected revenue from the GBEs, non-renewable resources and taxation revenue. Those costs were partially offset by higher-than-expected transfers from the federal government and other own-source revenue.
Provincial revenues in 2019-20 were up by $386 million, compared to 2018-19.
The government’s total expense was $15.21 billion in 2019-20, which was $216 million, or 1.4 per cent higher than budgeted. Greater-than-expected education and health expenses contributed to the higher costs. Lower-than-budgeted agriculture insurance claims due to favourable crop conditions partly offset the province’s expenses.
Expenses in 2019-20 were up $437 million, or three per cent, compared to 2018-29.
“Prior to the global COVID-19 pandemic, Saskatchewan was on track for balanced budgets in 2019-20 and in the current fiscal year,” Finance Minister Donna Harpauer said.
“Our government released a budget on June 15 that meets the challenges presented by the pandemic. I am confident that as Saskatchewan’s economy recovers, our revenues will also recover and we will get back to balance in the coming years.”
