Resource prices, tax revenue higher than what Sask. government budgeted for: finance minister | Globalnews.ca

Saskatchewan Finance Minister Donna Harpauer delivered fiscal 2021-22 year-end finances in Saskatoon on Thursday, showing a $1.47 billion deficit.

That marks a $1.14 billion improvement from the expected deficit. The fiscal year runs from April to March.

“Saskatchewan’s finances have strengthened in fiscal year 2021-22,” Harpauer told reporters.

She said the main reason for the improvement was that revenues increased substantially.

Higher potash and oil prices resulted in higher non-renewable resource revenues and higher personal, corporate and sales tax revenues than budgeted by the government.

Total revenue of $18.14 billion was $3.66 billion higher than projections included in the 2021-22 budget.

However, the government said the widespread drought had a significant impact on farm spending and health spending also rose last year due to the COVID-19 pandemic.

Harpauer added that the province’s public debt as of March 31, 2022 was about $529 million lower than they had projected in the budget.

“(The) government needed to borrow less due to the strengthening of our finances. Saskatchewan’s improvements for the fiscal year and its strong financial plan put the province back on track,” said Harpauer.

“Saskatchewan is poised to be among the nation’s leaders in economic growth in 2022, based on private sector forecasts based on high commodity prices, increased private sector investment and a return to a more normal year for agriculture”.

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Official opposition, meanwhile, called on the government to immediately deploy resource revenues to provide residents with cost-of-living relief that the NDP says is necessary.

“The year-end figures show that the government is flush with windfall resource revenue and has the fiscal capacity to provide much-needed relief,” said financial critic Trent Wotherspoon.

“The only question now is whether they care enough to give the people of Saskatchewan a break.”

The NDP is calling on the government to remove the new PST measures that were introduced in the 2022-23 budget and to provide unexpected cost-of-living rebates and fuel relief.

They also say the government should suspend the provincial fuel tax during the summer months.

After several school divisions announced their 2022-23 budgets that included canteen fees for parents as well as job cuts, the NDP is also asking the government to provide $50 million in emergency funding to boards.

However, according to Harpauer, those seeking relief will likely wait until the fall.

“We’re not going to spend what we’re not sure there won’t be,” he told reporters, adding that the government averaged oil at $77 a barrel over the past year.

“You have to average what you’re going to get throughout the year. If you get a bonus for one or two months, you don’t want to increase your spending to the level of that bonus because it may not be honored for the full 12 months.”

Harpauer said that once the government releases first-quarter budget figures in August, they will be “better positioned” to make decisions.

“I think you’re going to see decisions about what we’re going to do. We are seeing strength. Will it last 12 months? We do not know.

The full 87-page year-end report is available on the government’s website.