Finance Minister Donna Harpauer provided the mid-year financial update for the fiscal year. Unlike updates provided earlier in the year, this one was not all doom and gloom. Unfortunately, the government is still projecting a deficit, but that deficit is not expected to be as large as originally forecasted.

Aided by higher federal transfers, higher government business net income, and better-than-expected non-renewable resource revenue, the deficit is only expected to reach $2 billion, as opposed to the forecasted $2.4 billion.

“As reflected in these latest forecasts, our government is managing the province’s finances carefully through the pandemic,” Deputy Premier and Finance Minister Donna Harpauer said.  “The mid-year update also includes $260 million of contingencies to cushion against potential pandemic-related revenue and spending shocks over the remainder of the fiscal year.”

Government Expense is forecast to be $16.2 billion, an increase of $122.0 million from what was budgeted. The increases are seen across health, education, municipal, and tourism sectors. The increases are partly offset by lower-than-budgeted pension expense and crop insurance claims expense. 

According to the report, the commitments created by the October election are totaling almost $92 million.

Despite the deficit, the province is still in a strong position, especially when compared with the other Canadian provinces.  Saskatchewan’s net debt-to-GDP ratio at March 31, 2021, is now estimated at 19.6 per cent and is expected to be one of the lowest among Canadian provinces this year.

“Saskatchewan’s economy has performed better than originally anticipated in the June 2020 budget,” Harpauer said.  “Real GDP is forecast to decline 5.0 per cent, compared to a decline of 6.3 per cent forecast at budget.  Saskatchewan’s unemployment rate was the lowest in Canada in October and total employment, on an unadjusted basis, is nearing pre-pandemic levels.  As a result, our planned path to balance in 2024-25 is unchanged.”