REGINA – Despite the falling price of oil, the Saskatchewan Government insists their budget remains on track to be balanced.
The Province released their mid-year report card for 2014-15, projecting a year-end surplus of $70.9 million.
“While the price of oil has fallen in recent weeks, it remained high for the first few months of the fiscal year, so overall, resource revenues are still projected to be ahead of budget this year,” Finance Minister Ken Krawetz said.
“However, it now looks like we will start the 2015-16 Budget year with a lower oil price, which means our government will need to carefully manage spending,” he explained. “The revenue for oil is based on 365 days and we still have four months to go.”
Krawetz added that the Saskatchewan economy remains strong despite the fact that oil prices keep falling.
“Right now, Saskatchewan has the strongest job growth and lowest unemployment rate in Canada,” Krawetz said.
“Most of the new jobs are not in the resource sector. They are in other areas, which shows the importance of a strong, diversified economy.”
Total revenue for the province is now projected to be at $14.199 billion, up $126.4 million from budget.
Projected revenue from non-renewable resources is up $59.5 million since the budget, and higher potash revenue and crown land sales are offsetting the decrease in oil prices.
The deputy leader of the NDP, Trent Wotherspoon said he’s concerned the province is being overly optimistic regarding the price of oil.
“I think in Alberta for example of a few dollars less than we are is a more reasonable approach and certainly it does stand out as a place where government should be more cautious,” he added.
Wotherspoon added the mid-year results display that the province really doesn’t recognize the cost of living pressure on Saskatchewan families.
“I noted that they are actually accounting for 185 million dollars out of the crown’s, out of the SaskPower and insurance companies, that Saskatchewan people pay for,” he explained. “Those are big dollars. Those are paid for by Saskatchewan people and I think right now those big increases we’ve seen to power bills aren’t necessarily something that should be placed as a pressure on Saskatchewan households.”
Total expenses are now projected at $14.29 billion, up $126.9 million. Most of the increase in expenses is related to the flooding the province endured last spring.
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