REGINA – Volatile energy prices and natural disasters are being blamed for pushing Saskatchewan into a forecast deficit of $292 million.
Finance Minister Kevin Doherty released the 2015-16 first quarter financial report on Monday, pointing to declining oil prices and the northern Saskatchewan wild fires as factors in decreased revenue and increased expenses.
“Lower oil prices combined with an unprecedented number of forest fires and the largest evacuation in Saskatchewan’s history are putting pressure on the province’s finances,” Doherty said.
Total revenue for 2015-16 is now forecast to be $14.04 billion – down $237.8 million from original budget estimates. Total expenses are now forecast $14.33 billion, up $161 million from the budget.
The province now has a projected deficit of $292 million for the fiscal year.
“At the same time, our diversified economy continues to show strength in other areas,” Doherty said. “Our population continues to grow, our unemployment rate is the lowest among provinces, and we continue to show the strongest growth in wholesale trade in Canada.”
READ MORE: Saskatchewan budget holds line on taxes, but peels back incentives
In an effort to shore up the numbers the province hopes to reduce spending through staffing restraint and other operating reductions. The province will also defer projects and initiatives where possible.
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