Sask. mid-year update projects $262 million deficit

REGINA – The Province of Saskatchewan has released their mid-year financial update and things aren’t looking rosy as the province is running a $262 million deficit.

Expenses at mid-year are down $62 million from the first quarter but up $99 million from budget, reflecting forest fire costs as well as “additional spending to support people who are most vulnerable and who truly need support.”

Revenue is also down $32 million from first quarter and $270 million from budget. The province is blaming this on significant decreases in non-renewable resource revenue and consumption taxes.

READ MORE: How did Sask. finances dip into the red?

The province says that they are continuing to reduce spending to offset a $400 million drop in non-renewable resource revenue.

“The continued decline in the oil price has increased the financial challenge facing the province,” Finance Minister Kevin Doherty said.

“However, by controlling government spending, we have been able to reduce the forecast deficit since first quarter by $30 million.”

The NDP criticized the deficit, saying the provincial government should have saved more money following the resource boom and increased revenue across Saskatchewan.

“But we’re not only experiencing the consequences of those bad choices, we’re now seeing the Sask. Party make even more bad choices in how they’re addressing this deficit,” NDP Deputy Leader Trent Wotherspoon said.

“They’re taking it out on everyday Saskatchewan families – the front-line health care we should be able to count on, our kids’ classrooms and our universities and colleges. They’re also going old-school and planning to sell off money-making assets like 40 liquor stores.”

The province has undergone more than $107 million in spending restraint by ministry agencies and Crown Corporations since the province’s first quarter forecast.