Premier Brad Wall says Saskatchewan deficit will be higher than forecast

REGINA – Saskatchewan Premier Brad Wall says the deficit in the upcoming provincial budget could be higher than initially forecast.

The government was hoping to get the deficit down to about $260 million in the budget that is to be tabled June 1.

Wall now says he thinks it’s going to be higher than that because of significant softening of resource revenues, including potash prices.

The premier says there’s no expectation of stronger uranium prices either.

Wall points out, though that the deficit won’t be “nearly the scale” of deficits seen in Alberta or Newfoundland and Labrador, which are also feeling hurting from lower oil prices.

He also believes that resource prices have hit the bottom of the barrel, and if they haven’t already, they’re very close.

“I think we’ve seen that in the price of West Texas and oil prices. They’re slowly starting to move away from the lows of $30 per barrel, and now up over $40,” Wall explained.

“It can go back and forth so we shouldn’t get our hopes up too much, but I do think that’s the case.”

The Saskatchewan government was projecting a $427-million deficit for the fiscal year that ended March 31.