REGINA – Short term deficits will be longer than expected. That’s how Federal Finance Minister Bill Morneau summed up our economic outlook on Monday in Ottawa.
He announced a projected $18.4 billion deficit, nearly double the maximum deficit of $10 billion the Liberals campaigned on.
Morneau blamed global economic concerns and Conservative mismanagement for the $18 billion shortfall. He will unveil the Liberal’s first federal budget on March 22.
Despite this, stimulus programs are set to go ahead as planned.
Get daily news
“We know that infrastructure investments are an important measure that can do that. We also know that they can help us to grow the economy. We’ll have much more details in a few short weeks on March 22,” Morneau explained.
This includes $300 million coming to Saskatchewan from the Build Canada Fund, and possibly another $156 million requested to clean up abandoned oil wells.
Provincial Finance Minister Kevin Doherty said they’ll let the Liberals worry about federal finances, and Sasaktchewan will handle its own.
“I’m not going to criticize the federal finance minister or the federal government,” Doherty said.
“They’re dealing with their fiscal situation that encompasses 10 provinces and three territories.”
Saskatchewan is in a deficit of its own. Details on our financial situation will be revealed on Feb. 29, along with the Sask Party’s pre-election four year financial plan.
“We’re dealing with our situation here in the province of Saskatchewan. As I’ve said many times there’s no magic to budgeting, you have your revenue sources and you have your expenditures,” Doherty said.
Doherty maintains that the financial plan will contain the Sask Party’s vision on how the province will return to a balanced budget for the 2017/2018 fiscal year.