Premier Scott Moe was joined by Finance Minister Donna Harpauer on Friday to announce the preliminary revenue impacts for Saskatchewan due to the COVID-19 pandemic.
Through three separate scenarios shown in the presentation, the potential revenue decline could be anywhere from $1.3 billion to $3.3 billion.
“In the interest of being as transparent as possible with the people of Saskatchewan we have presented these scenarios today,” said Moe. “We will see what decisions are necessary as we go through the next number of weeks and months,” he added.
Harpauer said it is still difficult to forecast revenue with any degree of certainty. She added the duration and severity of the current economic environment, along with consumer and business behaviour after the crisis, will ultimately determine how large of a revenue decline the province will face.
Harpauer also said regarding the revenue impact declines, the province expects all revenue categories to see declines in 2021. “The reason we have developed these scenarios is because there is, as mentioned, still a lot of uncertainty,” said Harpauer.
Harpauer said the three scenarios proposed in the revenue impact presentation were based on a GDP of minus 4.1 per cent, minus 6.3 per cent and minus 14.9 per cent.
Additionally, the figures of a decline of $1.3 billion to $3.3 billion depend on factors including the length and severity of the COVID-19 pandemic, the duration and impact of social distancing, the recovery of oil prices and the success of government fiscal and monetary policy around the world to support the global economy.
Harpauer said at this point in the pandemic, most everything is out of the province’s control and added the responsibility they need to take is in the recovery.
“We need to be very mindful of what that recovery will be and where we need to be,” said Harpauer.
To date, Saskatchewan has 307 cases of COVID-19. The total number of recovered cases of the virus is at 228.
There are currently six people in hospital, including five receiving inpatient care and one person in intensive care.
Additionally, 22,207 COVID-19 tests have been performed in the province. Saskatchewan continues to have the second highest rate of testing per capita.
