Saskatchewan’s government has released its budget for the 2016-17 fiscal year – a document that forecasts a deficit of $434 million, but doesn't include new tax increases or new taxes.
“By keeping taxes low, controlling spending and investing in much needed infrastructure projects like highways, schools and hospitals, we will help Saskatchewan's economy through a difficult year before the economic recovery which is expected next year,” Finance Minister Kevin Doherty said.
Among the assumptions included in this budget is an average price of oil of US $44.88 per barrel.
Saskatchewan's economy is expected to rebound in 2017, with GDP growth predicted to be 2.5 per cent, following a projected 0.6 per cent decline in 2016.
The budget forecasts total revenue of $14.02 billion and total expense of $14.46 billion for a projected deficit of about $434 million in 2016-17. This is largely due to a drop of nearly a billion dollars in non-renewable resource revenue.
“Clearly, a $968 million drop in resource revenue is having an effect,” Doherty said. “Our government opted for a manageable deficit in this Budget, rather than cutting funding to priority areas such as health, education, or social services.
“There are years when unforeseen events — drops in the price of oil or potash, or costly natural disasters—make it prudent to run a manageable deficit, rather than implement severe cuts to programs and services or increase the tax burden on Saskatchewan people. This is one of those years. However, we are committed to returning the Budget to balance by 2017-18.”
The budget includes $8.1 million for twinning Highway 39 from Estevan to Bienfait, and $1.3 million for continued planning for Highway 6 and 39 twinning and passing lanes from Regina to Estevan.
Next week’s edition of the Mercury will have more on this story.
