Updated: Saskatchewan still on track for budget surplus

REGINA – The Government of Saskatchewan has released its mid-year report showing the province remains on track to balance its books in 2013-14, with surpluses projected for both the General Revenue Fund (GRF) and Summary Financial Statement.

“Saskatchewan continues to enjoy a record population growth, the lowest unemployment rate in Canada and the strongest employment and earnings growth in the country,” said Finance Minister Ken Krawetz.

The report released on Wednesday projects Saskatchewan will finish the year with a $22.8 million pre-transfer surplus in the GRF and $677.7 million in the Growth and Financial Security Fund.

“While we’re confident about what’s occurring in the province of Saskatchewan, there are some things outside of Saskatchewan, outside of Canada that might mess up this budget, ”said Krawetz.

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Savings are also being attributed to reductions in some ministries, with the biggest drop ($48 million) coming from health spending.

The NDP said the extra money should be reallocated where it’s needed.

“We know we have an emergency room here in Regina that’s closed at the Pasqua Hospital,” said NDP finance critic Trent Wotherspoon. “The minister might be able to write this off as some sort of LEAN exercise but LEAN is also supposed to provide better results.”

Volatility in potash revenue was partially offset this year by increased oil revenue but will result in a $33.9 million GRF decrease from budget.

Disaster assistance plus increased funding for the Saskatchewan Assured Income for Disability program are the main areas of higher spending, but the government said most other ministries and agencies are holding steady or reducing costs.

“In other words, increased spending is almost entirely for those affected by flooding and for persons with disabilities,” Krawetz said.  “Maintaining a balanced budget in 2013-14 and beyond remains a priority but our government will always be there for people in need.”

Also in the report, crown debt is up, mainly due to new infrastructure projects from SaskPower.

Economic growth is also expected to increase by 3.6 per cent in 2013, mainly because of record crop production.