Saskatchewan ends fiscal year with $182M surplus, below original forecast

Saskatchewan Minister of Finance Donna Harpauer speaks during a press conference in Regina, on Wednesday, March 20, 2024. The Saskatchewan government says it ended last fiscal year with a $182-million surplus. THE CANADIAN PRESS/Heywood Yu

REGINA — The Saskatchewan government ended the last fiscal year with a $182-million surplus, lower than the original forecast but higher than other predictions.

Finance Minister Donna Harpauer said Thursday that increased tax revenues and a strong economy helped the province avoid a deficit.

Saskatchewan initially forecasted a $1-billion surplus. But larger expenses on agriculture reduced that figure, as the province had to spend more on crop insurance payouts to cover last year's drought.

Non-cash adjustments related to inflation and pensions also caused expenses to increase, Harpauer added.

"I would love the $1 billion, but we did have unexpected revenues, as well as unexpected pressures," she said at a news conference.

"What we're projecting now is what would be considered more the average normal."

Before coming out with the surplus, Harpauer said she thought Saskatchewan was going to be in the red. A $482.5-million deficit was projected earlier this year.

What largely saved the balance sheet was $682 million more in corporate taxes, she said.

"The (Canada Revenue Agency) said we owe you more than what you anticipated," Harpauer said.

"Investments did better in our Crown corporations. There was an improvement in liquor and gaming."

The federal government also returned $432 million to Saskatchewan for the province's industrial carbon pricing program. Some of those dollars have been promised for a technology fund for heavy polluters to reduce emissions, while the rest are meant to keep power rates low.

Without that money, Harpauer said the province would have been in a deficit.

"It was a revenue that came in that was going to the government. It is how we account for revenues that are outstanding," Harpauer said.

"The largest, unexpected revenue was the corporate income tax."

Saskatchewan's net debt is $14.5 billion, higher than what was originally forecasted. Total public debt is $31.6 billion.

Harpauer said Saskatchewan has the second lowest net debt-to-GDP ratio in Canada and the second highest credit rating.

The Opposition NDP slammed Premier Scott Moe's Saskatchewan Party government for collecting more taxes and fees during an affordability crisis.

"Scott Moe is trying to balance the budget before an election on the backs of Saskatchewan taxpayers. It’s coming out of your pocket,” finance critic Trent Wotherspoon said in a news release.

"It’s smoke and mirrors, and Saskatchewan people are picking up the tab.”

Saskatchewan voters are expected to go to the polls in October.

This report by The Canadian Press was first published June 27, 2024.

Jeremy Simes, The Canadian Press