Saskatchewan budget 2016-17 shows deficit of $434 million
It is no surprise Saskatchewan’s financial picture isn’t rosy.
The province is in deficit by $434 million, and while it insists it will get back to balance within two years, it will continue to spend more than it is taking in. The government is forecasting revenues of just over $14.02 billion with expenditures of $14.46 billion. The deficit is attributed to a $986 million drop in resource revenue from falling oil and potash prices.
Finance Minister Kevin Doherty insists this is a manageable deficit and the spending increases are focused on areas that will keep the economy strong through challenging times.
“We didn’t think it would be prudent at this point in time given the situation in the economy to pull back spending dramatically which would result in perhaps the layoffs of individuals that work in government, our third party sector, closing facilities,” Doherty said.