The Saskatchewan government expects a $1.1 billion surplus for 2022-23, up by $50.1 million since the first quarter forecast..Deputy Premier and Finance Minister Donna Harpauer praised the robust economy and the hardworking Saskatchewan people..“Our province’s strong economy and resources that belong to all Saskatchewan people are contributing to the province’s bottom line,” Harpauer told the media. .READ MORE Saskatchewan announces a budget surplus, gives $500 to residents, pays down debt.The government revenues are up because of high oil and potash prices, and higher personal taxes due to low unemployment.. Financial Tech Briefing .“Revenue is forecast to be up from budget, largely the result of high potash and oil prices, as well as higher taxation revenue which reflects solid economic growth,” said Harpauer..Harpauer warned “many factors” affect oil prices such as President Biden releasing oil from their reserve and the Middle East producers changing their output, which makes the oil price more volatile than potash..The government lowered the oil and potash price for the second quarter by $6.5 per barrel compared to the first quarter..The higher revenue allows the government to retire up to $1 billion in debt and reduce government borrowing as well as send one-time Saskatchewan Affordability Tax Credit payments of $500 to anyone 18 and older who filed a Saskatchewan 2021 tax return..“Using higher-than-expected revenue to help people and businesses address higher costs due to inflation, while reducing the province’s debt, is growth that works for everyone,” said Harpauer..READ MORE Dead people get $500 ‘affordability cheques’ in Sask.The last time Saskatchewan had a surplus of more than $1 billion was 2008-09 when it was $2.87 billion..Harpauer said the Saskatchewan economy is leading the provinces in 2022 and projected to continue in 2023..Saskatchewan’s real Gross Domestic Product (GDP) is forecasted to grow by 5.3% in 2022 and slow to 1.9% in 2023..“Saskatchewan’s economy is performing well and is expected to lead the provinces in growth in 2022 and 2023,” said Harpauer..“Saskatchewan is on track. International goods exports, investment in building construction, growth in wholesale trade, and in manufacturing sales are all among the highest across the provinces so far in 2022.”.The Saskatchewan economy added more than 20,000 jobs in the first 10 months of the year.. Trent Wotherspoon .“Employment in the first 10 months of 2022 increased by 20,400 jobs, and strong commodity prices and related increases in the value of our exports, along with a rebound in agricultural production, as well as investment growth, are factors contributing to higher economic growth forecasts at mid-year compared to budget,” said Harpauer..The NDP Finance Critic Trent Wotherspoon called the Saskatchewan government “fiscally illiterate” as they could use the surplus to scrap the utility hikes and invest in healthcare and education. .Harpauer said there is no reason to scrap the utility hikes as “Saskatchewan has the lowest utility bundle in Canada.”.Harpauer added they should not add the surplus money to operating budgets, as there is no guarantee the surplus would continue indefinitely..“Surpluses are used for capital projects such as a bridge, reduce debt, and save the money. Not operational increases,” said Harpauer..“Resource revenues go up and down, and I’d be shocked if they didn’t go down.”.Saskatchewan has one of the lowest debt-to-GDP ratios in Canada, which is expected to be 14.6% compared to the 19% projected in the budget..Saskatchewan’s credit rating continues to be the second-highest among all the provinces.
