Saskatchewan expects a $485.5 million surplus in the first quarter of 2023..The goal to pay off up to $1 billion of provincial debt is still going ahead as planned..The surplus is lower than the expected $532 million as initially budgeted. .The government said Tuesday it was due to increased costs related to pensions, as well as money spent on dealing with wildfires and evacuating people affected by them..In the first quarter, the natural resources revenue was below the forecasted amount in the budget.."Saskatchewan's finances continue to be in a strong position, with a substantial surplus," said Donna Harpauer, Minister of Finance and deputy premier. ."The forecast, however, clearly demonstrates the need to be prudent and manage spending carefully, as resource revenue is volatile and forecasts can change quickly due to global impacts on prices and production.”.In the first quarter, they expected to make $19.6 billion, which is $123.7 million less than initially planned. This 0.6% drop is mainly because they expect to make $528.9 million less from non-renewable resources such as potash and oil, mainly due to the lower prices than initially forecasted for these resources..The drop in revenue made from resources such as potash and oil is “largely offset” by gaining an extra $405.2 million from taxes. One of the reasons they are making more in taxes is because people are buying more things, which increases the money generated from the Provincial Sales Tax..They expect to spend $19.1 billion in the first quarter. This is $408.2 million more than initially budgeted, which is an increase of 2.2%..The reason for spending additional tax dollars is mainly because of a $317.2 million increase in education, general government and finance charges. A big part of this increase is because of a non-cash expense related to pensions due to “actuarial adjustments.”.The extra spending should be $89.0 million in the first quarter, mostly for fighting wildfires and evacuating people affected by them. This contributes to the higher spending forecast.."We will continue to pay down operating debt as planned. We're able to do so because higher opening cash balances due to a strong year-end in 2022/23 have offset the drop in the projected surplus," said Harpauer.."Sticking with our debt reduction plan is important because paying down up to $1 billion in operating debt this fiscal year, combined with $1.5 billion in debt retirement last fiscal year, is resulting in projected annualized interest savings of $110 million, savings that go directly into supporting priority programs, services and infrastructure for Saskatchewan people.”.Saskatchewan is expected to have a net debt-to-GDP ratio of 13.4% by the end of the 2023/24 budget year. This is the second-best ranking among all the provinces..Experts in the private sector predict Saskatchewan's economy will grow by 1.8% in 2023, making it the second-fastest growth among the provinces. .For 2024, the economy is expected to grow by 1.2%, which will be the third-fastest growth rate among the provinces.
