MID-YEAR REPORT SHOWS STRONG ECONOMIC PERFORMANCE CONTINUES:

Released on November 20, 1995

Finance Minister Janice MacKinnon today released the Mid-Year
Financial Report, which shows that there continues to be broadly based
growth in Saskatchewan's economy, and that the finances of the
province are on a sound foundation.

The Mid-Year Financial Report provides an update on the province's
financial and economic position mid-way through the current fiscal
year.

"I am pleased to say that the positive economic growth which our
province experienced in 1994 is continuing through 1995," MacKinnon
said. "Although severe weather caused extensive crop damage in some
areas, this year's overall crop exceeded expectations, and there has
been significant improvement in grain prices throughout 1995. The
mining and manufacturing sectors are continuing to perform well this
year, and retail sales and job growth remain strong," MacKinnon said.

"Saskatchewan is also improving its economic position relative to
other provinces. Our economy has grown faster than other provinces'
economies, and thus we are moving up the economic ladder in Canada.

"In addition, Saskatchewan's stronger than anticipated economic
performance, relative to other provinces, has meant that the federal
government's Equalization payments to Saskatchewan in 1995-96 will be
$243.9 million less than originally estimated.


"This unexpected and dramatic decline in payments from the federal
government, will be offset by revenue from our economic growth and a
one-time drawdown of $125 million from reserves.

"Overall, the single biggest threat to future budgets is the severe
cuts in federal transfer payments for health, education, and social
programs which will begin in 1996-97. These reductions, combined with
lower Equalization payments, mean that Saskatchewan people will face
difficult choices.

"But, we are in a much stronger position, financially and
economically, to deal with this significant fiscal challenge. Other
provinces, like Ontario, are still working to balance budgets and have
huge deficits at the same time as they are trying to grapple with
these federal funding cuts. In Saskatchewan, we have a growing
economy and a stable fiscal position. This means that we are better
positioned to make the difficult and necessary choices required to
take Saskatchewan into the new century with confidence," MacKinnon
said.

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For more information, contact:

Maureen MacCuish
Saskatchewan Finance
Regina
Phone: (306) 787-6673