Released on November 17, 1999
Finance Minister Eric Cline today released Saskatchewan's 1999-2000 Mid-YearFinancial Report, showing a revised budget surplus for the current fiscal year
of $18.2 million, compared to the budget estimate of $8.3 million.
"We have had a number of pressures to address on the spending side, primarily
in the areas of health care and forest fires," Cline said. "However, continued
strength in the economy will allow us to keep the budget balanced in spite of
these pressures.
Overall, spending is up $129 million compared to the budget estimate, primarily
due to higher forest fire suppression costs, wage settlements in the health
care sector and increased use of insured health services. Interest expense is
down $12 million, primarily reflecting a change in the mix of debt financing
activities, and total debt is expected to be $170 million lower than the budget
estimate.
The higher expense is off-set by a net increase in revenues of $127 million.
Factors affecting total revenues include:
increased provincial revenues of $346 million;
a $119 million reduction in federal equalization payments;
the government's decision to withdraw the entire Canada Health and
Social Transfer (CHST) Supplement Trust, adding $50 million to the
current year; and,
a reduction in the planned Saskatchewan Liquor and Gaming Authority
(SLGA) draw down of $150 million.
Cline said he was pleased with continued growth of the Saskatchewan economy,
which has helped improve the province's financial position.
"Oil prices have recovered and sales of non-renewable resources are strong,"
Cline said. "In addition, our provincial economy is more diverse, confidence
is improving and more investment is being attracted to Saskatchewan.
"Farming is the one difficult area in an otherwise bright economic picture.
Producers have been hit hard by low commodity prices, brought on by US and
European subsidies. Farmer's incomes are at their lowest levels since the
1930s."
Economic highlights include:
484,000 people working in Saskatchewan in October - 5,400 more than in
the same month a year ago;
retail sales improving with a 2.2 per cent increase in August 1999
compared to the previous year;
gas drilling up 75.4 per cent and oil drilling up 7.0 per cent, January
- October 15, compared to the same period last year;
value of oil sales up 26.6 per cent, natural gas sales up 36.3 per cent
and potash sales up 2.9 per cent, January - July, compared to last
year; and,
housing starts up 9.4 per cent overall and 38.3 per cent in rural
areas, January - September, compared to the same period in 1998.
"Saskatchewan people know there are many choices to be made in the months
ahead," Cline said. "We will be seeking to achieve the best possible balance
among priorities - tax cuts, continued debt repayment and enhancements to
priority public services - to support even stronger growth, prosperity and
opportunities for all Saskatchewan people in the new millennium."
-30-
For more information, contact::
Sandra Lodoen
Saskatchewan Finance
Regina
Phone: (306) 787-6578