Released on November 30, 2000
Temporary windfall revenues from the oil and gas sector bring the province'sprojected surplus to $370 million for this fiscal year.
This projected surplus paves the way for an additional $150 million investment
in Saskatchewan's roads and highways over the next three years. Finance
Minister Eric Cline announced the additional highways investment upon releasing
the 2000-2001 Mid Year Financial Report today.
"Almost half of this year's surplus will be spent on fixing Saskatchewan roads
and highways" Cline said. "Better roads mean more economic growth and
opportunity. We are making an additional $150 million dollar investment in
Saskatchewan's future."
Cline noted that the projected $370 million surplus also includes $63 million
from the Canada Health and Social Transfer (CHST) Supplement and is already
allocated to health and post-secondary education. Use of the remaining funds
will be considered during the Budget development process.
"We will be looking for ways to turn this short-term revenue bonus into long-
term benefits for Saskatchewan people, as we are doing with the $150 million
investment in highways," Cline said.
Some of the factors affecting total revenues in 2000-01 include:
- an increase of $327.6 million in oil revenue;
- an increase of $86.1 million in natural gas revenue;
- the government's decision to take Saskatchewan's entire allotment of
the 2000 CHST Supplement Trust in 2000-01 instead of over a four year
period, adding $63 million to the current year; and
- a $49.8 million reduction in federal equalization payments.
Government spending is expected to be up $75.4 million compared to the budget
estimate, with major increases concentrated in health and highways.
Cline pointed to continued economic strength and diversity as evidence that
Saskatchewan's plan for growth and opportunity is working. Economic highlights
include:
- the creation of more than 6,700 jobs;
- retail sales growth of 6.1 per cent through the first nine months of
2000, nearly double the projection in the Budget;
- a 115.9 per cent increase in the number of oil wells drilled and 19.3
per cent increase in the number of natural gas wells drilled, January-
September, compared to the same period last year;
- a 16.9 per cent increase in manufacturing shipments; and,
- a 31 per cent increase in the value of international exports, January-
September, compared to the same period last year.
"Saskatchewan people have much to look forward to," Cline said. "The next
reduction in provincial income tax is just four weeks away and will see the
elimination of the Flat Tax and provincial surtaxes, as well as higher personal
credits. Our debt reduction plan is ahead of schedule. And, we will use this
temporary increase in oil and gas revenues to produce significant, long-term
benefits for Saskatchewan people and the economy."
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For more information, contact:
Sandra Lodoen
Saskatchewan Finance
Regina
Phone: (306) 787-6578
Note: The Mid Year Financial Report is available on the Saskatchewan Finance
web-site at www.gov.sk.ca/finance