Released on February 26, 2007
The Province released its Third Quarter Report today, demonstrating further financial improvement since mid-year and increased spending on priorities including affordable housing, education and training.
Overall, provincial revenue is up $195 million from mid-year. The improvement is mainly due to higher tax revenue; primarily corporate tax revenue.
“Saskatchewan’s strong economy is enabling us to address priority issues and build a better future,” Finance Minister Andrew Thomson said.
Spending is forecast at $7.68 billion, an increase of $206.3 million from mid-year. Spending increases over mid-year primarily address priority areas and pressures:
- Community Resources - $60.7 million to fund an affordable housing initiative through Saskatchewan Housing Corporation and a capital grant for an on-reserve First Nations group home.
- Advanced Education and Employment - $17 million to redevelop part of Saskatoon’s Mount Royal Collegiate into a post-secondary training facility in partnership with the school board and several training institutions.
- Health - $8 million to fund a community service centre in Saskatoon, Station 20 West, and $9 million for Regional Health Authorities operating pressures.
- Learning - $15.2 million due to grant funding to work with multiple partners to develop a multi-service community centre and training facility in North Central Regina and to develop a new model to better engage youth in the labour market.
- Agriculture and Food - $37.4 million due to additional funding under the Agricultural Policy Framework (APF) agreement and funding the Saskatchewan Specified Risk Material Management program.
- Teachers’ Pensions and Benefits - $24 million in increased Government contributions to pension plans, due to fewer teachers retiring than projected.
- Corrections and Public Safety - $20.2 million primarily due to the estimated cost of maintaining services at correctional centres during the SGEU strike, partially offset by salary savings – (net cost, about $13 million).
As a result of these changes, the forecast GRF surplus is reduced by $29.2 million from mid-year to $5.3 million.
Government debt is now forecast to be $7.3 billion at year-end. However, the debt-to-GDP ratio continues to decline, falling to 16.1 per cent in 2006-07. This is down from 16.8 per cent the previous year, and represents the lowest debt-to-GDP ratio in two decades.
“As we prepare the 2007-08 Provincial Budget, we will continue to carefully balance the needs and priorities of Saskatchewan people to ensure they benefit from the province’s strong and growing economy,” Thomson said.
Copies of the Third Quarter Report are available online at: http://www.gov.sk.ca/finance/QuarterReports/thirdquarter.htm.
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For more information, contact:
Debbie Clark
Finance
Regina
Phone: 306-787-8109
Email: dclark@finance.gov.sk.ca