Released on July 31, 2008
Provincial Debt Cut by Over $2 Billion Since Government Took Office
Saskatchewan's First Quarter Financial Report released today show that resource revenues continue to rise, allowing the government to significantly reduce the province's debt.
First Quarter numbers reflect a $3.1 billion or over 30 per cent increase in revenue from the province's spring budget, primarily due to higher forecasts for oil, natural gas, potash and record revenues from Crown land sales. When combined, these revenue sources account for $2.6 billion of the increase.
"This is a tremendous time of prosperity for Saskatchewan," Finance Minister Rod Gantefoer said. "World demand in the oil and potash markets has surpassed expectations resulting in higher prices. In turn, these revenue levels give our government the means to reduce debt levels by nearly one-third in less than a year."
Government will set aside almost $2.2 billion this fiscal year to reduce government total debt from $6.8 billion to $4.7 billion.
"Our revised forecast now shows that in addition to the large debt repayment, the Growth and Financial Security Fund will grow to about $3.1 billion," Gantefoer said. "This money is available to help keep our growth levels and economic momentum going strong and may be used for more infrastructure improvements or tax reductions."
The government is currently seeking advice from Saskatchewan residents about how windfall revenues should be invested. Government MLAs are consulting their constituents and feedback is being collected on the Premier's website and Government of Saskatchewan website.
To date, public opinion has largely favoured paying down government debt, investing more in infrastructure and lowering personal income taxes.
"In the spring budget, our government made a major commitment to improving Saskatchewan's infrastructure through our billion dollar ‘Ready for Growth' initiative," Gantefoer said. "Now we are making a major commitment to debt reduction and if these strong revenue forecasts continue, we hope to be able to lower taxes before too long.
"Our government will use the surplus carefully and wisely to sustain our economic momentum and to ensure all Saskatchewan people benefit from our province's growing prosperity."
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For more information, contact:
Vanessa Beaupre
Finance
Regina
Phone: 306-787-8109
Email: vgooliaff-beaupre@finance.gov.sk.ca