POSITIVE THIRD QUARTER RESULTS WILL SUPPORT GOVERNMENT PROMISES

Released on March 5, 2008

Gantefoer to Deliver new Government's First Budget March 19

Saskatchewan's Third Quarter Financial Report released today showed continued strong financial growth since mid-year, giving government the means to deliver on key promises such as addressing the provincial nursing shortage.

Overall, provincial revenue is up $287 million from mid-year to $9.4 billion. The improvement is mainly due to higher tax revenue of $130.6 million; with corporate and personal income taxes up significantly. Resource revenues also climbed by $117.3 million, primarily due to higher-than-anticipated Crown land sales in February.

"This is a great time to call Saskatchewan home as our economy is healthy and thriving," Finance Minister Rod Gantefoer said. "We are working extremely hard to keep the momentum going to provide opportunities for everyone."

Spending is forecast at $8.2 billion, an increase of $135.6 million from mid-year. Spending increases over mid-year primarily address priority areas and pressures:

• Health will receive $60 million to establish a nursing recruitment fund.
• Education receives an injection of $16.3 million for three education capital projects in Saskatoon ($13.1 million) as well as revised education property tax relief costs.
• The Public Service Commission receives $15 million in one-time funding to settle a lawsuit involving non-permanent government employees unaware of their pension options between 1981 and 1999.
• Agriculture is up $14.5 million due to cattle and hog loan programs.
• Corrections, Public Safety and Policing (CPSP) and the Ministry of Environment will each receive a portion of $12.3 million in total for the flooding damage that occurred at Fishing and Waldsea Lakes.
• Health will also receive $5 million for the Health Quality Council to improve patient care.

At the end of the third quarter, the Province's revenues are up $1.5 billion from budget while expenses have increased by $382 million. The combined Fiscal Stabilization Fund (FSF) and Saskatchewan Infrastructure Find (SIF) balance is forecast to be over $1.3 Billion, which is $900 million more than anticipated in the 2007-08 Budget.


Gantefoer also announced that the new government's first budget will be delivered on March 19.

"This budget will focus on keeping our election promises and making sure Saskatchewan is ready for growth," Gantefoer said. "That means addressing the deficit in our provincial infrastructure by investing in our schools, hospitals and highways. Saskatchewan must be ready so we can avoid the problems of rapid growth we have seen in other places like Alberta."

Copies of the Third Quarter Financial Report are available online at http://www.gov.sk.ca/finance under the "Publications" tab.

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For more information, contact:

Vanessa Beaupre
Finance
Regina
Phone: 306-787-8109
Email: vgooliaff-beaupre@finance.gov.sk.ca