PUBLIC ACCOUNTS SHOW SASKATCHEWAN’S FINANCIAL PICTURE IMPROVING

Released on June 24, 2010

The 2009-10 Public Accounts show Saskatchewan's financial picture is improving, ending the year with a solid final quarter.

Saskatchewan saw an improvement of $253.3 million since the Third Quarter Financial Report released in early March. This includes $152 million in additional revenue mainly from stronger oil revenues, $100.4 million in reduced spending in ministries, and a $0.9 million net gain on commercial activities recorded at year end.

"Saskatchewan experienced a turbulent year financially, but managed to see the fiscal situation improve steadily in the final months of the year," Finance Minister Rod Gantefoer said. "This is an optimistic signal as we continue forward in the new budget year."

The net transfer from the Growth and Financial Security Fund (GFSF) was also smaller than forecast at third quarter and leaves the GFSF with a year-end balance of $958.3 million.

"That's nearly a billion dollars in the government savings account to deal with unexpected challenges," Gantefoer said.

Comparisons to 2009-10 Budget Estimates

Government was able to maintain the budgeted $424.5 million surplus in the General Revenue Fund (GRF), despite an overall GRF revenue decrease of $394.3 million (3.7 per cent) for a total of $10.27 billion.

The revenue decline was primarily due to lower potash revenue ($2.11 billion decrease from Budget), offset by:

• higher Crown transfers ($472.2 million due primarily to an increase in Crown Investments Corporation of Saskatchewan's (CIC) special dividend); 
• higher taxation revenue ($273.4 million); 
• higher other own-source revenue ($172 million); and 
• higher federal transfers ($146.3 million).

The Government cut costs by $146.6 million compared to the 2009-10 budget through a government-wide belt-tightening exercise of vacancy management, travel restrictions and other cost-cutting measures. As a result, GRF total expense for the 2009-10 fiscal year was $10.1 billion, down 1.4 per cent from the Budget estimate.

"Our government implemented necessary belt-tightening measures to help guide our province through what proved to be a challenging year," Gantefoer said. "By finding further savings and efficiencies across government, we were able to address the revenue shortfall and balance the budget while still managing the priorities and challenges of Saskatchewan people."

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For more information, contact:

Vanessa Beaupre
Finance
Regina
Phone: 306-787-8109
Email: vanessa.beaupre@gov.sk.ca
Cell: 306-526-6793