Released on July 21, 2011
The First Quarter financial report released today by Deputy Premier and Finance Minister Ken Krawetz shows the province remains on track for a balanced budget in spite of significant flood relief costs.
Overall expenses are expected to be up $107 million from budget, mainly because of flooding costs and an anticipated wage settlement with teachers, while revenues are expected to be up $64 million, mainly on the strength of higher federal transfers earmarked for flood relief and own-source revenue.
"We won't know the full costs of this year's flooding for some time yet, but thankfully our financial position is strong enough to handle the additional expense," Krawetz said.
Overall, costs associated with flooding and extreme weather are expected to be about $60 million. A wage settlement along the lines of a recent mediator's report should result in increased costs to Education of approximately $51 million.
Both tax revenue and non-renewable resource revenue remain stable and the Growth and Financial Security Fund (GFSF) is expected to finish the year with a balance of $717 million, up slightly from budget.
The GFSF balance includes a debt reduction payment of $325 million, which reduces General Revenue Fund debt to $3.8 billion, down from $6.8 billion three years ago and the lowest debt level in Saskatchewan since 1987/1988.
In spite of the challenges created by a second year in a row of severe flooding, Saskatchewan's prospects are good, Krawetz said. "Our economy remains strong and we are on the right track. Average weekly earnings are up, we still have the lowest unemployment rate in the country and our taxes are down. In spite of the severe flooding, Saskatchewan's strong financial position has allowed us to meet the needs of the Saskatchewan people."
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For more information, contact:
Randy Burton
Finance
Regina
Phone: 787-6578
Email: randy.burton@sk.gov.ca
Cell: 530-2049