Released on June 24, 2011
The Public Accounts released today show the Saskatchewan economy recovered strongly in 2010-11, producing $1.1 billion more revenue than expected at budget.
This was due mainly to improvements in tax revenue and in non-renewable resource revenue as the economy gathered strength following a global recession.
The stronger revenues allowed the government to make needed expenditures on third party capital projects, and the Saskatchewan Surgical Initiative as well as deal with flooding damage across the province. As a result, overall expense was $841 million higher than anticipated.
The province finished the year with a pre-transfer surplus of $96 million in the General Revenue Fund (GRF), or $270 million more than expected at budget.
The Growth and Financial Security Fund (GFSF) finished the year with a balance of just over $1 billion, up $242 million from budget. Government general debt was unchanged from the previous year at $4.1 billion.
A drop in expense led a slight revenue decline in the final quarter of the year, resulting in a $27.7 million improvement to the surplus at the conclusion of the year.
"These results demonstrate the resilience of the Saskatchewan economy," Deputy Premier and Finance Minister Ken Krawetz said. "At the same time, we know we will have additional expenses this year to help Saskatchewan people deal with the effects of this year's flooding. We are fortunate to start the year with over a billion dollars in the ‘rainy day fund,' as we may have to dip into these reserves to deal with the unprecedented flooding in south east Saskatchewan."
Revenues were up from budget in all categories except federal transfers, including the following:
- Non-renewable resource revenue was up $420 million, due mainly to higher Crown land sales and higher than expected oil prices.
- Tax revenue was up $272 million due mainly to stronger than expected Corporate Income Tax, offset by smaller than expected individual income tax revenue.
- Crown transfers were up $196 million, due mainly to a special Crown Investments Corporation(CIC) dividend for the Children's Hospital in Saskatoon.
Expenses were up $841 million from budget, including the following:
- Health was up $346 million from budget due mainly to investments in the Children's Hospital, long term care projects, the surgical initiative, and new equipment.
- Agriculture was up $97 million, mainly because of the Excess Moisture Program.
- Advanced Education was up $89 million mainly for the Academic Health Sciences Centre and maintenance costs.
- Corrections, Public Safety and Policing up $54 million, mainly due to flooding claims under the Provincial Disaster Assistance Program (PDAP).
- Social Services was up $42 million, due mainly to rental housing development and social housing renovations.
- Energy and Resources was up $40 million to pay for clean up of abandoned uranium mines in northern Saskatchewan.
- Environment was up $40 million for flood relief through the Saskatchewan Watershed Authority.
"We were able to do far more than we expected to in addressing the infrastructure deficit," Krawetz said. "Our total spending on infrastructure was $1.17 billion over 2010-11. Over four years, we will have spent more than $4 billion on infrastructure. We know there is still more to do, but we feel we're making real progress on a number of fronts."
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For more information, contact:
Randy Burton
Finance
Regina
Phone: 306-787-6578
Email: Randy.Burton@gov.sk.ca