Released on November 27, 2012
Strong Economy Offsets Downturn in Resource Revenue
The overall strength of the province's growing, diverse economy and prudent expense management has kept Saskatchewan on track to be the only province in Canada to balance its 2012-13 budget.
The 2012-13 Mid-Year Report released today projects a $12.4 million pre-transfer surplus for the General Revenue Fund (GRF) at year end and an increased year-end surplus of $22.5 million for the Summary Financial Statements, up $7.7 million from budget. The Growth and Financial Security Fund is now projected to finish the year at $664.5 million.
"This Mid-Year Report shows the benefits of growth," Finance Minister Ken Krawetz said. "Despite lower than expected resource revenues, our growing population and growing economy means a larger tax base and increased tax revenues to offset the declines in resources."
Overall revenue is now forecast to be $11.24 billion, down $51.0 million from budget, largely due to lower prices and less demand for non-renewable resources. However, other key revenue sources are up from budget, including projected increases in personal income tax and other tax revenue related to the strong Saskatchewan economy.
Overall expenses are up $31.6 million from budget to $11.23 billion, partly reflecting the continued costs of flooding in recent years. Much of this increase is offset by savings from expense management and by a reduction in debt servicing costs.
Saskatchewan's economy continues to perform well in 2012. So far this year, Saskatchewan ranks either first or second in Canada in terms of economic growth, employment growth, low unemployment rate, average weekly earnings, value of international exports, manufacturing sales, retail sales, value of building permits, number of housing starts and investment in both residential and non-residential construction.
"In the new Saskatchewan, our economy is more diverse, so even when one revenue source is down, others are up to maintain the balance," Krawetz said. "As a result, Saskatchewan has the only balanced provincial budget in Canada.
"Sound fiscal management and balanced budgets are a fundamental principle of the Growth Plan released by Premier Wall last month and a key part of the Saskatchewan Advantage."
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For more information, contact:
Brian Miller
Finance
Regina
Phone: 306-787-6605
Email: brian.miller@gov.sk.ca