Saskatchewan Finishes 2022-23 With Surplus, Pays Down $1.5 Billion of Provincial Operating Debt

Released on June 29, 2023

Saskatchewan's finances are strong. A $1.58 billion surplus achieved at year-end of 2022-23 enabled the province to retire $1.5 billion of the provincial operating debt, saving $66 million per year in estimated future interest costs. 

Public Accounts 2022-23 Volume 1, released today, shows revenue increases largely due to high oil and potash prices as well as higher Corporation Income Tax (CIT), Personal Income Tax (PIT) and Provincial Sales Tax (PST) revenue in 2022-23. 

The surplus also represents a $3.05 billion improvement from the prior year deficit of $1.47 billion in 2021-22. 

"Saskatchewan led the country with 5.7 per cent GDP growth in 2022 and is experiencing continued economic growth so far in 2023," Deputy Premier and Finance Minister Donna Harpauer said. "As a result, in 2022-23 Saskatchewan experienced strong revenue from our resource sector and from corporations achieving success in our province.  

"We were able to help Saskatchewan residents and businesses with affordability in 2022-23, with $500 Saskatchewan Affordability Tax Credit (SATC) payments, keeping gym and fitness memberships and recreational activities for youth PST exempt, extending the small business tax rate reduction, and retiring $1.5 billion in operating debt, which when combined with lower borrowing, is resulting in lower interest costs this year and into the future. 

"That's growth that works for everyone."

Total revenue of $20.59 billion was up $3.44 billion, or 20.0 per cent, from the projection in the 2022-23 Budget. The increase at year-end compared to budget was largely due to increased resource and taxation revenue.

Non-renewable resource revenue was $4.60 billion in 2022-23, an increase of $1.69 billion, or 58.2 per cent, compared to the forecast at budget, fueled by higher potash and oil and gas prices.

Taxation revenue of $9.81 billion in 2022-23 was up $1.72 billion, or 21.2 per cent from budget. The increase was largely due to increases in revenue from CIT, PIT and PST as the result of a strong economy.

Recovery from the 2021 drought, and lower crop insurance indemnities when compared to the prior year, helped contribute to Saskatchewan's improved 2022-23 fiscal results. 

Total expense of $19.01 billion in 2022-23 was $1.39 billion, or 7.9 per cent, higher than projected at budget. The increase was primarily due to higher than forecast agriculture expense, because while crop insurance payouts were significantly lower than the previous year they were still higher than budgeted, largely because of drought in the southwest part of the province along with higher premium expense and higher values of insurable acres. SATC payments made to residents in 2022-23 totalled $422.7 million. 

Saskatchewan's $30.0 billion in public debt at March 31, 2023, is down $2.6 billion from budget, due to debt retirement and less borrowing needed because of the strong surplus.

"Saskatchewan has the second-lowest net-debt to GDP ratio among the provinces, and continues to have the second highest credit rating," Harpauer said. "Our finances are strong and we are continuing to manage expenses carefully while investing in priority programs, services and capital projects for Saskatchewan people."

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