Saskatchewan could see a $1-billion deficit, due to a $600-million drop in revenue.
The deficit was initially forecast at $434-million in the June budget, but Finance Minister Kevin Doherty said there are several things factoring into the drop-off in revenue.
“The deterioration in our personal income-tax, our corporate income-tax, our provincial sales tax and our fuel tax — you combine all of those together and it’s about $400-million down from what we forecast in our budget on June 1,” explained Doherty.
“Similarly, on the non-renewable resource sector, we continue to see softening there as well to the tune of about $200-million.”
The province hopes to make up for some of that revenue loss with a one-time payment from the federal government.
The minister says there are also huge pressures on the expenditures side, with things like health care, education and social services.
“74 cents of every dollar we collect from taxpayers goes to those three areas of government. We have to get inside those big spending areas and make sure that we’re spending it on the most appropriate programs and services,” he said.
The minister hinted at future cuts, before announcing the mid-year financial report will be released next week.
“There are campaign promises made by this party that have costs associated with them that we’ll perhaps be either suspending or rolling back at the mid-year (report) next week,” said Doherty.
Finance Minister Kevin Doherty predicts a higher than forecast deficit for Saskatchewan.