On August 31, the provincial finance minister, Kevin Doherty, released the 2015-16 first quarter financial report, which shows that forest fires and the decline in oil prices have put the province鈥檚 finances into a deficit position after the first quarter of the fiscal year.
Doherty said the government will work hard to bring the province鈥檚 finances back to balance by the end of the year through careful management and restraint measures.
鈥淟ower oil prices combined with an unprecedented number of forest fires and the largest evacuation in Saskatchewan鈥檚 history are putting pressure on the province鈥檚 finances,鈥� Doherty said. 鈥淎t the same time, our diversified economy continues to show strength in other areas. Our population continues to grow, our unemployment rate is the lowest among provinces, and we continue to show the strongest growth in wholesale trade in Canada.
鈥淥ur government has a strong track record of managing the province鈥檚 finances when challenged by volatility and we will meet the challenge again.鈥�
Total revenue for 2015-16 is now forecast at $14.04 billion, down $237.8 million from budget. Total expense is now forecast at $14.33 billion, up $161 million from budget, putting the current projected deficit for the fiscal year at $292 million.
Given the fiscal pressures and continued volatility of world markets and the oil price, the government will reduce discretionary spending through staffing restraint and other operating reductions (contract savings, administration and IT, for example). In addition, the government will defer projects and initiatives where possible and work with its third-party partners to also reduce discretionary spending in their organizations.
鈥淥ur government will be working hard to bring the province鈥檚 finances back to balance by year-end, to keep Saskatchewan strong,鈥� Doherty said. 鈥淎ll ministries, Crown corporations and all government agencies are exercising spending restraint while ensuring we continue to provide vital services to Saskatchewan citizens.鈥�
