REGINA - Saskatchewan's projected deficit for 2024-25 has gone up.
First quarter numbers are out and the province is reporting a deficit of $354 million, up $80.6 million from $273.2 million in this spring's budget.
"It actually isn't a significant difference when you're talking about a $20 billion budget and its an $80 million adjustment," said Finance Minister Donna Harpauer in an exclusive interview with SaskToday on Thursday afternoon.
The province is reporting an increase in revenue of $91.9 million due to improvements in fees, investment income and miscellaneous income. Harpauer said the revenue increase is particularly due to a better price in oil and uranium.
But they are also reporting expenses are up $172.5 million due mainly to increases in general government expenses for compensation costs in collective bargaining -- in particular the collective bargaining agreement with the Saskatchewan Government and General Employees’ Union.
Despite the additional $80 million to the deficit, Harpauer is still saying the province is on track for a small surplus next year in 2025-26.
"We are still on track for a fairly slim balance next year. Each and every budget year is unique and I have to compare it to my farming experience when I was farming. Each and every farming season is unique and a decline in revenues in one season doesn't mean the same decline the following season."
Harpauer says they rely heavily on private forecasters and people in the resource industry to project what the next year will be. "We use those numbers and what happens today doesn't change those numbers in the future."
The province is reporting strength in the provincial economy, pointing to Saskatchewan having the second-fastest-growing economy among provinces last year as measured by real GDP, at 1.6 per cent. The province's news release also points to real GDP expected to grow by 1.3 per cent in 2024, which the province states is the third-highest among provinces and also up one per cent from budget. Harpauer also is pointing to a net debt-to-GDP of 13.4 per cent as of March 23, 2025, also up from budget.
"Saskatchewan is faring in the top five or often in the top one or two in the nation, which is encouraging," Harpauer said.
The opposition New Democrats have issued their statement on the first quarter update. Finance Critic Trent Wotherspoon had this to say:
"This is just further proof that Scott Moe and the Sask. Party can't be trusted with our province’s finances. This government wastes money hand over fist with ballooning IT contracts, out-of-province medical procedures at ten times the price, and expensive junkets, like Moe’s million dollar-trip to Dubai. Now they are blaming their failure to manage the finances on the public-service contract that they should have seen coming from a mile away. This is a government that has failed to stick to its own financial forecasts for the better part of a decade.
"It’s time for a change. Today, Carla Beck guaranteed that a Saskatchewan NDP Government will not raise taxes, and we will release a platform that balances the budget during our term using actual figures the people of this province can trust. We have a plan to make life more affordable and get our province out of last place on healthcare and education."
In response, Harpauer expressed her skepticism about Wotherspoon's statement.
"It's the same old, same old from the NDP, quite frankly, it's nothing new," said Harpauer. As for the NDP accusation of "blaming" the deficit on the collective agreement, Harpauer said "we're just informing the public on why the changes are taking place, we're not blaming anybody."
As for the NDP's pledges not to raise taxes and to suspend the gas tax for six months, Harpauer said "it will be very interesting to know where they will find cuts of $250 million because that is what cutting the gas tax will cost the province."
She was even more dismissive of the Sask United Party pledges to cut the PST in half down to three per cent. "I don't even know what to say because they have no clue where they'll get the money... it's unrealistic."
Going into a provincial election this fall, Harpauer still feels confident about the state of the provincial finances despite the additional $80 million adjustment.
"I think we have a path to balance the budget going forward. I feel comfortable and optimistic about that and I feel optimistic about the upcoming election."
