It's so far, so good for the provincial budget as the numbers from the first quarter are in.

Before the weekend, Finance Minister Kevin Doherty announced the 2017-2018 budget is on track as the government rolls into the fall. The deficit forecast remains unchanged at $684.7 million with a slight 0.3 per cent increase in revenue at $42 million and total expenses predicted to rise to $82 million.

Doherty shared how the province's economy has shown positive data this year as well. Saskatchewan has proven to be among the top three in certain categories so far including:

  • the third-highest growth among Canadian provinces in manufacturing sales;
  • the third-highest growth in average weekly earnings;
  • the third-highest growth in population; and
  • the second-highest growth in new motor-vehicle sales.

“The Saskatchewan economy is performing well so far, and for the first time in two years, is projected to post positive growth,” said Doherty. “We have more to accomplish, but at first quarter we are meeting our fiscal challenge by controlling spending and shifting away from over-reliance on volatile resource revenue.”

According to the Finance Minister, as of right now, the fiscal plan remains on track as they try to bring the province's budget back to balance by 2020.

The budget includes a $300 million contingency as well. $40 million will be used to offset expense pressures with an additional $125 million towards offsetting compensation savings. According to the report, the compensation savings will not be achieved by this fiscal year due to more time being required for negotiations.

“The reason we built a contingency into this year’s budget was to help address in-year pressures,” explained Doherty. “We still have work to do to control government’s overall costs, including savings we are working hard to achieve in total compensation expense.”

 

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