The province says the plan to cut operating debt remains on track, despite a drop in the first-quarter projected surplus.
Minister of Finance and Deputy Premier Donna Harpauer originally estimated a $1 billion surplus at budget, however due to wildfire-related expenditures and higher non-cash pension expenses, that amount has dropped to just $485.5 million.

She adds that although the projected surplus is not as high as originally forecasted, the province will continue to pay down its $7.5 billion operating debt. She says this is possible because of a strong year-end last year, with higher cash balances.

However, there are several factors that she says could impact the current surplus. These include the crop insurance payouts due to drought in southern Saskatchewan, negotiations for teachers’ wages and the disruption at the Port of Vancouver. She expects Port of Vancouver data to reflect in the second quarter.

Revenue forecasts are also down $123.7 million, currently sitting at $19.6 billion. Harpauer sites an over half-a billion-dollar reduction in the non-renewable resource revenue forecast as the culprit. She adds that this cut was offset by taxation revenue.
On the topic of potential affordability cheques this year, Harpauer says the province is in no position to hand them out. Last year’s cheques cost the province $450 million, an amount that would deplete this year’s entire surplus.