The Canadian Taxpayers Federation is suggesting that the Government of Saskatchewan desperately needs a debt repayment plan.

Gage Haubrich, the Prairie Director for the Canadian Taxpayers Federation, says the province is experiencing a resource revenue boom right now, and the provincial budget estimates this year’s resource revenues at $3.3 billion; one of the record highs for the decade.

He adds that the increase has fortunately allowed the government to pay down $1 billion of debt, but by 2027, the government is planning to borrow $4 billion more. Haubrich suggests a heritage fund would be the solution to making Saskatchewan debt-free, as it would require the government to deposit non-renewable resource revenues into it.

Saskatchewan has had such a fund before, but a lack of protection allowed politicians to raid the fund, which resulted in it being shut down.

Haubrich concludes that instead of considering a debt repayment plan, the government continues to spend resource revenue just a fast as it comes in, and in turn is causing the province’s debt to soar.