Saskatchewan’s financial outlook has dimmed considerably since the provincial budget was released in the spring.
The province is now forecasting a deficit of $349 million at first quarter as compared to a projected $12 million surplus. Total revenue is forecast to be $20.9 billion, and expense is forecast to be $21.2 billion.
Some of the factors which have contributed to this turn-around in fortune include a $163 million dollar decrease in SaskPower net income. But the projected deficit, the Government of Saskatchewan says, is mainly attributable to a drop in forecasted revenue due to the removal of federal carbon tax from customer bills in the first quarter.
Expenses in the first quarter are forecast to be $189 million higher than budget which includes an $80 million increase to address wildfire costs and evacuation activities.
