Saskatchewan fiscal update: More revenue; more spending; smaller deficit

Saskatchewan fiscal update: More revenue; more spending; smaller deficit
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REGINA — The Saskatchewan government says higher oil and potash prices will mean more money for the province this year.

But more spending on health care, social services and public-sector pensions will eat up a good portion of that windfall.

The provincial Finance Ministry has released its first-quarter update showing a deficit of $306 million, nearly $60 million smaller than forecast in the April budget.

Revenue is predicted to be almost $170 million more than expected thanks largely in a boost to the forecasted price of oil.

The government is planning to spend $20 million extra on health care, because more people are using the system, and $20 million more on social services because of an increased caseload.

Changes to interest rates also mean more than $50 million in extra pension expenses.

 

The Canadian Press

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