The consequences for 2019-20 fiscal year presented a $319 million deficit resulting from a precipitous decline in revenue during the fourth quarter.
The impact of the global COVID-19 pandemic affected the market downturn.听
鈥淧rior to the global COVID-19 pandemic, Saskatchewan was on track for balanced budgets in 2019-20 and in the current fiscal year,鈥� Finance Minister Donna Harpauer said.
鈥淥ur government released a budget on June 15 that meets the challenges presented by the pandemic.听I am confident that as Saskatchewan鈥檚 economy recovers, our revenues will also recover and we will get back to balance in the coming years,鈥� the minister added.听
The province鈥檚 revenue depreciated by $490 million in the fourth quarter, largely because of a $431 million decline in net income from investment losses in the Government Business Enterprises (GBEs).听
Total revenue of $14.89 billion in 2019-20 was less than budgeted by $138 million, or 0.9 per cent.
This reduction in revenue was a result of lower-than-expected net income from GBEs, non-renewable resource and taxation revenue 鈥� all partly counterbalanced by greater-than-expected transfers from the federal government and other own-source revenue.听
Revenue in 2019-20 was up by $386 million compared to the fiscal year of 2018-2019.
Total expenses added to $15.21 billion in 2019-20, which is $216 million [1.4 per cent greater] than originally accounted for in the budget.听
The upsurge in spending over the budget was related to greater-than-expected education expenses allied to non-cash pension expenses and health expenses because of volume-based pressures 鈥� these increases were partly offset by lower-than-budgeted agricultural insurance claims due to favourable crop conditions.听
Total expense in 2019-20 represents an escalation of $437 million, or 3.0 per cent, compared to the previous fiscal year.
鈥淥ur government will continue to assist Saskatchewan people through the pandemic while continuing to invest to stimulate the provincial economy and create jobs,鈥� Harpauer said.
鈥淓very province in Canada and every jurisdiction in the world has been impacted financially and economically by the global pandemic. However, Saskatchewan is better positioned than most on the path to economic and financial recovery,鈥� Harpauer resolved.
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