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.