Saskatchewan’s bottom line remains stable, government posts a $1.1B surplus

Saskatchewan’s bank account remains relatively unchanged while its bottom line continues to be affected by Russia’s invasion of Ukraine, global supply shortages and rising inflation.

The province is reporting a $1.1 billion surplus in its mid-year financial update, an increase of over $50 million from last quarter.

The government says the province brought in more than $2.4 billion in the first six months of the year, mostly from a rise in oil and potash production.

It has used some of that money to dole out inflation-fighting cheques to residents, help Ukrainians come to Saskatchewan and pay down debt.

Deputy finance minister Max Hendricks says potash has been doing the heavy lifting in bringing in revenue, with oil to a lesser extent.

But the government says potash prices have slowed in the second half of the year, a trend that could continue as increased supply from Russia and Belarus finds its way to market.

“Our province’s strong economy and resources that belong to all Saskatchewan people are contributing to the province’s bottom line,” Finance Minister Donna Harpauer said in a statement.

“Revenue is forecast to be up from budget, largely the result of high potash and oil prices, as well as higher taxation revenue which reflects solid economic growth.”

The last time Saskatchewan saw this large of a windfall was in 2008-09, when it reported a $2.97 billion surplus.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.