As of March 31st, the Saskatchewan Government has an accumulated deficit of $1.37-billion. The financial statement released today shows a significant impact from COVID-19.
Expenses were up by $444-million, which the report says is from health and safety spending and financial support programs provided by the government, because of the pandemic.
They were partially offset by a decrease in pension expense and decreases in crop insurance claims because of favourable crop conditions last year. Even though expenses were up, they were $424-million lower than budget.
The Government’s deficit was $1.13-billion, which is $808-million more than the year prior, but the report says, it’s also $1.3-billion less than budgeted.
Revenue was down by $363 million because of a significant decreases in taxation and non-renewable
resources revenue, also as a result of the pandemic.
There wasn’t as much purchasing going on because of the public health restrictions and lower global commodity prices meant lower non-renewable resource revenue.
The decreases were partially offset by an increase in net income from Government Business Enterprises and COVID-related increases in transfers from the federal government.