The mid-year Saskatchewan financial report released on Monday morning is forecast a deficit of $250.5 million—compared to a $485.5 million dollar surplus in the first quarter report three months ago.
Back-to-back droughts in parts of the province and much lower than expected potash revenue are the main reasons, according to Finance Minister Donna Harpauer.
Potash revenue is expected to fall $551.8 million from budget projections, due to a 28.6 percent drop in potash prices. The mid-year fiscal update has reduced the average potash price to $263 US per tonne compared to the March projection of $368 US per tonne.
Agriculture expenditures are also $853 million above budget. Most of that went to increased crop insurance claims.
The costs of wildfire control and evacuations this summer added another $111 million to the forecasted deficit.
The province’s gross debt is pegged at $31.6 billion—up $709.5 million from budget.
