Sask. gov't pays down debt with $1.58B surplus, Opposition criticizes lack of affordability

Government wraps up fiscal year with surplus WATCH: The Saskatchewan Government has wrapped up the 2022-23 fiscal year with $1.58 billion left over.

The Government of Saskatchewan has retired over $1 billion of the province’s debt after finishing the 2022-23 fiscal year with a large surplus. The Saskatchewan NDP called for the surplus to be used in affordability measures.

A $1.58 billion surplus has allowed the province to retire $1.5 billion in the provincial operating debt, with the province claiming the move saved Saskatchewan $66 million in estimated future interest costs.

Volume one of the province’s public accounts show the revenue is due to high oil and potash prices along with an increase in corporate and personal income taxes as well as in the Provincial Sales Tax (PST) in the 2022-23.

Total revenue of the province was up $3.44 billion or 20 per cent for a total of $20.9 billion from the projection in the 2022-23 budget.

Non-renewable resource revenue had a reported increase of $1.69 billion or 58.2 per cent compared to the budget forecast. Total revenue was recorded as $4.6 billion.

Taxation revenue for the province increased $1.72 billion or 21.2 per cent from budget projections for a total of $9.81 billion.

Total expenses for the province were recorded as $19.01 billion, which was $1.39 billion or 7.9 per cent higher than budget projections.

According to the provincial government, this was mainly due to increased agriculture expenses.

“While crop insurance payouts were significantly lower than the previous year they were still higher than budgeted, largely because of drought in the southwest part of the province along with higher premium expense and higher values of insurable acres,” the news release read.

Saskatchewan’s public debt currently stands at $30 billion as of March 31, 2023, which is down $2.6 billion from budget due to debt retirement and less borrowing.

'PEOPLE DESERVE BETTER'

Saskatchewan NDP MLA and finance critic Trent Wotherspoon called out the province for not utilizing the large surplus for issues such as affordability and infrastructure.

“This is a government that – despite raking in through-the-roof windfall revenues – stuck Saskatchewan people with new taxes and fee hikes and higher bills, making the crushing cost-of-living increases worse. And despite these windfall revenues, they still failed to fix our hospitals and schools,” he said in a statement to media.

“Compared to every other province, Saskatchewan people are facing the most stress and hardship with their finances, and – inexcusably – Scott Moe chose to make life more expensive with higher power and energy bills and 32 new taxes and fees at a time when people needed and deserved lasting cost-of-living relief.”

“This is an out-of-touch government. People deserve so much better,” he added.