Year-End Financials Show $1.3 Billion Drop in 2020-21 Deficit
Final results for the 2020-21 fiscal year in Saskatchewan show a deficit of $1.13 billion, a decrease of $1.3 billion from budget.
The considerable improvement over budget is attributable to both higher-than-budgeted revenue and lower-than-budgeted expense. All revenue categories came in greater than budgeted, except for taxation. Lower-than-budgeted agriculture, environment and natural resources, and education expenses are partly offset by greater-than-budgeted health expenses.
"Our year-end financial statements show that Saskatchewan is in a much better fiscal situation than we anticipated as life and the economy start to get back to normal following the global pandemic," Deputy Premier and Finance Minister Donna Harpauer said. "Moving forward, our focus continues to be on protecting Saskatchewan people, investing in vital infrastructure such as highways, hospitals and schools and helping our economy grow and recover."
Total revenue of $14.52 billion in 2020-21 is up $875 million, or 6.4 per cent, from the budget projection. All revenue categories recorded an increase from budget, except for taxation revenue, with notable increases in net income from Government Business Enterprises (GBEs), and in transfers from the federal government to help fight COVID-19. Revenue is down $363 million, or 2.4 per cent, from the prior fiscal year (2019-20). Significant decreases in taxation and non-renewable resource revenue are partly offset by higher transfers from the federal government and by higher GBE net income.
Total expense of $15.65 billion in 2020-21 is $424 million, or 2.6 per cent, lower than projected at budget. The decrease is primarily due to lower-than-budgeted agricultural insurance claims resulting from favourable crop conditions. Expense in 2020-21 is $444 million, or 2.9 per cent, higher than the prior fiscal year. The most notable increases are in health, economic development, and community development, primarily due to COVID-related expenses.
"Saskatchewan people are resilient and our province has what the world needs as the global economy recovers from the pandemic," Harpauer said. "We are seeing greater private investment recently, which demonstrates confidence in our province's economy and solid fiscal foundation. We are seeing job growth that is the highest among provinces, and we are leading Canada's economic recovery."