Saskatchewan Deficit Hits $800 Million as Oil Prices Soar
The Saskatchewan finance minister, Jim Reiter, defended the province's rising deficit on an interview with Evan Bray. The deficit is currently at $800 million.
The revenue increase of $331 million can be attributed to the higher price of oil, which has a significant impact on the provincial treasury. For every dollar above $59.75 per barrel, it translates to approximately $17 million in revenue for the province.
Reiter stated that the additional revenue would go towards general operating funds and not be earmarked for specific projects. When asked about Alberta's oil revenues, he explained that their economy is heavily reliant on oil production, unlike Saskatchewan's more diversified economy.
The minister also touched on potash prices, which have been affected by global conflicts but remain stable at present. He expressed optimism about the upcoming BHP mine and its potential to boost revenue in the long term.