Following the economic turmoil from the coronavirus pandemic, the government of Saskatchewan says the province’s budget will return to a surplus in 2024-25.
On Thursday, the provincial government released its first quarter budget update, which forecasts a $2.1 billion deficit, $296 million less than previously projected.
The government says its medium-term outlook includes smaller deficits over the next three years with deficits of $1.4 billion in 2021-22, $855 million in 2022-23, and $340 million in 2023-24.
The province says in 2024-25, they expect a surplus of $125 million.
Earlier this year, the government was prepared to release a balanced budget, but with the oil crash and the coronavirus pandemic hitting at the same time, provincial revenues were down while expenses were up as the government dealt with the health crisis.
The province’s GDP is projected to decrease by 5.5 per cent in 2020, which is less than the 6.3 per cent contraction initially forecasted in the 2020-21 budget.
“Higher-than-expected oil prices and production, along with the positive impact of federal and provincial support measures, including provincial capital stimulus, are the primary reasons for the improved outlook,” said Finance Minister Donna Harpauer.
At the first quarter, revenue is forecasted to be $14.05 billion, an increase of 2.9 per cent over what the 2020-21 budget forecasted.
According to the finance minister, this is largely because of federal funding. An increase in resource revenue is also forecasted at first quarter. The forecasts for taxation and other own-source revenues are unchanged from the 2020-21 budget.
While revenues are higher than projected, the province says, revenue will not return to pre-crisis levels until 2022-23, says Harpauer.
“The outlook is consistent with the province’s economic forecast and is based on a reopening of the economies in Saskatchewan, Canada and globally at its current pace, and that any resurgence in COVID-19 can be successfully mitigated,” said Harpauer in a press release.
Over the course of the medium term, public debt is forecast to rise to $33.6 billion by 2024-25, primarily for needed infrastructure.
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2:48 Trudeau says government needs new team focused on rebuilding Canada’s economy
Trudeau says government needs new team focused on rebuilding Canada’s economy
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
