The COVID-19 pandemic has decimated Saskatchewan’s economy, halting any positive momentum going into the fall election.
The dramatic stop to the economy in March when a state of emergency was declared, with stay-at-home recommendations, shuttered businesses, layoffs and a collapsing oil price creating fewer revenues, plunged the province back into a deficit of $2.4 billion.
Before the pandemic the province was forecasting a slight surplus.
The Gross Domestic Product, the measurement for growth of the economy is expected to decline 6.2 percent with approximately 15,800 fewer jobs with an unemployment rate of 8.6 percent.
Oil is forecasted at $30 per barrel, with the economy expected to rebound next year.
Finance Minister Donna Harpauer said the deficit is related to the pandemic, and not structural, adding that as the economy recovers revenues will come back, bringing the province back to balance in three-to-four years without cuts to programs and services.
Yet despite the negative projections of this year, the province is forging ahead with a $2 billion over two-years stimulus package that Harpauer said is aimed at getting people back to work.
“To bring those revenues back is it going to be easy? No, it’s not going to be easy and we’re going to have to have spending restraints. I don’t think we’re in the position to bring on any extremely high cost new initiatives,” said Harpauer. “How does this look? It looks daunting. However, do I believe we can’t do it, get back to regain the economy, I firmly believe we can it’s just going to take a few more years.”
For the North:
Northern Revenue Sharing up nearly $2 million to $20.58 million.
$188,000 to staff a second ambulance in Pelican Narrows for the Peter Ballantyne Cree Nation;
Pedestrian crosswalk improvements on Highway 155 in Buffalo Narrows;
One percent to regional libraries and the Pahkisimon Nuye?ah Library system;
$60.3 million for highway and airport maintenance;
$15 million planning, design and procurement for the Prince Albert Victoria Hospital replacement;
14 kilometres of base stabilization and clay capping on Highway 135, South of Pelican Narrows;
17.6 kilometres of base stabilization and clay capping on Highway 165, South of Pinehouse;
Starting construction of the first phase of the Wollaston Lake Road
For First Nations and Metis:
The province was unable to calculate casino revenue profits as casinos are currently closed. Its estimated casinos could see a decrease of $80.7 million. The government is granting First Nations community based organizations, which would receive a portion of casino revenues $50 million for emergency pandemic support to offset the losses;
$158 million to the Sask. Polytechnic, Saskatchewan Indian Institute of Technologies and Gabriel Dumont Institute.
For northern airports:
Fond du Lac; Resurfacing the runway, installing high intensity lighting and enlarging the turning area at the end of the runway.
Pelican Narrows; Base strengthening, lighting and fencing.
Cumberland House; Apron grading, base strengthening and a drainage study.
“They don’t have a plan for tomorrow. Now people are hurting more and more and they’re looking at today’s budget for some sort of plan. Unfortunately they won’t find it, it’s not there,” NDP leader Ryan Meili said.
Meili said the budget lacked investment in people as it fails to address seniors, long-term care, children and education.
The government is expected to add to the debt this year with $3 billion, with $1 billion going to the stimulus package. Revenues are down $1.6 billion to $13.6 billion and spending is projected at $16.1 billion.
(Photo: Finance Minister Donna Harpauer. By Dan Jones.)