Saskatchewan ended 2023-2024 in a strong financial position
With Canada’s second-fastest growing economy in 2023, the province ended the 2023-2024 fiscal year with an operating surplus of $182 million. Saskatchewan’s financial status was highlighted in today’s release of Part 1 of the 2023-2024 Public Accounts.
“We experienced significant revenue growth from the third quarter through the end of the year from all sources except federal transfers,” said Deputy Prime Minister and Finance Minister Donna Harpauer. “At the same time, there was also a substantial increase in costs during the year. This investment is needed to support our growing province and the things that matter most to Saskatchewan residents – classrooms, care and communities.”
Total revenue of $20.99 billion was $1.32 billion, or 6.7 percent, higher than the 2023-2024 budget. It included significant increases in taxes and other home-source revenues, driven by a growing population and economy.
Included in the revenue changes were significant corporate tax increases due to improved profitability in 2023 and continued prior year adjustments due to the strong performance of the resources sector in 2022.
As with revenues, total expenses of $20.81 billion were $2.15 billion, or 11.5 percent, higher than budgeted. The most notable increase was in agriculture, as ongoing drought in some parts of the province resulted in higher crop insurance payouts, while healthcare costs were higher due to increased demand for services. Non-cash adjustments related to the inflation indexation of pensions also contributed to the increase in costs.
Compared to the third quarter update, total costs decreased $55 million, while revenues increased $610 million.
Saskatchewan has the second lowest net debt ratio in Canada and continues to have the second highest credit rating in Canada when the ratings from the three major rating agencies – Moody’s Ratings, S&P Global Ratings and Morningstar DBRS – are combined.
The year-end surplus is a $664.7 million improvement over the $482.5 million deficit forecast in the third quarter update.
“Our budget forecasts follow best practices from the public and private sectors, but challenging situations around the world and issues closer to home, such as weather conditions, have led to some extraordinary swings over the course of 2023-2024,” Harpauer said. “Fortunately, we were able to end the year with a surplus thanks to the strength of our economy, which continues to show increasing growth across a wide range of sectors.”
The Public Accounts Volume 1 2023-2024 provides a complete and accurate picture of the Government of Saskatchewan’s finances. For more information on the province’s fiscal health, view Part 1 at https://publications.saskatchewan.ca.
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