The Saskatchewan government says the unprecedented drop in potash sales has left a big hole in their budget so they are dipping into the rainy day fund, otherwise known as the Growth and Financial Security Fund.

The Finance Minister has issued the mid-year financial report which forecasts potash revenues as 109 million dollars.  That's down 1.8 billion from the spring budget.  Rod Gantefoer says in 2009 the potash industry experienced its lowest sales since 1972.

To balance the budget without tax increases or cuts, the government is going to take 190 million from its Growth and Financial Security Fund, another 560 million will come from the sale of fertilizer company Saskferco. 

The rest of the loss will be offset by several measures including an expected increase in oil revenue, federal transfers, and by a lower than expected health budget. 

The government is deferring several capital projects including 122 million for long term care facilities and 95 million for the Children's Hospital of Saskatchewan although Gantefoer assures residents that the Crown Investment Corporation is holding the money for the children's hospital for when construction begins. (vmf Nov 19/09)

Comments (1)

Subscribe to this comment's feed

Show/Hide comments

...
written by Mac+Fries , November 19, 2009

Perhaps Mr Gantefoer needs to tell Mr.Wall to tell Mr.Doyle to pack his bags and get someone in there that will drop the price a few bucks,the sales will flow and problem solved !!
Or is the provincial government afraid to stand up to one "American" ?

Show/Hide comment form