Crop insurance and drought relief boosting Saskatchewan deficit: Finance Minister
Global News
At mid-year Saskatchewan's expense projections are up $2.5 billion over budget. The increase is connected to costs associated with drought relief.
Dry weather is costing Saskatchewan big this year. The impact of crop insurance and drought relief is boosting the provincial deficit.
“If you backed out the expense of crop insurance as well as the livestock producer support we would almost be balanced,” Finance Minister Donna Harpauer said Monday at a press conference detailing the province’s mid-year financial report.
“That is how significant that support was for our agricultural producers.”
The province is projecting a deficit of $2.7 billion this year, up $97 million from initial budget forecasts, despite a forecasted revenue increase of $2.4 billion.
Expenses are up around $2.5 billion from initial budget projections. Crop insurance and drought relief account for $2.1 billion of that increase. The mid-year report notes that assistance for livestock producers has cost $292.5 million this year.
The total crop insurance indemnity forecast for 2021/2022 is $2.4 billion — the highest it’s ever been.
Healthcare spending is up $250 million over budget projections.
That includes an increase of $220 million for the Saskatchewan Health Authority’s pandemic response, $30 million for the Ministry of Health for pharmacy vaccine delivery, and usage of the Saskatchewan Prescription Drug Plan.