After projecting a surplus in the spring budget, the Saskatchewan government now says it's expecting a $292-million deficit.
"While it's concerning, obviously, it is manageable," Finance Minister Kevin Doherty said Monday.
"We've seen this in years past where the volatility in our revenue sector and what have you has demanded that government take action on the expenditure side. And that's exactly what we intend to do before the end of this fiscal year."
According to the government's first-quarter financial update, a drop in oil revenue plus an increase in spending to fight forest fires is responsible for much of the red ink.
When the budget was released in March, the province had projected a $107-million surplus.
However, since then the price of crude oil has dropped and unprecedented forest fires have raged across northern areas.
The province estimates it will spend about $100 million more than originally budgeted on wildfires. Other expenses that are higher than expected include flood costs and additional expenditures for family services and people with disabilities.
Saskatchewan expects $292M deficit due to fires, oil price collapse - Saskatchewan - CBC News
"While it's concerning, obviously, it is manageable," Finance Minister Kevin Doherty said Monday.
"We've seen this in years past where the volatility in our revenue sector and what have you has demanded that government take action on the expenditure side. And that's exactly what we intend to do before the end of this fiscal year."
According to the government's first-quarter financial update, a drop in oil revenue plus an increase in spending to fight forest fires is responsible for much of the red ink.
When the budget was released in March, the province had projected a $107-million surplus.
However, since then the price of crude oil has dropped and unprecedented forest fires have raged across northern areas.
The province estimates it will spend about $100 million more than originally budgeted on wildfires. Other expenses that are higher than expected include flood costs and additional expenditures for family services and people with disabilities.
Saskatchewan expects $292M deficit due to fires, oil price collapse - Saskatchewan - CBC News