Finance Minister Donna Harpauer says that Saskatchewan’s finances closed out the 2022-2023 Fiscal Year strong. $1.5 billion of its $1.58 billion surplus went into reducing the provincial operating debt, which will realize a saving of $66 million annually in interest.
The government release states that revenue increases largely due to high oil and potash prices as well as higher Corporation Income Tax (CIT), Personal Income Tax (PIT) and Provincial Sales Tax (PST) revenue in 2022-23.
"Saskatchewan led the country with 5.7 per cent GDP growth in 2022 and is experiencing continued economic growth so far in 2023," Harpauer said. "As a result, in 2022-23 Saskatchewan experienced strong revenue from our resource sector and from corporations achieving success in our province.
"We were able to help Saskatchewan residents and businesses with affordability in 2022-23, with $500 Saskatchewan Affordability Tax Credit (SATC) payments, keeping gym and fitness memberships and recreational activities for youth PST exempt, extending the small business tax rate reduction, and retiring $1.5 billion in operating debt, which when combined with lower borrowing, is resulting in lower interest costs this year and into the future. That's growth that works for everyone."
Recovery from the 2021 drought, and lower crop insurance indemnities when compared to the prior year, helped contribute to Saskatchewan's improved 2022-23 fiscal results.
Saskatchewan's $30.0 billion in public debt at March 31, 2023, is down $2.6 billion from budget, due to debt retirement and less borrowing needed because of the strong surplus.
"Saskatchewan has the second-lowest net-debt to GDP ratio among the provinces, and continues to have the second highest credit rating," Harpauer said. "Our finances are strong and we are continuing to manage expenses carefully while investing in priority programs, services and capital projects for Saskatchewan people."