Potash, oil revenue down, but Saskatchewan says it still sees a budget surplus

REGINA – Lower prices for potash and oil have hit Saskatchewan in the pocket book, but the government says there is still a small budget surplus.

The mid-year financial update says overall revenue is projected to be $11.2 billion — down $51 million from the spring budget.

That’s in large part because potash revenue dropped by $239.8 million and oil is down $164.6 million.

But the province says much of the loss will be offset by increased tax revenues because of the strong economy and because ministries have been looking for ways to save money.

The forecast is for a $12.4 million surplus before any transfers are made from the province’s rainy-day fund.

It’s a big drop from the March budget which initially estimated a $95 million surplus.