Drop in potash revenue pushes Saskatchewan to dip into rainy day savings

REGINA – The Saskatchewan government is dipping into its rainy day fund to pay the bills.

The province says in its third-quarter budget update that a drop in potash and oil revenue means it will have to take $135 million out of its savings to offset the shortfall in its general revenue fund.

Potash revenue is expected to be down $71.9 million from the mid-year projection, while oil revenue is now forecast to be down $73.7 million.

That wipes out the thin surplus of $64.8 million the government was projecting for the general revenue fund in its budget last March.

However, if the government had reported only on a summary basis, it says it would be expecting a surplus of more than $400 million.

Several provincial auditors have said the government should only report on a summary basis, which takes into account all areas of government, including Crown corporations.

The general revenue fund only looks at departmental spending.