Saskatchewan Government Adds $1 Billion to Deficit – Urgent Update

URGENT UPDATE: Saskatchewan’s government has just announced a staggering $1 billion increase to the provincial deficit, deepening the financial crisis as the province grapples with significant fiscal challenges. During a committee meeting on October 17, 2023, officials revealed that an additional $813 million is required for SaskPower, the province’s electrical utility, alongside $194 million needed to cover unpaid carbon tax charges.

The opposition NDP party is raising alarm bells, accusing Premier Scott Moe‘s government of evading accountability. NDP finance critic Trent Wotherspoon expressed frustration, questioning, “Are you telling me that we aren’t going to answer for our constituents and those that we serve on an appropriation of this matter? This is so incredibly reckless.”

NDP’s SaskPower critic, Aleana Young, warned that the financial shortfall could lead to increased electricity rates for consumers. “(SaskPower) is in a position of historic loss,” she stated. “How are they going to get out of that hole? We don’t know. We couldn’t ask them.”

The additional funds will be submitted for a vote in the legislative assembly, and if approved, it could escalate the provincial deficit to at least $1.4 billion, a significant jump from the previously projected $427 million deficit. Earlier this year, the province had initially anticipated a $12 million surplus.

In a statement, the Saskatchewan government maintained that ministers are not obligated to attend committee meetings to discuss spending plans, referencing a similar absence during a meeting in 2022. However, the lack of ministerial presence during this critical discussion has drawn intense scrutiny from the opposition.

As the financial situation evolves, residents of Saskatchewan are left anxious about the implications for their energy bills and the overall economic stability of the province. The urgency of these developments cannot be overstated; the decisions made in the coming days will have lasting impacts on the community.

Stay tuned for updates as this story develops, and watch for the assembly’s vote on these significant expenditures.