Sask. gives itself $260M cushion to deal with uncertainty
REGINA
The Saskatchewan government has inked a $100-million cushion into its mid-year financial forecast for any pandemic related revenue shortfalls as the province deals with a spike in infections.
The Ministry of Finance says that buffer is on top of $160 million left in a $200-million contingency fund to cover expenses tied to COVID-19. About $40 million was spent helping school divisions prepare for the resumption of in-class learning in the fall.
Finance Minister Donna Harpauer said Friday the total $260-million buffer will give the government spending room to pay for unexpected costs in the remaining months of the 2020-21 fiscal year.
“We’re going to be there for our health system, for whatever it takes, and there is no way to say what the magic number will be,” she told a news conference.
She said no decision has been made as to whether more will be spent to support businesses struggling because of restrictions brought in to try to stem the spread of COVID-19.
“Those conversations are taking place as we speak. Right now the restrictions are on for three weeks. There will be an impact. How much of an impact ... nothing has been designed or decided.”
The Finance Ministry attributes a rise in revenue at its mid-year forecast to be in part from $443 million more from Ottawa to help the province deal with the pandemic.
How much federal cash has been spent varies from program to program, said Harpauer. “We will be spending it and it will be allocated accordingly as the year unfolds.”
Opposition NDP economy and jobs critic Aleana Young said the government should make available $18 million in unspent money that was for small business emergency grants during the spring shutdown of nonessential services.
“I’m curious, as a smallbusiness owner, why that money was left on the table when we have heard and I do know how stressful this has been for small businesses across the province,” she said.