Finance Minister Ken Krawetz said stronger than anticipated revenue from corporate income tax is one of the factors that will help the province finish the 2010-11 year with a $137 million surplus in the general revenue fund.
Half of that, or $68.5 million, will automatically go into the province's Growth and Financial Security Fund - which is commonly referred to as a rainy day fund - leaving it with a projected year-end balance of about $1 billion.
The Saskatchewan government had previously anticipated that it would need to dip into its rainy day fund in order to balance spending.
Krawetz called the provincial economy strong, with forecast GDP growth of 1 per cent this year and 4.2 per cent in 2011, while also sounding a message of fiscal caution.
Government public debt is forecast to stay unchanged at $4.1 billion, while Crown corporation debt is projected to increase by about half a billion dollars from March 31, 2010, to $4.4 billion.
Krawetz said the borrowing done by the Crown corporations is "planned debt" that's necessary as businesses such as SaskTel aim to keep up with infrastructure needs in a growing province.
The general revenue fund is forecast to receive $10.68 billion this year, up $726.2 million from the March budget - an improvement due in part to stronger than expected Crown land lease sales, higher oil revenue and a special dividend from the Crown sector to cover the government's children's hospital commitment.
Expenses are expected to increase $415 million to $10.54 billion.
from Western Investor, January 2011
