Sask. finances still on track despite low oil prices, finance minister says

The province's budget remains on track, according to the mid-year financial report released by the government this morning.

Finance Minister Ken Krawetz is still predicting about a $71-million surplus, which is only half a million less than he expected when the budget was presented in March.

Krawetz's spring budget was balanced, but his projections were based on numerous assumptions — including that the price of oil would average around $94 US per barrel.

In recent days, the price of a barrel of West Texas Intermediate Crude has fallen below $75.

Despite that, provincial revenue is up about $125 million from budget time. The government attributes that to higher potash revenue and Crown land sales.

Earlier this month, the credit rating agency Moody's said Saskatchewan was in a good position to handle an ongoing oil price slump.

While it has projected a $75 million surplus for this year, oil royalties account for about 11 per cent of all income, "making its revenues less sensitive to a drop in oil prices," Moody's said.

Flooding in southeast Saskatchewan in the spring has also caused spending to rise more than $100 million.