Canadian province Saskatchewan sees budget deficit shrinking on higher potash, oil prices
By Ismail Shakil
(Reuters) -The Canadian province of Saskatchewan on Wednesday forecast a deficit of a C$463 million ($369 million) within the 2022-23 fiscal yr, lower than a fifth of final yr’s C$2.6 billion deficit, as stronger oil and potash costs deliver in additional income.
The province, house to the world’s largest potash trade, accounting for about one-third of annual international manufacturing, stated it expects income to rise by 18.5% to C$17.2 billion within the fiscal yr beginning in April. Spending is projected to extend by 3.1% to C$17.6 billion.
Potash income is budgeted at C$1.5 billion in 2022-23, up from the 2021-22 forecast of C$419.8 million, reflecting a better common value forecast.
Potash costs are close to a 10-year excessive, and the current sanctions on Russia and Belarus, the second- and third-largest potash suppliers, are fuelling fears of meals shortages globally. The potash value is forecast to extend by 48% in 2022, contributing to Saskatchewan’s sturdy financial outlook, the provincial authorities stated within the funds.
The Saskatchewan Celebration authorities, led by Premier Scott Moe, expects the removing of pandemic restrictions and power in potash, oil and gasoline costs, and exports to drive financial restoration. Saskatchewan expects deficits to proceed shrinking and stated it was on monitor for a balanced funds in fiscal yr 2026-27.
The funds assumes a median North American oil futures value of $75.75 per barrel throughout its fiscal yr, producing C$867.5 million in royalties.
($1 = 1.2558 Canadian {dollars})
(Reporting by Ismail Shakil in Bengaluru; Modifying by Mark Porter)
