Thursday, 10 September 2015 06:28

Sask. deficit is higher than reported

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It seems that the Wall government may be on its way to a record.
Recently, the Wall government announced that it may be on its way to a deficit of $292 million by fiscal year end. Umm… well sorry, but you really are not. You see, in the spring budget, the deficit was announced at $600 million but by borrowing $700 million, the budget was “erased”. Don’t you just love those smoke and mirror economics? Assuming this is likely another under-estimate, by my reckoning, the real year end deficit will be close to a billion. Would be some kind of record?
Premier Wall would become only the second Sask. Premier since Grant Devine, to run a billion dollar deficit.Having squeezed the Crown corporations for the last eight years for all they are worth, the Crowns can’t bail the Wall government out of this one. Worse, there are expectations that the world economy may be in recession for 2016 as well, reducing oil and potash revenues further. For five out of the eight years of the Wall government, oil and potash prices and export sales have been high.  If Wall had fulfilled his responsibilities as our public representative in the public arena, he would have raised royalty rates from fire-sale rates to a proper level of economic return for the owners (that’s us), the people of Sask. If you don’t raise royalty rates when prices and sales are high, when do you?
Tom Shelstad, Swift Current

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