Government of Saskatchewan Releases 2024-25 Mid-Year Report

CANADA, November 29 - Released on November 28, 2024

The Saskatchewan economy remains strong, but inconsistent weather during the growing season negatively impacted the province's crops and the mid-year financial position.

Although weather conditions were good early in the season, very dry conditions in many regions of the province during the summer significantly impacted crop yields and quality, particularly with canola. These fluctuations led to higher crop insurance claims, increasing the Agriculture expense theme by $385 million, or 25.1 per cent, from the 2024-25 budget.

"Agriculture is an essential element of our provincial economy and plays an important role in the history of our province," Deputy Premier and Finance Minister Jim Reiter said. "When we face years with adverse growing conditions, it is important that we have programs like crop insurance to protect this important industry.

"Crop insurance was designed to help protect the agriculture sector from circumstances beyond their control, and that was certainly the case with the dry conditions we experienced this past summer. However, it is important to note that producers help fund the crop insurance program through the premiums they pay into it." 

The 2024-25 Mid-Year Report forecasts a deficit of $743.5 million at mid-year, an increase of $470.4 million from budget.

Overall, total expense is forecast to increase by $745.5 million, or 3.7 per cent, from budget. 

In addition to increases related to the unfavourable weather conditions on the province's crops, the Protection of Persons and Property expense theme increased $128 million, primarily due to operating pressures in correctional facilities and wildfire response efforts. The Health expense theme also increased $100 million to address service and volume pressures.

Partially offsetting the expense increase, total revenue is forecast to increase by $275.1 million, or 1.4 per cent, from budget.

The largest areas of growth are in the Other Own-Source and Taxation revenue themes. Other Own-Source is forecast to increase by $235.5 million compared to budget due to improvements across this category, including increases in investment and insurance income. Taxation is also forecast to increase by $133 million, primarily due to an increase in corporate income taxes. This increase is a result of larger than anticipated 2023 tax assessments, which were supported by the province's strong economy.

Total gross debt at mid-year is forecast to be $35.2 billion, an increase of $388.5 million from budget, but a $12.3 million decrease from the first quarter. The increase in gross debt is entirely attributable to the self-supported or Crown sector, as reported in the first quarter.

Despite the change in debt, Saskatchewan's net debt-to-GDP ratio is projected to be 13.9 per cent at the end of the 2024-25 fiscal year. This is an improvement over the budget projection of 14 per cent, and the second-best net debt-to-GDP ratio among all provinces.

At mid-year, the Saskatchewan economy continues to perform well. Population and employment growth remain strong, while the province also had the second-fastest growing economy in the country in 2023, as measured by growth in real GDP at 2.3 per cent. 

For further information, the 2024-25 Mid-Year Report is available at saskatchewan.ca.

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