REGINA—Saskatchewan Premier Brad Wall says his government is facing what he calls “serious revenue shortfalls” and will run a deficit this fiscal year and next.
Wall told the Saskatchewan Urban Municipalities Association that there isn’t much room for the government to make cuts.
He said that left two choices: raise taxes or run a deficit—and the government opted for the deficit.
Wall said the books will be balanced once again at the end of next fiscal year.
The province had already moved away from a projected surplus to a $262-million deficit when it presented a budget update last fall.
The finance minister said at the time his goal was still to balance the books, but warned that falling resource revenue was going to make that a tough challenge.