Saskatchewan now forecasting $354M budget deficit

The Saskatchewan government is forecasting a bigger deficit this year than it previously predicted.

The province's first-quarter financial report is projecting a deficit of $354 million this year, up from the $273 million it forecast in its spring budget.

It says it's a result of increased expenses across departments, including compensation costs under a new collective agreement with provincial employees.

It also says it received more revenues from fees, along with additional income from investments.

Finance Minister Donna Harpauer says Saskatchewan's fiscal picture is strong and that the government plans to manage spending while investing in services.

She says Saskatchewan's real GDP grew by 1.6 per cent last year, the second-highest in the country.

NDP slams Sask. Party over update

Meanwhile,NDP finance critic Trent Wotherspoon said the update is "further proof that [Premier] Scott Moe and the Sask. Party can't be trusted with our province's finances."

In a written statement, Wotherspoon said the government has failed to stick to its own financial forecasts for the better part of a decade.

He also criticizedthegovernment forsaying thatsettling contracts with unionized government employees was one of the factors in the higher deficit.

"This government wastes money hand over fist with ballooning IT contracts, out-of-province medical procedures at 10times the price, and expensive junkets, like Moe's million-dollar trip to Dubai," Wotherspoon's statement said.