Sask. budget update shows $600M less in revenue

Saskatchewan'sfinance minister says the governmentmight have to rethink election promises in light of a greater revenue shortfall than anticipated.

Finance Minister Kevin Doherty says he expects revenues to be down another $600 milliondue to less money raised from taxes and non-renewable resources.

We are prepared to look at those programs that we promised to the people of Saskatchewan.- Kevin Doherty, Saskatchewan's finance minister

In June, the government predicted a $434-million deficit. At the time, Doherty tabled a budget that includedspending $14.46 billion and projected revenues of $14.02 billion in the fiscal year ending March31, 2017.

Since then, he has foreshadowed a worsening financial picture, although he has not been specific about how much larger the deficit could be.

• Finance minister tables deficit budget
• Deficit will be higher than $434M originally forecast

Doherty says the deficit will be offset somewhat by higher-than-expected revenues from the federal government, for such things as disaster assistance payments, crop insurance and a one-time transfer of dams along with compensation for maintaining them.

However, he says tough decisions will still need to be taken, including re-examining some campaign promises.

"We are prepared to look at those programs that we promised to the people of Saskatchewan," Doherty told reporters on Wednesday.

"If we determine that we can suspend them or even stop them altogether for a period of time that's what we're prepared to do," he said.

• 'Everything's on the table': Finance minister looking to future budgets

Thegovernment has already been talking about so-called "transformational change" to address its financial situation, from amalgamating school divisions and health regions to re-thinking tax exemptions.

The Opposition's finance critic, Cathy Sproule, says the government knew the financial situation was much worse than it had been saying.

"They refused to disclose it before the election, they projectedrosy numbers in the budget that was presented June 1, and I think it's a complete letdown to the people of Saskatchewan to not be more forthcoming about what they knew," she said.