Saskatchewan’s budget roller-coaster

The recent easing of commodity prices could take an C$80 million bite out of Saskatchewan government oil and natural gas revenues for the 2005-06 fiscal year.

Based on a third-quarter update, the province now expects to collect C$1.39 billion, down from the C$1.47 billion mid-year forecast, although the latest tally is still ahead of the original budget projection.

Gas royalties are now on track for C$270.4 million, compared with the mid-year forecast of C$314.8 million and the initial budget which pegged revenues at C$191.4 million.

Oil royalties are not predicted to hit C$1.116 billion, off C$46 million from the mid-year report, but well ahead of the budget guess of C$656.3 million.

These fluctuations merely reflect the difficulty of trying to estimate resource revenues, said a spokesman for the Department of Finance.

—Gary Park