The 2018 financial crisis hit the Canadian economy like a ton of bricks. And it has been a difficult journey for some of the country’s biggest provinces to recover from the effects of the crisis. None of the provinces have been able to recover completely. But some of them are doing much better than others.
Saskatchewan, like Alberta and Ontario, was a victim of the financial crisis. And, like Alberta and Ontario, it is still in the process of fully recovering from the crisis. But, unlike Alberta and Ontario, it is successfully on the path of recovery. It has managed to keep its deficit under control. It also has a plan to successfully curtail the deficit that doesn’t involve borrowing or more taxes.
Cost cutting measures
As of now, the province’s deficit stands at around $1 billion. Although the economic situation in Saskatchewan is much better than Alberta or Ontario, the government isn’t willing to take anything for granted.
And the path ahead, for Premier Brad Wall, and his cabinet is crystal clear. The provincial government doesn’t want to impose any new taxes on the people of Saskatchewan, like Ontario is constantly doing. It doesn’t want to borrow from external sources, like Ontario wants to. Instead, it wants to get rid of the deficit by cutting down government spending.
The public sector
As part of the broader plan to cut costs, the government has issued a directive to the public agencies to cap their upcoming budgets when it comes to compensating government employees. Among some of the measures the government has suggested is a potential freeze on wage increases, increments, or bonuses.
It is also planning to collaborate with the unions and employers to find ways to reduce the costs of employee compensation. The finance minister informed the media that the consultations on the cost reduction measures will begin soon. Saskatchewan, on the whole, is gearing up for a financial recovery.