Government of Saskatchewan
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       Monday, October 23, 2017
Minister of Finance
Highlights
Growth and Financial Security Fund Transfer
$900 Million in Interest Savings
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  • Putting $1 billion against debt reduction
  • Government has reduced debt by $2.6 billion or almost 40 per cent since fall 2007
  • Government debt forecast at its lowest level since 1988
  • Almost $900 million in interest savings projected over five-year period
  • Government plans to transfer $1.0 billion from the Growth and Financial Security Fund (GFSF) and allocate it to Government purpose debt.
  • Government purpose debt is expected to be $4.2 billion at March 31, 2009, a decline of approximately 38.4% from the balance of $6.8 billion at March 31, 2008.

 

Government Debt Reduced By Almost 40% in One Year

 

  • The commitment to debt reduction will be implemented by setting aside amounts in sinking funds.  These amounts are specifically dedicated to retire debt issues upon maturity.  The sinking funds earn interest revenue until they are needed to retire debt.
  • When the debt matures, the sinking fund is extinguished, the debt is repaid, and the Province benefits by incurring lower interest costs thereafter.

 

Government Total Debt
$Billions

Government Total Debt, March 31, 2008 $6.849100.00%
 Less: 2007-08 Surplus(0.641) 
 Less: 2008-09 Surplus(1.510) 
 Equals: First Quarter Report Forecast$4.698 
 Add: 2008-09 Surplus adjustment0.230 
 Add: Accrual accounting timing differences0.290 
 First Quarter Adjusted Debt5.218 
 Less: One-time contribution from GFSF(1.000) 
 Equals: Forecasted Balance, March 31, 2009          $4.218       61.60%

 

Commitments to debt reduction and investments fo the GFSF and General Revenue Fund are forecasted to generate almost $900 million in interest savings over a period of five years.

 

TOTAL GENERAL REVENUE FUND
Net Interest Cost: 2008-09 - 2012-13

 2008-09 2009-10 2010-11 2011-12 2012-13  Total
    $Millions   
Net interest cost at 2008-09 Budget $443 $418 $431 $447 $464 $2,203
       
 Revised interest expense and revenue      
      Interest expense 510 485 425 405 380 2,205
      Interest revenue* (140) (210) (185) (180) (180) (895)
      Net Interest cost 370 275 240 225 200 1,310
       
 Improvement                                     $73 $143 $191 $222 $264 $893

 

* Includes interest revenue from GFSF, Sinking Fund and General Revenue Fund cash balance.



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