The Saskatchewan government is forecasting a bigger deficit this year than it previously predicted. The provinces 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 its 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 Saskatchewans fiscal picture is strong and that the government plans to manage spending while investing in services. She says Saskatchewans real GDP grew by 1.6 per cent last year, the second-highest in the country.
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