The First Quarter Financial Report released by Deputy Premier and Finance Minister Ken Krawetz shows that Saskatchewan remains on track to have the only provincial balanced budget in Canada in 2012-13.

A weak global economic recovery has fuelled volatility in commodity markets, reducing non-renewable resource revenue.

Overall, revenue is forecast to be down $113.2 million from budget, largely due to reduced revenue projections from oil and Crown land sales.

“While resource revenue can fluctuate over the course of an entire year, the overall strength of our economy coupled with our government’s commitment to sound fiscal management will ensure a balanced budget for the people of Saskatchewan,” Krawetz said.

To offset reduced revenues, the pre-transfer surplus will be reduced to $11.8 million and ministries will manage their expenditures to ensure efficiencies and savings are captured.

The government is looking to reduce spending by about $55 million - or about one-half of one per cent of overall government expenditures - through efficiencies and expense management within ministries.

“Our economy remains the envy of many other jurisdictions,” Krawetz said. “Maintaining a balanced budget is a big part of the Saskatchewan Advantage, and we’re committed to keeping our province on solid financial ground throughout 2012-13 and beyond.”