Canada: Saskatchewan deficit climbs to $1.2 billion

Wall told delegates at the Saskatchewan Urban Municipalities Association convention in Saskatoon that in the wake of the deficit, there would be wage freezes for many years to come, www.winnipegfreepress.com reports said.

He told municipal leaders that curtailing payroll costs would be the only solution for the government to succeed in improving its financial situation.

As a result, the Saskatchewan government sent letters to all public employers cautioning them to keep watch on wages to avoid layoffs.

Wall also told delegates that they did not see immediate bounce back on revenues for non-renewable resource.

He added revenues from taxes was lower than forecast whereas crop insurance claims were higher due to a late harvest.

The government was reviewing PST exemptions and the education property tax structure to save money, said Wall.

Saskatchewan is a prairie and boreal province in west-central Canada, the only province without natural borders.

Saskatchewan is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, to the northeast by Nunavut, and on the south by the U.S. states of Montana and North Dakota.

(Reporting by Asha Bajaj)

(Image of Brad Wall: Wikipedia)