New Democrats want legislature recalled over premier's deficit plan

The NDP is expressing concerns about Saskatchewan Premier Brad Wall's plans to run deficits for two years and wants to see the legislature recalled.

Wall said Monday that due to falling revenues, the province will have to go into deficit both in the current fiscal year and in the next fiscal year that begins April 1.

• RELATED: Saskatchewan will run deficit, Premier Brad Wall says

Normally, a budget would be introduced by then, but Wall's Saskatchewan Party government has opted to wait until after the April 4 election.

On Tuesday, Opposition New Democrat leader Cam Broten said Wall's plan is in violation of the province's balanced budget law, which requires the government to balance the budget every year.

There are exceptions to the Growth and Financial Security Act, but the government is required to open its books for complete transparency and lay out a plan to offset the deficit with a surplus in the very next budget year, Broten said.

He's calling on Wall to recall the legislature, discuss the fiscal situation and look at options. 

When last year's spring budget came out, the government was expecting to have a $107 million surplus. However, amid falling resource revenues, a $262 million deficit is now expected.

Broten has accused the Sask. Party of squandering the province's oil wealth during the boom years.

In response to Broten's comments, the government said in an email to The Canadian Press that the act applies to the general revenue fund, which was the government's operating expenses and revenues.

Saskatchewan governments used to put forward budgets based on the general revenue fund.

But several provincial auditors said that presented an incomplete and misleading picture of the government's finances because the general revenue fund does not include more than 270 Crown corporations and other agencies. Those are only included in the summary budget.

The Saskatchewan government changed its focus to a summary budget in 2014.

"There have been accounting changes, but if you look at the remarks of the Sask. Party finance minister in committee around this legislation, the spirit absolutely talks about the need to be open and clear with Saskatchewan people, to say what the true state is and we don't know," said Broten.

"We do not know how deep this hole is."

Wall told reporters that summary budgets have changed everything.

"It's our view that there's going to be no problem with the legislation," said Wall.

The government email also says if the Saskatchewan Party is re-elected April 4, it will amend the existing legislation to apply to summary financials. It would also change one-year deficits for unforeseen extraordinary events to two years.