Province aims to break even on pot sales, holds off on revenue projection

The province is calling this year a "a trial year" for pot revenues, opting not to project revenues or expenditures in anticipation of the legalization of marijuana.

"We're not looking at it as a revenue stream for the province," Justice Minister Don Morgan told reporters Wednesday following the release of details on the province's cannabis legalization framework. "We're looking at it as a cost-recovery."

Currently, there are too many unknowns with enforcement and operation costs, while it's difficult to predict the volumes that would be sold, he said. 

"So this year is somewhat of a trial year and we'll watch as it goes forward."

During question period, Sask. NDP justice critic Nicole Sarauer charged that the government was being "far from transparent" about how they would spend money received from the sale of cannabis, and that municipal and band leaders would be the ones bearing the costs of legalization.

But, University of Regina economics professor Jason Childs acknowledged there is a lot of uncertainty in how things will roll out, particularly in anticipating how big the pot market might be.

"It's this big question mark. How do you budget for that level of uncertainty?" he said.

Childs points out other unknowns include the price point for pot, and seeing if– and how legal sales may divert money from the black market.

There is a real risk that pot could cost provinces more than they make, depending on how they regulate the industry, he said. However, he doesn't believe that would be the case in Saskatchewan, pointing out the province is allowing the private sector to operate cannabis sales.

"They're the ones that are carrying the risk and the financial cost."