It's so far, so good for the 2019/2020 budget.

The Government of Saskatchewan released the 2019/2020 Mid-Year report. It forecasts a surplus of $37.4 million, up to $3.0 million from the budgeted surplus.

Everett Hindley, the MLA for Swift Current, said that not only is the surplus a positive but also, they remain on track to maintain a balanced budget.

"That's what we think has been the right balance for the province of Saskatchewan. We think the balance is important," he said. "It allows for sustained investment to continue to the priorities that are important to Saskatchewan people weather it's healthcare, classrooms or support for seniors and those who are most vulnerable as well as infrastructure into a growing province. We are pleased with where things are, but always recognizing that there is still more work to be done."

Hindley said that several things led to the increased surplus, but an increase in resource revenue was one of the main contributors.

"It's largely due to revenue to oil and natural gas which is forecasted to be about nearly $46 million higher," he stated. "That increase is primarily due to a narrower light-heavy oil differential and a decrease in the average exchange rate Part of that as well is due to some slightly higher potash prices as well, but with that being said, that is offset a little bit by lower sales volumes. There is a little more coming from resource revenue, which is up from the budget, so that is part of the reason we are seeing a slight increase."

Revenue is forecast to be $15.4 billion—an increase of $329.3 million from the budget. Expense is forecast to be $15.3 billion, an increase of $326.3 million compared to budget.

"One of the highlights is that public debt is actually down $302 million from the budget," Hindley said when talking about other highlights from the mid-year report. "Saskatchewan has the second-highest credit rating in all of Canada. The province's net debt to GDP is forecasted to be among the lowest in the country.'

He said that despite the highlights, they do remain a little hesitant as things can change quickly in the budget.

"The outlook for our economy remains positive with some modest growth projected this year and strengthening into 2020. These are some of the right signs, and we are in the right direction, and we are cautious about this," he said. "$37 million isn't' a huge surplus, and we've had concerns in the past that could be wrapped up by I forest fire season, or crop insurance claims, and this has not been a great harvest, but we are going in the right direction."

Hindley added that despite challenges in certain sectors of the economy like global trade and a difficult harvest, 2019 is looking to be one of the strongest years for Saskatchewan in terms of employment and population growth.