Article content

If a shaky global economy forces Saskatchewan’s finance minister to choose between deep cuts to core social programs and a deficit, she’s willing to go into the red.

“I don’t think that we would entertain major cuts in the priority areas of our social safety nets, healthcare and education,” said Donna Harpauer on Tuesday, just two weeks before she tables a provincial budget expected on March 18.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Sask. finance minister prefers deficit to heavy cuts if economy tanks Back to video

Balance would have to come second to those priorities if fears over a potential coronavirus pandemic continue to weigh on the global economy, she confirmed.

That comes as the U.S. Federal Reserve cut interest Tuesday rates to prop up growth. If such a move is copied in Canada, it could mean hundreds of millions of dollars more in pension liabilities for the provincial government.

Harpauer said such a deficit — which remains hypothetical — would only be “short term.”

A sustained downturn would force harder decisions down the road, however. Harpauer hinted that it could require the kind of back-to-balance plan Saskatchewan rolled out in the unpopular 2017-18 budget. But even then, Harpauer would try to limit the pain.