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“It’s a little bit lower than we projected because of the timing of how it applied to insurance as well as the grandfathering of construction projects, so it’s still a significant contribution to this particular revenue (item),” said Harpauer, who pointed out total taxation revenue is still projected to be about $245 million more than the previous year.

Sproule said the province should have been better prepared when it announced the changes to the PST.

There are signs of optimism in the non-renewable resource sector sprinkled throughout the government documents outlining the mid-year finances, such as increased drilling activity and higher production.

But very little of that positivity is being seen in actual revenue projections, which is now expected to drop $24.1 million and generate about $1.4 billion.

“The optimism in the oil industry in particular is… the considerable increase in the number of wells that are being drilled,” said Harpauer.

While the volume of oil being produced is positive, its selling price is less so. The price of WTI oil was projected to be $56.25 per barrel in March, but has now been dropped to $50.25.

Such volatility in the non-renewable resource sector is one reason why, according to Harpauer, the province is “trying to shift our finances towards something more stable” in the form of increased revenue from taxes.

“What we’re seeing here is a government that is not making any headway at all on a $650-million projected deficit, and that’s disappointing,” said Sproule.

dfraser@postmedia.com

Twitter.com/dcfraser