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Saskatchewan Finance Minister Kevin Doherty says the province is “on track with the budget we forecasted on March 22nd with respect to the $685 million deficit.”

When the budget was made, a $300-million contingency fund was built into it to act as a cushion against unexpected costs. Only a quarter of the way through the year, more than half of it is gone.

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Friday’s first-quarter financial update shows most of that — $125 million worth — will be used to offset compensation savings that will not be achieved this year; $250 million in savings were expected in March.

There was skepticism at that time the province would not be able to find $250 million in employee savings, largely because the province was locked into collective bargaining agreements with public sector unions unwilling to reopen contracts.

Speculation at the time was the $300-million contingency fund would cover the cost if the province’s plan failed.