Saskatchewan's mid-year report is showing that the province is in an even better financial situation than it budgeted for.

The original budget, posted in March, predicted a gradually shrinking deficit which would start this year at $462 million.

While none of the expenses have dropped significantly, the government's revenues have skyrocketed past what was predicted.

The new estimate has come with a billion-dollar surplus, with the increases largely coming from higher-than-expected natural resource prices and taxes.

A large part of this increase is due to a $1.4 billion increase in non-renewable resource revenue at mid-year over budget, reflecting higher potash and oil prices

Personal and Corporate Income tax revenue and PST revenue seem to be the main sources of higher tax revenue, with the government claiming that reflects a stronger-than-anticipated economic recovery.

While both raised over $1 billion extra for the budget, revenues were slightly dampened by a projected $481 million decrease in net income from Government Business Enterprises, primarily due to lower investment income and higher natural gas prices.

Expenses have risen due to a combination of factors - forecast to be $18.4 billion, up $286.8 million from the first quarter, or 1.6 per cent, and up $795.0 million (4.5 per cent) from the budget.

While individual sectors of expenses have tipped that upwards, a large part of the increase can be explained by the $450 million for the Saskatchewan Affordability Tax Credit payments to Saskatchewan residents, along with $200 million to increased Saskatchewan Crop Insurance expenditures.

At mid-year, Saskatchewan is forecasting a surplus of $1.1 billion for 2022-23, up from the first quarter forecast by $50.1 million, and a $1.6 billion improvement from the budget.

Saskatchewan's real GDP is expected to grow by 5.3 per cent in 2022 and 1.9 per cent in 2023, the highest growth among the provinces in both years.

"Saskatchewan is on track. International goods exports, investment in building construction, growth in wholesale trade and in manufacturing sales are all among the highest across the provinces so far in 2022," Harpauer said. 

Public debt is forecast to be $2.1 billion lower than projected at budget.