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Yahoo
6 days ago
- Business
- Yahoo
With an eye to Saskatchewan's growing debt, expert sees 'stormy weather ahead'
That the Saskatchewan government posted yet another deficit is of no surprise to economics professor Keith Willoughby, but he says a critical eye reveals some trouble brewing on the horizon. On Monday, the government published its 2024-25 Public Accounts Volume 1, which details the province's finances and indicated a $249-million deficit, down from the $273 million-deficit projected in March. Willoughby, Dean of the Edwards School of Business at the University of Saskatchewan, had three major take-aways after reading it: the deficit is to be expected, the province is doing well compared to other jurisdictions but the increasing net debt per capita and net debt to the province's growth domestic product (GDP) needs to be addressed. 'I believe that there is some stormy weather ahead to which the province needs to pay special attention,' he said in an interview Wednesday. Net debt per capita is effectively a figure reached by taking the net debt carried by the province then dividing it by every single resident of the province. According the government's public accounts, each citizen is carrying a provincial debt burden of $12,500. 'If you look back a decade ago, it was about $7,000 per man, woman and child in the province,' said Willoughby. 'That speaks to some challenges that the province will need to address as we go forward.' Net debt per capita peaked in 2022 at $13,100 per citizen but the statistic is now trending up again. Coupled with a year-over-year uptick in net debt to the province's GDP coming in at 13.7 per cent, he said there are some headwinds being faced. Saskatchewan is still in a relatively good position compared to other provinces, with Manitoba's net debt to GDP forecast at 36.1 per cent in 2024 and Alberta's forecast at 7.6 per cent. 'How large do you want the debt to grow? Because if it gets unsustainable, in terms of the GDP or the people in the province, that puts the burden back on the taxpayers and citizens of this province,' he said. In an emailed statement, the government touted its position as the province with the second-lowest net debt to GDP in Canada. 'The Government of Saskatchewan continues to make investments that deliver on what the people of Saskatchewan have said is important to them – affordability, health care, education, community safety and fiscal responsibility,' read the statement. But not all debt is made equal. Spending on infrastructure, health care, education, etc. are touched on in the accounts document but for Willoughby, citizens should take stock of how the government's spending is impacting them in their day-to-day lives. 'Are we getting access to better services? Are our health-care wait times dropping? Are the roads improved? Are we seeing access to better services in terms of teacher contracts?' he said. When the province released its 2025-26 budget in March, a slim surplus of $12.2 was forecast. Oil trading well below projections, wildfire expenses, suspensions of the provincial output based carbon pricing regime and increased drought pressure throughout the province are all making the likelihood of that surplus low, argued NDP finance critic Trent Wotherspoon. According to the province, total revenues in 2024-25 were $20.9 billion, up $994 million from targets, in part due to $400 million from a national tobacco settlement. At the same time, expenses came in at $21.1 billion. Wotherspoon said without the settlement the deficit would have been $600 million, adding the province 'squandered' the settlement. 'They overspent by a billion dollars, they failed to balance the budget and failed to properly address the real, big challenges that Saskatchewan people face,' he said at a media availability Wednesday. Wotherspoon also took issue with the timing of the release of public accounts, which happened the day before the Canada Day holiday. He likened it to the recent release of Crown earnings reports. Historically, they are released in a staggered manner over the course of an entire week with opportunities for technical briefings and interviews with media at the legislative building. This year, all the reports were simultaneously on June 23 in Saskatoon. 'They don't like accountability, they don't like scrutiny,' said Wotherspoon. Scott Moe pauses Saskatchewan carbon tax, promises balanced budget despite $431.5M revenue loss 2025-26 Sask. budget: Province forecasts $12.2M surplus, no contingency fund for Trump's U.S. tariffs alsalloum@ The Regina Leader-Post has created an Afternoon Headlines newsletter that can be delivered daily to your inbox so you are up to date with the most vital news of the day. Click here to subscribe. With some online platforms blocking access to the journalism upon which you depend, our website is your destination for up-to-the-minute news, so make sure to bookmark and sign up for our newsletters so we can keep you informed. Click here to subscribe.
CBC
13-06-2025
- Business
- CBC
P.E.I. auditor general says province will have to face some tough decision as debt keeps soaring
Prince Edward Island's net debt is closing in on $3 billion, the highest level in the province's history. 'The only way to bring it down is to address it through increased taxes or decreased spending,' says auditor general Darren Noonan. 'It's a tough thing for politicians to have to do.' CBC's Wayne Thibodeau has more details.
CBC
12-06-2025
- Business
- CBC
'Not here to scare people,' but P.E.I. watchdog raising alarm bells about historic debt levels
Social Sharing P.E.I.'s auditor general says the province's net debt, the highest in the province's history, is unsustainable. Darren Noonan told MLAs the net debt is closing in on $3 billion, or nearly $15,000 for every single person in the province. He said if the current trend continues, that net debt could hit $5 billion in the next five years. Noonan says the province may need to make some tough decisions soon. "I'm not here to scare people, but I'm here to let people know that we have to start thinking about this. It has to be paid at some point," P.E.I.'s financial watchdog said in an interview with CBC News. "Our net debt continues to grow… The only way to bring it down is to address it through increased taxes or decreased spending. It's a tough thing for politicians to have to do." The auditor general was speaking as the legislature's public accounts committee met this week. This is not the first time Noonan has raised concerns about the province's mounting debt, prompting provincial officials to describe his comments as "alarmist." "I wasn't offended at the word 'alarmist,'" Noonan told MLAs at the committee meeting. "In fact, if you have to be a bit alarmist to get some attention to it… that's what it takes." In a statement, the Department of Finance said it works to ensure the province can manage its debt levels and agrees that it is important to monitor the province's debt. However, it added, "fiscal planning is complex, and it is necessary to balance a number of perspectives and factors, including Islanders' needs and being prudent financial stewards while monitoring today's uncertainties." 'We're spending money that we don't have' Liberal MLA Gord McNeilly, who chairs the public accounts committee, said these debt levels are accumulating while the province is getting record transfers from the federal government. He said the province has to control its spending. "We're spending money that we don't have," McNeilly said. "All Islanders should be concerned about this." Green Party Leader Matt MacFarlane said the more the province has to pay to service the debt, the less money it will have to deliver programs and services. "It means that we're losing programs and services and capital infrastructure that we could be having, simply because the debt is growing and growing and growing," MacFarlane said in an interview. We need the infrastructure, we need the repairs to our hospitals and schools, but what's the cost that's going to come at?... We're going to have to cut programs that we've come to rely on. — Green Party Leader Matt MacFarlane "We need the infrastructure, we need the repairs to our hospitals and schools, but what's the cost that's going to come at? It's either going to come at increased debt, which we're going to have to keep passing on to future generations to pay… or we're going to have to cut programs that we've come to rely on – social programs – and we can't do that either, really. "It's a tough position that we're in right now." Interest costing more than corporate tax brings in Noonan highlighted some other troubling trends as well. He said P.E.I.'s economy is more dependent on government spending than the economy of any other province in Canada; the province is the most dependent on federal funding; and interest charges have hit a record high of $165 million, or 5.5 per cent of total revenues. "One of our significant sources of revenue for the province is corporate income tax, and last year, we took in $157 million in corporate income revenue. Our interest expense was over $160 million," the auditor general pointed out. Noonan said the government's record-breaking capital spending is also a concern. His office reviewed eight "significant" capital budget projects, comparing the original budget to the actual completed cost in the last three fiscal years. Those projects were completed at a cost nearly 50 per cent above the amounts originally budgeted, and some were nearly 80 per cent over budget. The five-year capital plan for fiscal years 2020 to 2024 included total spending of about $610 million, but the actual capital spending over the period amounted to more than $1 billion. Noonan said his office intends to keep digging deeper into the capital spending, to find out why so many of these projects are going over budget. "There's been a lot of discussion about investment but there hasn't been any discussion on repaying the debt or how we're going to pay it back," Noonan said.
Yahoo
16-05-2025
- Business
- Yahoo
LT Foods Ltd (BOM:532783) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...
Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LT Foods Ltd (BOM:532783) reported a strong quarter with an 8% increase in revenue, reaching INR 2,260 crore, driven by increased sales in the Basmati and specialty rice segments. Gross profit grew by 20%, with gross profit margins expanding by 370 basis points to 36.6%, attributed to favorable input prices. The company has expanded its product portfolio to include ready-to-eat and ready-to-cook meal options, healthy snacks, and organic foods, catering to modern dietary preferences. LT Foods Ltd (BOM:532783) has undertaken major expansion projects in the UK and entered high-potential markets like Saudi Arabia. The company maintains a strong market position in the US with its Royal brand, holding more than 55% market share in both mainstream and ethnic channels. Despite the increase in gross margins, EBITDA margins only saw a marginal increase of 30 basis points, indicating higher operational costs. Logistic costs have impacted margins, with a 1.7% increase, and advertising expenses are expected to rise further. The return on equity decreased from 19.2% in the previous year to 16.8% in the current financial year. The net debt to equity ratio increased from 0.1% to 0.2%, indicating a rise in leverage. The company's growth in Europe was slow, with only a 2% increase in Q4, partly due to the separation of UK operations. Q: Can you explain the discrepancy between the improvement in gross margins and the limited increase in EBITDA margins? A: The CFO explained that the logistics cost increased by 1.7%, advertising expenses rose by 0.4%, and administrative costs went up due to the capitalization of a facility in the UK. These factors contributed to the limited increase in EBITDA margins despite improved gross margins. Q: Are there any expected reversals in the factors affecting margins in FY26? A: The CFO mentioned that logistics costs are expected to normalize, but advertising expenses will increase as the company plans to spend more on consumer-side advertising. Overall, margins are expected to maintain or slightly improve. Q: Can you provide details on the acquisition of Global Green Group and its potential impact? A: The CEO stated that the acquisition involves a canned food business with good synergies. While details will be shared after the definitive agreement is signed, the acquisition is seen as a good opportunity for growth. Q: Why has growth in Europe been slow, and what are the cost percentages of revenue for Q4? A: The CFO clarified that Europe is not slow; the apparent slowdown is due to the separation of UK operations from Europe. The cost as a percentage of revenue for Q4 is 5.8%. Q: How does the company plan to handle potential US tariffs on Indian imports, and what is the impact of a possible US recession? A: The CEO stated that there is no expected impact from US tariffs due to lower material costs. Historically, during recessions, home consumption in the US increases, which could benefit the company. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ABC News
13-05-2025
- Business
- ABC News
Live moment: NT debt approaching record $14b by 2029 as CLP delivers first budget
The Northern Territory's net debt will reach more than $12 billion next financial year, with the budget forecasting a further increase to nearly $14 billion by 2029. The Country Liberal Party government's first budget has revealed a deteriorating fiscal position for the territory, which has a population of around 255,000 people. The budget shows the government will have to borrow $265 million to fund its day-to-day operations next financial year, and another $101 million in 2026-27. When infrastructure funding and the financial performance of government corporations are added to the bottom line, the government will run a fiscal balance deficit of $1.3 billion in 2025-26. Overall, the NT's net debt will rise from $10.5 billion this financial year, to more than $12 billion in 2025-26. By 2028-29, the net debt is forecast to hit almost $14 billion. NT Treasurer Bill Yan said the budget "puts crime victims first, prioritises law and order and begins the long task of repairing Labor's mess". Big spends include an additional $305 million for the beleaguered Darwin ship lift project, on top of $515 million already budgeted.
