REGINA: The Canadian Taxpayers Federation (CTF) is calling for spending reductions in light of a razor-thin surplus forecast in the province's first quarter fiscal update.

The update forecasts a $62.5 million surplus which is $39 million less than expected - even though government revenues are up $73 million. Government spending is expected to be $112 million higher than budget, bringing total expenditures to $7.813 billion - the largest in Saskatchewan history.

"The government's spending binge threatens the province's fiscal health and well-being," said CTF Saskatchewan director David MacLean. "Our bloated budget may put the province back in budget deficits which means the province won't be reducing debt or lowering taxes as much as it needs to."

"By not limiting spending, the Saskatchewan government is squandering an opportunity to make progress on the provincial debt, which currently stands at $10.9 billion - not including pension liabilities and infrastructure deficits," MacLean added. "When revenues are at record highs, it's irresponsible to ignore the province's debt - which the Provincial Auditor has said poses a threat the province's financial security."

The Provincial Auditor's 2005 Volume 2 report showed government spending had increased by 26 per cent from 2001-2005, almost tripling the rate of inflation over that period.

"Sometimes in life we only get one shot to make things right, and right now Saskatchewan is not taking advantage of its good fortune," said MacLean. "If the government can't pay down debt when they've hit the jackpot, when can they "

The CTF continues to call for a legislated debt repayment schedule and laws designed to limit government spending growth.