11/20/2012 05:09 EST | Updated 01/20/2013 05:12 EST

Saskatchewan finance minister says budget is still on track ahead of mid-year

REGINA - Saskatchewan Finance Minister Ken Krawetz (KRAH'-vetz) says the province faces some challenges because of a drop in non-renewable resource revenue.

But Krawetz says it's not the doom and gloom scenario painted by the Opposition NDP.

Krawetz says the mid-year budget update coming next week will show the decline in non-renewable resource money is being offset by other revenue, like taxes.

He says the update will also show that the budget is still balanced and has a surplus.

The government said in its first-quarter financial report in August that finances took a hit from a drop in oil revenue and Crown land sales, and that it was looking to reduce spending by about $55 million.

Krawetz says that's been done by ministries looking for savings, but no programs have been cut.