A drop in anticipated potash revenue is being mitigated by surging oil revenue, Finance Minister Ken Krawetz says.

Although projected potash revenue is down, the Saskatchewan government says it's still on track to balance its books this year.

Saskatchewan Finance Minister Ken Krawetz released his mid-year financial update on Wednesday.

It showed revenue is down about  $34 million from the spring budget, due to relatively low potash prices.

However, potash revenue declines have been offset quite a bit by increasing oil revenues.

Crown debt is up compared to the budget, mostly due to SaskPower, which continues to replace aging infrastructure. 

Gross domestic product growth in 2013, which was forecast to be 2.6 per cent in the spring, is now expected to be 3.6 per cent, mainly due to record crop production.