Saskatchewan expects to run deficits until the end of the decade, according to the 2026-27 provincial budget tabled by Finance Minister Jim Reiter on Wednesday.
The estimates are headlined by a projected $819.4-million deficit in the upcoming fiscal year and a newly forecasted $1.21-billion deficit for last year.
The province says it is targeting a return to the black in 2030-2031, when it projects a $124.1-million surplus driven by “sustained economic growth,” program adjustments and a reduction in the provincial workforce through attrition and not filling vacant positions.
“We are not going to be going and handing out pink slips. This is if somebody retires or is willingly leaving their position to go somewhere else,” said Reiter. “This doesn’t affect face to face with the public.”
The government is targeting a three per cent reduction in executive government and across Crown corporations. It hopes to get rid of approximately 300 positions in each over two years.
Saskatchewan Finance Minister Jim Reiter unveiled the title of the 2026/2027 provincial budget on Tuesday. (Alexander Quon/CBC)
Titled “Protecting Saskatchewan,” the budget echoes a refrain that Premier Scott Moe and Reiter have repeated in the weeks before the budget — no tax increases or service cuts.
The province is keeping the small business tax at one per cent, spending $17.5 billion on capital projects over the next four years and promising the largest expansion of nurse practitioners in provincial history through its Patients First Health Care Plan.
The budget appears to be Reiter’s attempt to go a different path than other provinces. In recent weeks, Alberta, British Columbia and New Brunswick have tabled record-breaking or near record-breaking budget deficits. While Saskatchewan’s deficit projection is large, it’s nowhere close to the record $2.4-billion deficit projected in the province’s 2020-2021 budget.
Opposition NDP Leader Carla Beck blasted the Saskatchewan Party for failing to provide inflation relief and still delivering a deficit budget.
“There’s nothing to offer a hint of hope or relief to those families that were already struggling,” she told reporters.
She said that under Premier Scott Moe, Saskatchewan has accumulated three times the debt it did under former premier Brad Wall and twice as much as under former premier Grant Devine.
Beck suggested a temporary suspension of the provincial gas tax as the price of gasoline has skyrocketed in response to the war in the Middle East and the province has been reaping “windfall royalties.”
Beck also criticized increases to hunting and fishing licences and to power rates and automobile insurance deductibles.
Putting the budget in context
The latest update to last year’s fiscal budget, tables alongside the new budget, paints a stark financial picture.
The province is forecasting a $1.2-billion deficit by the end of the 2025-26 fiscal year. That’s down from a forecasted surplus of $12 million in the 2025-26 budget and a $427.4-million deficit in the mid-year update.
The province’s expenses grew by $970 million from budget projections, driven by the response to wildfires and “increased human services demands.”
The province is projecting $21.4 billion in revenue in the coming fiscal year. That’s a $361-million increase, or 1.7 per cent, from the 2025‑26 Budget.
Reiter said the bump is primarily driven by increases to the provincial sales tax and federal transfers.
The province is also projecting $22.2 billion in expenses, a $1.2-billion or 5.7 per cent increase, compared to last year’s budget.
That’s due to increasing program costs and population growth, Reiter said.
As the province’s debt increases, so does the cost of financing it. Debt-related charges are climbing by $161 million, or 15.2 per cent, to $1.2 billion. That represents about 5.5 per cent of total expenses.
Opposition finance critic Trent Wotherspoon slammed the Saskatchewan Party for last year’s incorrect forecast of a $12-million surplus. He also pointed out that the government pledged to balance the budget by 2027 in the last election campaign, and that has now been bumped to 2031.
“You can’t trust them with their budgets, you can’t trust them with our public finances,” Wotherspoon told reporters.
Natural resources and budget volatility
The volatility caused by the province’s reliance on natural resource revenue is on display in this year’s budget.
The province’s non-renewable resource revenues are projected at $2.6 billion, down $132 million from last year’s budget. That represents 12 per cent of total revenue, below the 15 per cent the province deems as “prudent and sustainable for fiscal planning purposes.”
The province is projecting decreased oil revenue, partially offset by higher potash revenue and stable uranium revenue.
The budget predicts the average price of West Texas Intermediate (WTI) oil over the year to be $59.75 US per barrel.
That’s below the projection used by Alberta in its 2026-27 budget, which pegged WTI at $60.50 US.
Reiter says the difference in projections is not necessarily a surprise, as wild swings in oil prices due to conflict in the Middle East have made projections difficult.
Over the course of Tuesday, WTI fluctuated between $94 US and $98 US per barrel.
The budget says a $1 US change in the per-barrel price can affect the province’s oil revenue projections by $16 million.
Meanwhile, a $0.01 US change in the Canadian and American exchange rate can affect non-renewable resource revenue by $44 million.
“These variables underscore the significant influence of external conditions on Saskatchewan’s nonrenewable resources revenue,” the budget reads.
Premier Scott Moe discusses his government’s 2026-27 provincial budget on Wednesday. (CBC News)
Justice
The province’s spending on the Ministry of Justice is dropping by $2 million, to a total of $269 million. The province is focusing on a more accessible court system through the hiring and appointment of new positions.
The province says it will appoint four new Court of King’s Bench associate judges. They will be responsible for specific civil and family matters to help reduce the judicial workload and resolve cases faster.
It will also appoint three new provincial court judges to help address rising caseloads and reduce reliance on temporary relief judges.
Six new justices of the peace will also be appointed to provide independent adjudication of major inmate discipline hearings in the province’s correctional centres.
Finally, the province will appoint two new Crown prosecutors to specialize in complex provincial immigration and taxation cases.
Social Services
The province is increasing its social services budget by $71.9 million, for a total of $1.69 billion.
Saskatchewan Income Support (SIS) and Saskatchewan Assured Income for Disability (SAID) users will see a two per cent increase starting in May.
SAID residential support benefits for families that care for their loved ones at home will increase by 30 per cent over the next three years.
The provincial government is also providing a new one-time-per-household $1,000 utility arrears recoverable benefit to prevent evictions. With $400,000 earmarked for the fund, a maximum of 400 households can benefit from the program.
The province is also funding an additional 40 shelter spaces, split between Regina and Saskatoon.
Health
The Ministry of Health is receiving $8.47 billion in this year’s budget, an increase of $393.4 million over last year.
Much of the province’s health spending is targeted at the recently announced Patients First Health Care Plan.
The Saskatchewan Health Authority will receive $5.15 billion to advance the province’s patient first plans and improve access.
One of the new announcements included in the budget is $2.3 million to establish a Regina-based multiple sclerosis clinic. It’s not clear when it will be operational, but the goal is to provide a comprehensive outpatient program in southern Saskatchewan.
The province is also spending $1.9 million to establish dedicated hospital public safety teams in Regina, Saskatoon and Prince Albert. The goal is to expand on-site security in response to rising violence and disruptive behaviour.
NDP Leader Beck mocked the overall increase in health spending as a “piddly 0.3 per cent increase” over last year and said it will fail to stem the closure of emergency rooms throughout the province.
Mental health and addictions
The budget includes $673.7 million to address mental health and addictions, an increase of $49 million from last year.
The province says $10.8 million of the increase will help the province reach its goal — first announced in 2023 — to add 500 addiction treatment spaces by March 2027.
The province is spending $2.7 million to establish complex needs facilities in North Battleford and Prince Albert.
It will also establish a six-bed secure youth detox site at the Calder Centre in Saskatoon.
The province has also said the additional funding will help it “operationalize” the first phase of its involuntary treatment program, which was first introduced last fall. That will include the creation of “compassionate intervention treatment centres,” which will hold people under the Compassionate Intervention Act.
It’s not clear how many spaces will be created this year or where they will be located.
Education
The Ministry of Education is getting a two per cent increase, bringing its total to $3.6 billion.
Saskatchewan will create 50 new specialized support classrooms in schools across the province. That will bring the total number of these classrooms to 108 across all 27 school divisions.
The province has also announced planning for three new major capital projects:
- A new joint-use middle/high school in Martensville-Warman.
- A new pre-k to 12 school in Shellbrook that will consolidate and replace the existing elementary and high schools.
- A major renovation to Esterhazy High School.
There is also $20 million in new money for the province’s relocatable classroom program.
Post-secondary
The provincial government has confirmed a new multi-year funding agreement with Saskatchewan’s post-secondary institutions.
Operating funding is set to increase by $33.6 million in the upcoming fiscal year, part of the $250 million in funding over the next four years.
The government says all of the province’s institutions have committed to limiting tuition increases to a range of zero to three per cent.
Saskatchewan is also expanding its training capacity for health care, with 20 new seats for doctors and 26 for new nurse practitioners to become available in the 2026-27 academic year.
