Saskatchewan forecasts a deficit of $ 349 million in the first quarter of 2025-2026.
The figure is a significant fall of Slim, the surplus of $ 12.1 million, the province projected as part of the 2025-2026 budget.
On Friday, the Minister of Finance, Jim Reiter, did not care about the new figures while talking to the media.
“It is a budget of $ 21 billion. Therefore, percentage is not huge, but it is still a significant amount of money. We are always worried [but] Our foundations are still strong, “Reiter said.
The official opposition criticized the update at an own press conference.
When the budget was presented in March, the Finance critic of the NDP, Trent Wotherspoon, put a copy of the document through a crusher to emphasize its distrust of it, something that echoed on Friday.
“We said from day 1 that this budget was not worth the role in which it was printed. All who look at the results here today will know that this is the case. The Sask part approved a budget that they knew that made no sense,” said Wortherspoon.
Reiter defended his government’s approach to the budget. He said that the update “underlines” the commitment of the provincial government to achieve a balance between affordability and invest in essential programs and services.
“We are about to enter the budget process. We are going to sharpen our pencils and look for places to save money, but at the same time we will not at the expense of medical care, education or the other services that people in Saskatchewan expect,” Reiter said.
Within the fiscal update
According to the fiscal update, the revenues of the province have decreased to $ 172 million to $ 20.9 billion.
Reiter said that the fall is due to a decrease in the net income of its crown corporations, including a decrease of $ 163 million in the net income of Saskpower, the main electricity provider in the province. According to the government, that is mainly due to the fact that the federal carbon tax is eliminated from customer invoices in the first quarter.
Reiter said that the province continues to discuss with Ottawa the elimination of industrial carbon prices from the electricity sector.
Income from non -renewable resources is also forecast that will decrease by $ 30 million compared to the budget due to the lowest oil prices and a higher exchange rate.
As part of the 2024/2025 budget, Saskatchewan projected $ 21 billion in expenses. That increased to $ 21.2 billion in the update of the first quarter.
The increase of $ 189 million is mainly due to an increase of $ 80 million to address forest fire costs and evacuation efforts, the province said.
The expense is expected to be addressed with a special order that will be launched on August 25. Forest fires continued in Saskatchewan during the summer, so the final figure could be even greater.
The provincial government has been repeatedly based on special orders, or injections of funds carried out outside the regular budget process, to “address cost pressures and respond to emerging problems.”
For example, $ 923.1 million were issued in special orders in February 2025 and $ 750 million were issued in special orders in February 2024.
Reiter defended the continuous use of special orders on Friday.
“Special orders still obtain a complete review through the democratic process and it is only a way to allow financing to continue providing the service,” he said.
The Government said there is also an increase of $ 115 million in its expenses as a result of the end of the year updates to the cases of pension accumulation.
The 2025/2026 budget did not influence the threat of tariffs of the United States or China and did not contain fees contingencies.
With the situation still fluid, and Canada announced changes in its policies on Friday, Reiter said it remains optimistic.
“We have to be flexible. We have to see how it is.
Reiter pointed to Saskatchewan maintaining the highest credit rating between the provinces when the grades of the three main agencies are considered.
Reiter also pointed out the debt relationship to Net GDP of Saskatchewan, which is projected to be 14.5 percent to March 31, 2026. That is an increase in the budget and the second lowest among the provinces of Canada, the government said.
