‘Economy remains resilient,’ Sask. finance minister says about fiscal update

The Saskatchewan government is forecasting a deficit of $427 million at the mid-year point, but says its economy remains one of the best-performing provincial economies in Canada.

The province, which issued its 2025-26 Mid-Year Report on Tuesday, said the numbers mark a $79 million deficit increase from the first quarter. The deficit also represents a sharp drop compared to a surplus of $12 million projected in the 2025-26 budget.

“Saskatchewan’s economy remains resilient in the face of global economic uncertainty,” said Finance Minister Jim Reiter.

“The vast majority of Saskatchewan’s exports are CUSMA-compliant, and our producers have worked hard to find new markets, which has helped Saskatchewan remain in a comparatively strong economic position.”

Reiter said Saskatchewan has the lowest deficit per capita of all provinces, as well as the federal government.

The report forecasts an increase in expenses of $521 million, 2.5 per cent higher than projected in the budget. Among the notable increases is an extra $295 million for the Saskatchewan Public Safety Agency to support the battle against wildfires this summer.

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Saskatchewan’s total revenue is also forecast to increase by 0.4 per cent, or $82 million. The province said revenue increases are being offset by a reduction in SaskPower’s income, mainly caused by the elimination of the federal carbon tax from customer bills.

“Today’s mid-year update is very much in line with what we saw at first quarter,” Reiter said.

“Our government is committed to supporting those affected by this year’s unprecedented wildfire season, addressing pressures in health care and providing affordability relief through the income tax reductions contained in the budget and the removal of the carbon tax from SaskPower customer bills.”

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The province said Saskatchewan has an anticipated GDP growth of 1.7 per cent in 2025, ranking it third among provinces in Canada, and building on last year’s growth of 3.0 per cent.

The full report can be seen at the province’s website.

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