As global instability and trade woes lead to deficit budgets across Canada, Saskatchewan has proved it is no exception — reporting an $819 million deficit for 2026-27.

Titled “Protecting Saskatchewan,” Finance Minister Jim Reiter wasted no time in identifying the main stress point facing all provincial governments — a more hostile and uncertain world.

“What keeps me up at night in the whole budget process is just the absolute volatility of world markets,” Reiter told reporters Wednesday morning.

More pressure on finances means expenses outpacing revenue. In the budget, the province reported $21.41 billion in revenue and $22.23 billion in expenses — leading to the shortfall of $819 million.

The delivery of a deficit budget was widely expected and even confirmed last month in comments made by Premier Scott Moe. Prior to budget day, the question was whether Saskatchewan’s financial outlook would be as deep in the red as Alberta and B.C., which recently tabled deficits totalling $9.4 billion and $11.2 billion respectively.

“I don’t think we really had the other provinces [in mind],” Reiter said. “It was about doing what’s right for Saskatchewan — keeping the deficit as low as we could, without increasing taxes to citizens, without cutting back services, and I think where we landed is a pretty reasonable spot.”

Provincial deficit represented per capita

• Saskatchewan: $641
• Alberta: $1,864
• British Columbia: $2,340

The province’s overall debt is certainly increasing this fiscal year. According to the budget, Saskatchewan’s gross debt has increased from $38.3 billion last year to $43.5 billion — a $5.2 billion rise marking the sharpest spike seen in recent years.

Since 2021, increases to the gross debt have ranged from $2.2 billion to $3.5 billion.

Saskatchewan Gross Debt

2026-27

• $43.5B + $5.2B

2025-26

• $38.3B +$3.5B

2024-25

• $34.8B +$2.2B

Price of Oil

Volatile global markets also mean rising prices. This can aid a province that depends heavily on exports like Saskatchewan — certainly a factor when it comes to oil.

Within the budget, the province estimated its oil revenue at the benchmark of $59 per barrel. The current conflict in Iran has led to skyrocketing oil prices. As of Wednesday morning, West Texas Intermediate (WTI) was valued at $98 per barrel.

When asked if inflated oil prices would take a large bite out of the reported deficit, Premier Moe told reporters it wasn’t something the government could count on. He pointed to other cases, such as the collapse of oil prices in 2020 and the spike in prices after Russia’s invasion of Ukraine in 2022.

“When I had gotten on a plane to go on a trade mission to India, the oil price in this province was under $60 a barrel. When I got back to Canada, it was nearing $100,” he recalled.

“That’s how quickly things can change.”

Vacancy reviews

A notable detail in the budget was the province’s vow to “operate within its means” in the form of managing the size of its workforce through attrition.

Over the next two years, positions left vacant by retirements and voluntary departures will be reviewed. The process will allow the province to “right-size” its workforce by three per cent without eliminating “filed positions or compromising front-line services.”

“Attrition is the keyword,” Reiter explained. “We’re not going to be handing out pink slips. This is if somebody retires. This is if somebody willingly leaving their position to go somewhere else — and then we’re going to put just a more critical eye than maybe has been done in the past.”

Cost of living

Saskatchewan NDP Leader Carla Beck was quick to characterize the budget as not doing enough on the issue of affordability.

“I think it’s going to be painfully clear to the people of this province that there’s absolutely nothing in this budget to help people who are already struggling with the cost of living,” Beck claimed.

In their remarks Wednesday morning, Reiter and Moe pointed towards the government’s four-year plan to cut income taxes and other related tax credits and supports.

“These tax cuts, combined with indexation, are providing about $200 million in tax savings this year, meaning a family of four pays no provincial income tax on the first $65,000 of income,” Reiter explained.

“That’s the highest tax-free threshold in all of Canada.”