Saskatchewan government says budget on course to record $427M deficit at year’s end

This year’s Saskatchewan budget is sinking deeper into the red, mainly due to the cost of fighting the summer’s wildfires.

Finance Minister Jim Reiter, in a midterm update on the budget, says the projected year-end deficit is expected to be $427 million.

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It’s a major swing from when the budget was introduced in the spring.

At that time, Premier Scott Moe’s government was projecting a $12-million surplus, but in August the bottom line was revised to a $349-million deficit before sinking further in the latest update.

Along with forest fire costs, the province is spending more on health care.

Total exports have also fallen by $1.4 billion because of lower oil and gas prices while tariffs from China and the United States have had marginal effects.

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

“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.”

The province is forecasting net debt to be $39.8 billion by the end of this fiscal year, an increase of $962 million or 2.5 per cent.

Reiter says Saskatchewan’s economy remains resilient in the face of global uncertainty, with most products compliant under Canada’s trade agreement with the United States and Mexico.

This report by The Canadian Press was first published Nov. 25, 2025.