Although the Government of Saskatchewan’s 2025-26 budget forecasts a $12 million surplus, the finance minister says prolonged tariffs could push Saskatchewan into a deficit.
Jim Reiter presented the financial plan in the Saskatchewan Legislature on Wednesday. He attributes the balanced budget to increased corporate income tax and federal funding, PST, and uranium resource royalties. Even larger surpluses are expected in the coming years, with $75.8 million extra in 2026-27, $143.9 million in 2027-78, and $216.7 million in 2028-29.
Unlike several other provinces, Saskatchewan’s budget did not include any tariff-specific contingency funds. Reiter explains that because the tariff situation is ever-changing, it didn’t make sense to include measures that could be rendered useless in several months, weeks, or even days.
“You’ve seen some other provinces include contingencies in their budgets, however these contingencies are not surpluses that are set aside. They are even larger deficits that would be funded by borrowing.” Instead, Saskatchewan has chosen to rely on responsible spending and a strong fiscal outlook to weather any blows dealt by its trading partners.
Like promised in the Sask. Party Government’s election campaign, Reiter says the budget delivers on five main priorities: healthcare, education, policing, affordability and fiscal accountability.
Healthcare
According to the new budget, the Ministry of Health has been given record-high funding for 2025-26, answering the calls of many.
“This year, the Ministry of Health will receive a record $8.1 billion, an increase of $485 million, or 6.4 per cent,” Reiter explained.
He says the funding will reduce surgical wait times, reestablish full service at Saskatoon City Hospital, allow for more timely access to primary care, and attempt to connect all Saskatchewan residents with a primary healthcare provider.
The province also hopes to enhance the health Human Resources Action Plan and hire additional health care professionals across the province.
Education
K-12 education is also high on province’s list of priorities.
Reiter states that the Ministry of Education will receive $3.5 billion, an increase of $184 million over last year. About $130 million of that will go towards a new teacher collective agreement.
“Building on last year’s pilot project, the budget provides funding for 50 additional specialized support classrooms to help reduce interruptions by providing additional supports to students who need them.”
Reiter adds that the budget also invests in the construction of new schools, with a $191 million school capital budget. This includes ongoing funding for 21 new schools already underway, and preplanning for four new schools in the Saskatoon area.
Safter Communities
Delivering safer communities was another focus of the provincial government when developing the budget, which includes $798 million for the Ministry of Corrections, Policing, and Public Safety.
“The budget also includes funding for previous commitments for approximately 100 new municipal police officers, 14 new Safer Communities and Neighborhoods Personnel, and funding for the Saskatchewan Police College to train more officers.”
Reiter adds that the budget also provides new capital funding for the expansion of complex needs emergency shelters in new communities, as well as $623.8 million towards mental health and addictions. This is up by $52.8 million from last year.
Affordability
According to Reiter, affordability will be delivered through a series of taxation changes showcased in the document.
The finance minister says the government is providing over $250 million in tax savings, on top of $2 billion of affordability measures included in every provincial budget.
“This budget reduces income tax for every person, family and small business in our province. It helps make life more affordable for seniors, families with children, persons with disabilities, care givers, new graduates, first time homebuyers, and people renovating their homes.”
With these changes, an additional 54,000 residents will no longer have to pay provincial income tax. The budget also reduces education property tax mill rates across all property classes and increases the Graduate Retention Program benefit will be increased by 20 per cent.
Capital Debt Increase
Although the budget does not require any borrowing for operations, the budget does include $2.5 billion in capital debt.
Finance Minister Reiter says the debt is the result of borrowing for the Saskatchewan Capital Plan, as well as capital spending by government entities such as crown corporations.
“It’s capital debt. I would compare it to when somebody gets a mortgage on their house. You’re incurring debt, but you’re doing it because you need a place to live.”
He says that money will fund numerous capital projects such as new hospitals, schools, and urgent care centres. Currently, there is one urgent care centre in Regina, and another under construction in Saskatoon.
Despite this debt, Saskatchewan’s net debt as a percentage of its GDP is second lowest among the provinces at 14.6 per cent.
