Saskatchewan Budget 2026

The Saskatchewan government has released its 2026-27 budget, and while there are some positive measures, the overall picture is concerning.

At first glance, next year’s projected deficit of $819.4 million is smaller than this year’s expected deficit of $1.21 billion, which might make it appear as if the province is heading in the right direction.

But looking deeper, the trend tells a very different story.

If we compare apples to apples, using last year’s projections for this year, the picture is much worse.

In 2025, the government projected this year’s deficit would be roughly $427 million, with a return to small surpluses starting this year.

But, as we mentioned above, this year’s updated deficit is now expected to reach $1.21 billion - more than three times the original projection.

So, while next year's deficit looks significantly improved compared to what this year's will actually end up being, it looks significantly worse than what was predicted for this year!

The same has also been true for spending projections, where actual spending amounts end up far higher at the end of the year than projected at the start of the year.

Which leads to the obvious question - if last year's deficit and spending figures ended up much higher than projected, has whatever caused that error actually been corrected now, and will this year's deficit come in on target?

Or could we actually be looking at an even larger deficit this time next year when the results come in?

And, looking forward, this pattern continues, as this year’s projections show deficits in every year through 2030-31.

This repeated upward revision of deficits and debt illustrates a deeper structural problem: the Province continues to spend beyond its means, relying on borrowing to fund ongoing operations and new programs.

Total government expenses are now projected to rise to $22.2 billion, a 5.7% increase over last year.

Total provincial debt is also expected to climb to $43.5 billion by 2027, with $1.2 billion now being spent on interest alone.

There are some positive aspects of the budget, however.

The personal, spousal, equivalent-to-spouse and child tax exemptions have been raised again, as announced last year, while the low-income tax credit has also increased by 5%.

While modest, these changes do help provide some tax relief to Saskatchewan residents.

The government also says it hopes to reduce the total number of government employees by several hundred, but even this will be achieved only through attrition and by not filling vacant positions.

Overall, Saskatchewan remains in a relatively strong economic position compared to many other provinces, but that makes these repeated upward revisions in spending and deficits even more frustrating.

A strong fiscal position should make it easier to exercise discipline, control spending, and begin paying down debt, yet the province continues to postpone difficult decisions.

The Saskatchewan Institute will continue to monitor government spending, compare projections to actuals, and advocate for policies that prioritize long-term fiscal responsibility, transparency, and economic freedom.