The Saskatchewan government finished the 2025-26 fiscal year with an operating deficit of $947 million, driven by rising costs in health care and wildfire response.
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According to the province’s public accounts released on June 30, the final deficit is an improvement of $263 million from the third-quarter projection. However, it represents a steep drop from the surplus originally anticipated in the provincial budget, missing that target by $960 million.
The province recorded a $249-million deficit during the previous fiscal year.
“While we have seen a small increase in revenue from oil prices, we continue to face significant expense pressures, particularly with regard to utilization in health care and our correctional facilities,” finance minister Jim Reiter said.
Total provincial revenue rose by a modest $77 million compared to the budget, while total expenses surged by $1 billion to hit $22 billion — a 4.9 per cent increase.
The government attributed the spending jump to higher demand for health-care services, alongside increased costs for wildfire response and evacuations. Those overages were partially offset by a significant reduction in agricultural spending, thanks to better crop yields that resulted in lower crop insurance payouts.
On the revenue side, modest gains in own-source revenue were offset by drops in taxation revenue and net income from government business enterprises.
Saskatchewan’s net debt increased by $1.5 billion over the fiscal year. Despite the spike, Reiter noted that the province continues to maintain the second-lowest net debt-to-GDP ratio and the highest credit rating in Canada.
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