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Saskatchewan budget takes big hit, from $12M surplus to $349M deficit

  • Jeremy Simes

  • Canadian Press

  • August 22, 2025

Saskatchewan Minister of Finance Jim Reiter delivers the Saskatchewan Provincial Budget in Regina on Wednesday, March 19, 2025. THE CANADIAN PRESS/Liam Richards

SASKATOON -- Saskatchewan's financial fortunes this year have taken a dramatic hit.

The province was planning on a $12-million surplus this fiscal year.

But a statement issued Friday says first-quarter numbers indicate that modest surplus is now on track to be a $349-million deficit.

It says the decline is primarily due to Saskatchewan's decision to remove the federal carbon levy ratepayers had paid on their electricity bills.

It's also tying the reversal to a $172-million drop in revenues, most of it from its Crown agency, SaskPower, and from falling oil prices.

Saskatchewan Finance Minister Jim Reiter says the province is being rocked by global uncertainty, but its overall financial position remains stable.

"Today's update underscores government's commitment to striking the right balance -- keeping life affordable while continuing to invest in essential programs and services that support Saskatchewan residents and businesses," Reiter said in a news release.

"We will continue to protect and advocate for the province's economic interests."

This report by The Canadian Press was first published Aug. 22, 2025.