Budget 2026, entitled Protecting Saskatchewan, was tabled by Minister of Finance Jim Reiter. The government presented two paths for Saskatchewan: cutting services and raising taxes, or running a deficit to preserve core services.
The government decided to tolerate a short-term deficit while maintaining affordability measures, frontline services, infrastructure investment and economic supports during tariff uncertainty, trade realignment, unstable oil prices and broader global instability.
The government makes the case that Saskatchewan is better positioned than most provinces to ride out this economic instability owing to its diverse export mix, housing supply, low unemployment and vast source of natural resources. The budget centers itself on economic resilience while stressing the governments affordability measures.
The central theme of Budget 2026-27 is “Protecting Saskatchewan.” The government is aiming to shield against external economic shocks while protecting core services such as healthcare, education and public safety.
Revenue
Projected Revenue:
- Taxation: $10.693 billion
- Non-renewable resources: $2.568 billion
- Net income from Government Business Enterprises: $642.9 million
- Other own-source revenue: $3.346 billion
- Federal transfers: $4.168 billion
Expenses:
- Health: $8.421 billion
- Education: $4.649 billion
- Social services and assistance: $1.929 billion
- Agriculture: $1.687 billion
- Protection of persons and property: $1.168 billion
This is not an austerity budget. Total expenses have risen 5.7% year-over-year with the government targeting average annual revenue growth of 4.1% and expense growth of 3% through 2030.
The government is aiming to return the province to surplus by 2030.
Taxes
The Budget does not include any new personal income taxes, it makes small changes to the corporation capital tax credit. The large financial institution corporate capital tax (CCT) rises from 4% to 6% on April 1, 2026, while CCT on small financial institutions (having less than $1.5 billion in Canadian taxable paid-up capital) will be eliminated effective April 1, 2026.
Energy Assumptions
In Budget 2026, the government assumes that oil revenues will weaken sharply, and increased potash income is expected to offset much of the loss. Budget 2026 projects oil and natural gas revenues of $721 million, down 32.5% from the prior budget, while potash revenues will increase by 30.7% to $940.9 million. Uranium revenue is expected to be stable at $275.8 million. These assumptions come with the caveat that commodity revenues remain exposed to external market forces. A $1 USD change in WTI affects Saskatchewan’s oil revenue by $16million, a $10 USD change to potash affects revenue by $54 million, while a 1-cent move in the exchange rate impacts total non-renewable resource revenues by $44 million.
Capital Plan
Budget 2026 contains significant infrastructure investment. The province has allocated $17.5 billion over four years for capital projects, including $4.3 billion in this fiscal year.
Key capital highlights include:
- $417 million for highways and transportation infrastructure
- $239 million for municipal infrastructure transfers
- $124 million for K-12 school capital
- $57 million for post-secondary capital
- More than $1.5 billion over four years for health facility maintenance and construction
Health
Healthcare spending continues to be the largest expense in the budget at $8.421 billion or 37.9% of overall spending, an increase of $415.7 million from last years budget. The increase is driven by compensation and utilization pressures, acute care expansion, physician services, primary care, cancer care, and targeted mental health and addictions initiatives.
Health capital is also substantial:
- $636 million for health care capital
- $98 million increase for hospital and acute system capacity and EMS initiatives
- $29 million for the Health Human Resources Action Plan
- $12 million for primary and preventative care initiatives
- $9 million for seniors and continuing care
Mental Health and Addiction remains an important sub-priority with $573 million in total funding, with plans to add 200 more addictions treatment spaces as the province begins to implement the Compassionate Intervention model.
Education
Education is budgeted at $4.649 billion, up $221.2 million from last year, with earmarked funding for 50 additional specialized support classrooms. The province has also reached a four-year agreement to provide 3% annual operating increase for post secondary, while annual tuition increases will be capped between 0 and 3%.
The budget also adds new domestic training capacity in respiratory therapy, occupational therapy, speech language pathology, physician assistants, and continuing care assistants, alongside $125 million for Immigration and Career Training programming.
Public Safety
Budget 2026 highlights the importance of spending on Public Safety. The total budget is $310 million to support Saskatchewan RCMP and First-Nations policing, alongside continued investments in the Marshals Service.
Municipal and community supports are also visible:
- Nearly $400 million in Municipal Revenue Sharing, up $30 million
- $140 million for the Saskatchewan Public Safety Agency
- Doubling the Volunteer First Responders’ Tax Credit from $3,000 to $6,000
Affordability
Affordability is one of the Saskatchewan government’s core focuses. The budget contains about $2.5 billion in annual affordability measures, including continued multi-year personal income tax relief, a larger Saskatchewan Low-Income Tax Credit, housing-related supports, and roughly $500 million in savings from the removal of the federal carbon tax from SaskPower bills.
Summary
The government’s short-term fiscal objective is clear: preserve services now, return to balance later. The 2026-27 deficit of $819.4 million is an improvement from the $1.2105 billion forecast deficit for 2025-26, but it still reflects the increasing costs of providing core services. The government aims to return to balance by relying on program reviews, economic growth, and a 3% workforce reduction through attrition over two years, without eliminating filled positions. This budget represents a choice to continue focusing on core programming and economic growth, rather than cutting programming to return to a surplus position.
