Government of Saskatchewan Releases Mid-Year Report

Released on November 25, 2025

Saskatchewan is forecasting a deficit of $427 million at mid-year, an increase of $79 million from the first quarter. This compares to a projected $12 million surplus in the 2025-26 Budget. 

Despite lower oil prices and the impact of global tariffs, Saskatchewan's economy remains one of the best-performing provincial economies in Canada, with the lowest deficit per capita among provinces and the federal government by a considerable margin.

"Saskatchewan's economy remains resilient in the face of global economic uncertainty," Deputy Premier and Finance Minister Jim Reiter said. "The vast majority of Saskatchewan's exports are CUSMA compliant and our producers have worked hard to find new markets, which has helped Saskatchewan remain in a comparatively strong economic position." 

Total expense at mid-year is forecast to increase $521 million, or 2.5 per cent, from budget. Expense increases include an additional $295 million allocated to the Saskatchewan Public Safety Agency to combat provincial wildfires and related costs, $250 million to address health care utilization pressures and $114 million in pension expenses, partially offset by a decrease in expected crop insurance claims. 

Total revenue is forecast to increase by $82 million, or 0.4 per cent, from budget. Revenue increases include $273 million in Federal Transfers and $129 million in other own-source revenue, mainly due to higher fees driven by population and economic growth, as well as increased gaming revenue. Revenue increases are largely being offset by a $292 million reduction in SaskPower net income, primarily due to the removal of the federal carbon tax charge from customer bills. Non-renewable resource revenue is forecast to decrease $93 million, mainly due to a higher exchange rate and lower price for oil.

"Today's mid-year update is very much in line with what we saw at first quarter," Reiter said. "Our government is committed to supporting those affected by this year's unprecedented wildfire season, addressing pressures in health care and providing affordability relief through the income tax reductions contained in the budget and the removal of the carbon tax from SaskPower customer bills." 

Total gross debt is forecast to be $39.3 billion at fiscal year-end, an increase of $962 million, or 2.5 per cent, from budget. Saskatchewan continues to have the second lowest net debt-to-GDP ratio among all provinces.

Saskatchewan's economy remains strong with anticipated GDP growth of 1.7 per cent in 2025. This is the third highest among provinces, building on strong GDP growth in 2024 of 3.0 per cent, mainly driven by strength in the construction, natural resources and agriculture sectors, supported by solid population and employment growth and nation leading growth in housing starts. 

For further information, the 2025-26 Mid-Year Report is available for download at Publications Centre.

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