Government of Saskatchewan releases first quarter report

- Media Release, Gov’t SK

August 22, 2025

key points from this story:

• Deficit forecast at $349 million
• Revenue down $172 million from budget
• Expenses up $189 million from budget
• Wildfire costs increased by $80 million
• SaskPower net income decreased $163 million
• Net debt-to-GDP projected at 14.5%

Saskatchewan is forecasting a deficit of $349 million at first quarter, with total revenue forecast to be $20.9 billion and expense forecast to be $21.2 billion.

This compares to a projected $12 million surplus in the 2025-26 Budget.

Today's update underscores government's commitment to keeping our communities safe and continuing to invest in healthcare, education and other essential services, Deputy Premier and Finance Minister Jim Reiter said.

While economic uncertainty is creating financial challenges both nationally and globally, Saskatchewan's financial position remains stable.

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

Total revenue is forecast to be $172 million lower than budget at the first quarter.

This decrease is largely attributable to a reduction in Government Business Enterprise net income, including a $163 million decrease in SaskPower net income.

This decline is primarily due to the removal of the federal carbon tax from customer bills in the first quarter.

The Government of Saskatchewan continues to engage in discussions with the federal government to remove industrial carbon pricing from the electricity sector.

Non-renewable resources revenue is also forecast to decline by $30 million compared to budget due to lower oil prices and a higher exchange rate.

Total expense at first quarter is forecast to be $189 million higher than budget.

The higher expense forecast is primarily due to an $80 million increase to address wildfire costs and evacuation activities.

To align with the province's immediate wildfire response, this expense is included in the first quarter report forecasts and will be addressed in a special warrant that will be released on August 25.

Government remains committed to ensuring the necessary resources are available to combat Saskatchewan's ongoing and devastating wildfire season, Reiter said.

Our priority is to support firefighting efforts and help affected families and communities access the assistance they need as they work toward safely returning to their homes.

There is also a $115 million increase in expenses associated with year-end updates to pension accrual assumptions.

Average private-sector forecasts highlight the strength of Saskatchewan's economy in the first half of 2025.

Major private sector projects and housing construction, retail sales and labour market performance have remained among the strongest in Canada.

Saskatchewan also continues to demonstrate financial stability, maintaining the highest credit rating among the provinces when the ratings from all three major agencies are considered.

Further reinforcing the province's strong fiscal position, Saskatchewan's net debt-to-GDP ratio is projected to be 14.5 per cent as of March 31, 2026, an improvement over budget projections and the second-lowest among the provinces.