REGINA — Saskatchewan is projecting a slightly larger deficit than initially budgeted, according to its 2026-27 first quarter fiscal report.The province now expects an $825 million deficit, up from the $819 million projected in the spring budget. Total revenue is forecast at $21.7 billion, while total expenses are expected to reach $22.6 billion."While there continues to be uncertainty in the global economy, Saskatchewan's strong economic fundamentals and fiscal position provide a solid foundation to meet the needs of Saskatchewan people and communities," Deputy Premier and Finance Minister Jim Reiter said.Revenue is forecast to be $331 million higher than budgeted, driven primarily by nonrenewable resource revenue up $320 million. Higher-than-expected oil prices tied to the ongoing conflict in the Middle East pushed the West Texas Intermediate price forecast to $75 USD per barrel, up from $59.75 USD in the budget..Expenses are projected to climb $337 million, largely reflecting healthcare system pressures from growing service demand, inflation, and compensation costs. Additional pressures include flood response and recovery efforts and higher Crop Insurance claims stemming from unseeded acres caused by excess spring moisture.The economic outlook has improved since the budget, supported by strong construction activity and a better commodity outlook. Real GDP growth is projected to rank third highest among provinces in 2026 and second highest in 2027, while exports rose 11.6% year over year through June.Saskatchewan's net debt-to-GDP ratio is projected at 14.9% as of March 31, 2027, an improvement from the 16.1% forecast in the budget and the second-best among provinces. The province also maintains the highest credit rating in the country.
