Saskatchewan fiscal update projects $825M deficit, cites health, agriculture costs

The Saskatchewan government is forecasting an $825-million deficit, inching slightly more into the red from 2026-27 budget projections in March.

Original budget projections put the province in an $819-million deficit.

The first quarter report says expenses are to cost $337 million more than expected, because of higher health-care costs and anticipation of flood-related costs and higher payouts for crop insurance claims.

Those expenses are somewhat beaten back by non-renewable resource revenue, which is largely behind the $331-million increase in expected revenue for the budget year.

The province says the rise in oil prices has been driven higher than expected because of war in the Middle East.

Finance Minister Jim Reiter is set to provide more details about the fiscal update in Saskatoon.

“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,” Reiter said in a statement Thursday.