Saskatchewan’s provincial deficit persists despite higher oil revenue

Saskatchewan's provincial deficit has continued to grow, despite an increase in oil revenue, according to a first-quarter financial update released by the provincial government. Finance minister Jim Reiter reported a deficit of $825 million, slightly higher than the $819 million originally projected in the budget. The increase in revenue is largely due to a rise in West Texas Intermediate crude oil prices, which climbed to $75 per barrel from $59.75 per barrel.

However, total expenses have also risen by $337 million, primarily due to growing health care costs and the aftermath of spring flooding in certain parts of the province. Reiter emphasized the province's resilience in the face of geopolitical uncertainty and trade tensions with the United States, noting that most industries have not been significantly impacted by U.S. tariffs.

The province's net debt-to-GDP ratio is projected to be 14.9% by March 31, 2027, an improvement from the 16.1% projected in the 2026-2027 budget. The Saskatchewan NDP criticized the government for not using higher oil revenue to address affordability issues, such as rising food, housing, and gas prices. The NDP has called for a temporary pause on the gas tax and PST on children's clothing.

Reiter reiterated the government's plan to lower personal income taxes and enhance tax credits, which will provide tax savings of $200 million this year.