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REGINA \u2014 Saskatchewan has introduced a new budget that avoids tax hikes and program cuts but carries with it a big deficit.<\/p>\n
Finance Minister Jim Reiter tabled the 2026-27 budget on Wednesday. It projects a $819-million deficit this year with more deficits in the years that follow.<\/p>\n
Reiter said the province is not raising taxes or cutting services.<\/p>\n
\u201cWe chose to protect Saskatchewan,\u201d Reiter told reporters before introducing the budget in the legislature.<\/p>\n
\u201cWe could have increased some taxes. We could\u2019ve not put as much funding into key areas like health care. We decided now is not the time to be doing that.\u201d<\/p>\n
Global uncertainty, including tariffs from the United States and other countries and the U.S.-Israel war with Iran, is also weighing on the books, he added.<\/p>\n
His government is also planning to reduce the public service by three per cent through attrition, focusing on unfilled positions behind the front lines.<\/p>\n
\u201cWe are not going to be handing out pink slips,\u201d Reiter said. \u201cThis (will apply) if somebody retires; this is if somebody is willingly leaving their position to go somewhere else.\u201d<\/p>\n
Debt is forecast to be $43.5 billion and debt financing costs are expected to be $1.2 billion.<\/p>\n
The budget shows the province plans to spend an extra $1.2 billion, mainly for education and health care while providing benefits and tax incentives for families struggling to pay bills and put food on the table.<\/p>\n
Health care is getting about a five per cent boost in funding for a total budget of $8.4 billion. The province says the extra dollars stem from a plan to hire more nurse practitioners, adding hospital beds, lowering wait times and expanding virtual appointments.<\/p>\n
It is also working toward completing 500 addiction treatment spaces and planning new urgent care centres.<\/p>\n
Bashir Jalloh, the president of the Canadian Union of Public Employees local 5430, called the budget a missed opportunity to address burnout and staffing shortages in the health care system.<\/p>\n
\u201cTo be very blunt, it is very disappointing,\u201d Jalloh said. \u201cWe did not see anything that would address the workforce crisis.\u201d<\/p>\n
On affordability, the budget says it will fulfil a promise the Saskatchewan Party government made in 2024 to lower personal income taxes. The province estimates families will save about $200 million this year by no longer paying the tax on their first $65,000 of income.<\/p>\n
The budget says Saskatchewan\u2019s economy remains healthy, putting it in a strong position to generate those revenues needed to support public services.<\/p>\n
Revenues are projected to be up by $360 million, largely due to the province receiving more provincial sales taxes. However, Saskatchewan expects fewer dollars from natural resources.<\/p>\n
The budget says oil revenues are expected to be lower, though it anticipates more income from potash alongside stable uranium revenue.<\/p>\n
The province is spending $2.5 billion on education, an increase of 2.6 per cent. It says more work is underway to add specialized support classrooms, along with plans for building new schools.<\/p>\n
Samantha Becotte, the president of the Saskatchewan Teachers\u2019 Federation, said the spending increases don\u2019t match the rate of inflation and worries it could lead to cuts in some school divisions.\u00a0<\/p>\n
\u201cIt just means that kids are more at risk to experiencing challenges in their schools,\u201d Becotte said.\u00a0<\/p>\n
Sean Davidson, the president of the Saskatchewan School Boards Association, said the budget is in line with what they were expecting but said it doesn\u2019t keep up with inflationary pressures.\u00a0<\/p>\n
On policing, the province is planning to spend $310 million to support RCMP and First Nations forces. There is also more funding to hire more officers under the province\u2019s marshals service.<\/p>\n
Total capital spending is $4.3 billion, down by $313 million from the year prior.<\/p>\n
Opposition NDP Leader Carla Beck said the budget is bad news for residents. \u201cEverything your family needs is more expensive and there\u2019s no new cost-of-living relief in this budget,\u201d Beck said.<\/p>\n
New Democrats have called on the province to cut the gas tax as the Iran war has pushed up prices at the pump.<\/p>\n
The NDP has also said the government can\u2019t be trusted with the numbers, as they promised a surplus in the previous fiscal year.<\/p>\n
The current fiscal year\u2019s budget, which wraps up at the end of the month, is set to record a $1.2-billion deficit despite the province initially projecting a $12-million surplus.<\/p>\n
\u201cLet\u2019s open the books,\u201d Beck said.<\/p>\n
\u201cThe people of this province don\u2019t always get full value or get value from the money that\u2019s been spent.\u201d<\/p>\n
\u00a92026 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n