SASKATOON — Saskatchewan's financial fortunes this year have taken a dramatic hit.
The province had budgeted a $12-million surplus this fiscal year, but a first-quarter update issued Friday announced that the modest surplus is now on track to be a $349-million deficit.
It's tying the reversal to a $172-million drop in revenues, most of it from its Crown agency, SaskPower.
That decline is primarily due to Saskatchewan's decision to remove the federal carbon levy ratepayers had paid on their electricity bills in a dispute between Premier Scott Moe’s government and the federal Liberal government.
Moe paused the industrial carbon levy the province had collected from SaskPower and heavy emitters. Ratepayers paid for SaskPower's portion of the charge on their electricity bills.
The money went to the province's output-based performance program, which used the dollars on technology projects to lower emissions. Some of that money was also earmarked to stabilize electricity rates.
Saskatchewan Finance Minister Jim Reiter said the province is being rocked by global uncertainty, but its overall financial position remains stable.
"Today's update underscores government's commitment to striking the right balance — keeping life affordable while continuing to invest in essential programs and services that support Saskatchewan residents and businesses," Reiter said in a news release.
"We will continue to protect and advocate for the province's economic interests."
Total revenue for the year is now forecast to be $20.9 billion and expenses are predicted to be $21.2 billion.
Non-renewable resources revenue is also projected to decline by $30 million compared with the budget because of lower oil prices and a higher exchange rate. The province is also spending an extra $80 million to fight wildfires this summer.
This report by The Canadian Press was first published Aug. 22, 2025.
Jeremy Simes, The Canadian Press
