More spending, more debt: can Saskatchewan turn things around before it’s too late?
The latest budget from the Government of Saskatchewan is raising concerns after showing another large deficit and rising debt levels.
According to the report, the province is expected to run an $819 million deficit in 2026–2027. This follows an even larger $1.2 billion deficit the year before. In simple terms, the government is spending more money than it brings in, and that gap is growing.
Experts point to one main reason: spending. Over the past three years, government spending has increased faster than revenue. If spending had stayed in line with income, Saskatchewan could have had a $1.3 billion surplus instead of a deficit. This shows how much impact spending decisions can have on a budget.
The problem doesn’t stop there. Continued deficits mean more borrowing. The province’s net debt is expected to rise from $14.3 billion in 2023–2024 to $22.2 billion by 2029–2030. As debt grows, so do interest payments. This year alone, Saskatchewan will spend about $1.2 billion just to pay interest on its debt. That’s money that could have gone to health care, education, or tax relief.
The government has often relied on resource revenues like oil, gas, and potash to balance its budget. But these revenues can change quickly, making them unreliable.
There is also a past example to look at. In the early 1990s, former premier Roy Romanow faced a similar financial crisis. His government reviewed programs, reduced spending, and balanced the budget within a few years. This helped lower debt and improve the province’s financial stability.
Today, some analysts believe Saskatchewan has another chance to follow a similar path. By managing spending more carefully, the province could reduce deficits and avoid further debt.
