‘We had a choice: cut services, raise taxes or protect Saskatchewan’
Saskatchewan workers and their families are at the centre of the province’s 2026‑27 budget, which delivers broad personal tax relief, record health‑care and mental health funding, and new investments in training, education and social supports – easing pressure on employers.
The budget sets out $21.4 billion in revenue against $22.2 billion in total expense. The Saskatchewan government says the plan is designed to “protect Saskatchewan” by easing cost‑of‑living pressures and improving access to essential services that residents rely on to work and stay in the labour force.
The government is projecting an $819‑million deficit.
“Saskatchewan’s diverse economy and growing export markets mean we are better positioned than most provinces to get through the current economic turmoil caused by tariffs and global conflicts,” Deputy Premier and Finance Minister Jim Reiter says. “Still, Saskatchewan is not immune and these events have had an impact on our economy and provincial finances.
“We had a choice: cut services, raise taxes or protect Saskatchewan. We chose to protect Saskatchewan.”
Reiter says affordability and access to health care were the top concerns raised by residents, and argues the budget “addresses both by lowering taxes for everyone to make life more affordable and by investing to ensure everyone can get the right care in the right place at the right time through our Patients First Health Care Plan.”
At the start of this year, Saskatchewan’s updated employment standards came into force, introducing new protections for workers who earn tips, take sick leave or require time off after pregnancy loss or interpersonal violence.
Tax relief aimed at working families
The Saskatchewan government says more than $2.5 billion in annual affordability measures are included to help keep the province “the most affordable place in Canada to live, work, raise a family and start a business.”
Under The Saskatchewan Affordability Act, the budget implements the second year of a four‑year plan to reduce income taxes. The personal, spousal, equivalent‑to‑spouse and child tax exemptions, as well as the seniors’ supplement, will each rise by $500 this year. The Saskatchewan Low‑Income Tax Credit will increase by a further five per cent, in addition to annual indexation.
According to the budget, tax cuts and indexation together provide approximately $200 million in tax savings this year. A family of four will pay no provincial income tax on its first $65,000 of income, which the Saskatchewan government says is the highest threshold in Canada.
“Today, a family of four earning $100,000 is paying $4,484 less in personal income tax than they would have when our government was first elected in 2007,” Reiter says. “These are not one‑time savings, these significant tax reductions save Saskatchewan individuals and families thousands of dollars a year, year‑after‑year.”
Health care, mental health and community safety
Health care – a key support for the working‑age population – is a central focus. Total health funding will rise to a record $8.5 billion in 2026‑27, up $393 million, or nearly five per cent. Through the Patients First Health Care Plan, the Saskatchewan government commits to increasing the number and scope of practice of health‑care professionals, expanding access to primary care and Urgent Care Centres, continuing recruitment and training of doctors, nurses and nurse practitioners, and expanding diagnostic services such as MRI, CT and PET‑CT scans.
The budget also expands mental health and addictions services, including funding to open about 200 additional addictions treatment spaces toward a commitment of 500 new spaces, a new youth detox site and improved system access “so patients and families can receive the help they need.”
To “protect Saskatchewan communities,” the budget boosts support for law enforcement, including funding for the Municipal Police Grant Programme, an additional $50 million for RCMP operations and First Nations policing, and a new Small Town and Rural Policing Grant Programme. Funding will also increase for the Saskatchewan Marshals Service and Saskatchewan Highway Patrol.
Municipal Revenue Sharing will rise to nearly $400 million, which the Saskatchewan government calls a record level, up 8.5 per cent from last year and 208 per cent since 2007. The Volunteer First Responders’ Tax Credit will be doubled from $3,000 to $6,000.
Supports for vulnerable workers and future talent
The Provincial Approach to Homelessness will receive predictable multi‑year funding to create up to 40 new shelter spaces and up to 60 supportive housing spaces, and to add trusteeship services to help individuals transition into housing. Saskatchewan Income Support clients will gain access to a one‑time, per‑household $1,000 repayable utility arrears benefit, while Saskatchewan Assured Income for Disability residential support benefits will increase by 10 per cent a year for the next three years.
With workers getting stable housing, they are more likely to show up on time, stay in their jobs and be available for predictable shifts.
On education, the budget allocates $2.5 billion in operating funding for the 2026‑27 school year, an increase of $62 million. Specialised support classrooms will expand to 108 across the province, and new capital projects include a joint‑use middle/high school in Martensville‑Warman, a new school in Shellbrook and a major renovation of Esterhazy High School.
A renewed child care agreement with the federal government is intended to support access to “affordable, high‑quality early learning and child care.” A new multi‑year post‑secondary funding agreement will raise operating grants by three per cent annually over four years and limit tuition increases to between zero and three per cent.
“When you look at other provincial budgets across the country this year, it is clear Saskatchewan has one of the strongest financial positions,” Reiter says, citing the province’s “second‑lowest debt‑to‑GDP ratio in Canada” and “by far the lowest deficit relative to the size of the economy of any provincial budget released to date.”
The recently released plan is the province’s 19th budget overall.
“With its 19th budget presented, the teenage years of the Saskatchewan Party have had its ups and downs,” notes research firm Earnscliffe in an article posted on its website.
Photo from Earnscliffe
“Throughout those years, a theme of fiscal restraint and an affinity for balanced budgets has guided the province to what may very well be the smallest deficit in the federation by year’s end. We may be able to attribute this to a uniquely Saskatchewan approach to handling the province’s financials, one rooted in pragmatism and fiscal discipline. Much like running a family farm, it reflects a mindset of working with available resources, adapting to changing conditions, and making the most of challenging circumstances.”
Meanwhile, Canadian employers are facing growing uncertainty as more than 1.3 million temporary work permits are set to expire by the end of 2026, raising concerns about labour shortages, supply chain stability and business closures, according to the Canadian Federation of Independent Business (CFIB). And the pressures are already visible in Saskatchewan, where industries “are bracing for impact as thousands of permits are expected to expire in the province by the end of the year,” Global News reported.
