2025–26 Government Finances Weakened with $947 Million Deficit, say Provincial Auditor July 6, 2026

Government Finances Weakened with $947 Million Deficit, say Provincial Auditor

Clean opinion issued on the Government of Saskatchewan’s 2025–26 financial statements

REGINA—July 6, 2026: Provincial Auditor Tara Clemett issued the Government of Saskatchewan an unmodified audit opinion on its 2025–26 financial statements, confirming they comply with Canadian public sector accounting standards and are free of significant errors. Saskatchewan ended 2025–26 with a $947 million operating deficit. At March 31, 2026, the Government’s accumulated deficit was $2.39 billion.

“The Government’s finances weakened over the past year with it spending nearly $950 million more than it raised,” said Tara Clemett. “The accumulated deficit also increased to $2.39 billion signifying the amount current and past Saskatchewan governments are leaving for future generations to pay.”

Saskatchewan’s 2025–26 Public Accounts noted nearly 60% of expenses ($13.2 billion combined) were spent in the heath and education sectors. Wildfire response costs were also a significant factor in higher spending during the year. The Provincial Auditor recently reported that robust planning and more accurate budgeting for wildfire resources would allow the Government to procure and secure cost-effective resources prior to the start of each wildfire season. The audit report of the Saskatchewan Public Safety Agency—Resource Planning for Wildfire Response is included in our 2026 Report – Volume 1 available at auditor.sk.ca.

Some financial highlights from the 2025–26 Public Accounts:

  • Total revenue of $21.13 billion and total expenses of $22.08 billion
  • Total public debt of $39.74 billion at March 31, 2026, compared to $35.22 billion at March 31, 2025
  • Net debt burden per Saskatchewan resident continued to grow peaking at $13,600 per resident in 2026—the highest in a decade

While millions of transactions are summarized into the financial statements, audits do not mean our Office examines every transaction. Instead, financial audits focus on areas of risk where significant errors are likely to occur. Our Independent Auditor’s Report outlined two key audit matters where we focused our audit effort for 2025–26 because they are complex and require a high degree of estimation and judgment. These matters included pension liabilities ($5.7 billion) and individual and corporate income taxation revenue ($5 billion).

Public Accounts – Volume 1 includes the Government of Saskatchewan’s Summary Financial Statements (SFS) showing how public money was collected and spent over the fiscal year and our Independent Auditor’s Report on the financial statements. Required under The Provincial Auditor Act, our Office audits these financial statements reporting on the financial performance of the entire Government and the financial condition of the province. These financial statements include the combined financial results of all the agencies the Government controls (over 150 agencies such as the Saskatchewan Health Authority, school divisions, SaskPower, and the Ministry of Finance).

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The Provincial Auditor is an independent officer of the Legislative Assembly of Saskatchewan. The Office advances government’s accountability, transparency, and management of public resources through independent assessment and reporting.

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