2025-26 Public Accounts of Saskatchewan

Volume 1

General Revenue Fund schedules and details;

General Revenue Fund capital asset acquisitions schedule and details;

revolving fund expenditure details;

summary listing of payees who provided goods and services and capital assets of $50,000 or more to the General Revenue Fund and revolving funds during the fiscal year;

assets, liabilities and residual balances of pension plans and trust funds administered by the government;

remissions of taxes and fees; and

road-use fuel tax accountability revenues and expenditures.

Financial Statement Discussion and Analysis

Revenue

Expense

Operating (Deficit) Surplus

Net Debt

Accumulated Deficit^{1 2}

¹ Comprised of:

Accumulated operating deficit

Accumulated remeasurement gains (losses)

Accumulated Deficit

Restated for change in amortization accounting policy. See note 9 of the SFS.

The 2026 SFS report an operating deficit of $947 million, an increase of $699 million from the $249 million deficit reported in the previous year and a $960 million reduction from the budgeted surplus of $12 million. The decline in results from both prior year and budget are largely due to significant expense increases that are offset by a lower increase in revenue.

The most significant expense increases from the prior year and budget are in the health, protection of persons and property, economic development and education themes, partially offset by a notable reduction in agriculture expense. Revenue increases from the prior year are significant in taxation, non-renewable resources and transfers from the federal government. These increases are offset by significant reductions in other own-source revenue and net income from GBEs. The increase from budget is the result of a significant increase in other own-source revenue offset by decreased net income from GBEs and taxation revenue.

(billions of dollars)

(billions of dollars)

*  Beginning in 2023, accumulated (deficit) surplus includes accumulated remeasurement gains (losses).

The net debt at March 31, 2026 is $17.17 billion, an increase of $1.54 billion over the prior year. The year-over-year increase is primarily due to the operating deficit and net acquisition of tangible capital assets (TCAs) reported in the current year partially offset by remeasurement gains.

Net debt is a $350 million increase over budget, primarily due to the higher-than-budgeted current year operating deficit partially offset by lower-than-budgeted net acquisition of TCAs and higher-than-budgeted remeasurement gains.

(billions of dollars)

the accumulated (deficit) surplus, representing the sum of all current and prior years’ operating results and accumulated remeasurements; and

the investment in non-financial assets, primarily representing the government’s investment in highways and facilities to deliver health and educational services.

Accumulated (deficit) surplus

Investment in non-financial assets

Net Debt

investing in government-owned capital; and

providing transfers to third parties, including municipalities and universities, for capital purposes.

During 2025-26, the government invested $4.12 billion in government- owned infrastructure: $2.56 billion for GBEs to build new and maintain existing infrastructure and $1.56 billion for new schools, hospitals, roads and other important infrastructure of government service organizations (GSOs). In addition, $299 million was provided to third parties to fund their capital needs.

Investment in government-owned infrastructure is up from the average of the previous nine years of $2.84 billion and is $558 million less than budget.

(billions of dollars)

Rating Agency¹

Jurisdiction

Moody’s

Ratings

S&P Global

Ratings

Morningstar DBRS

British Columbia

Alberta

Saskatchewan

Manitoba

Ontario

Quebec

New Brunswick

Nova Scotia

Prince Edward Island

Newfoundland & Labrador

Ratings reflect the latest credit ratings available at March 31, 2026.

¹  The rating agencies assign letter ratings to borrowers. The major A bracket categories, in descending order of credit quality, are: AAA/Aaa; AA/Aa; A. The ‘1’, ‘2’, ‘3’, ‘high’, ‘low’, ‘-’, and ‘+’ modifiers show relative standing within the major categories with (pos)/(neg) representing a positive/negative outlook or trend. For example, AAA exceeds AA, Aa1 exceeds Aa2 and AA exceeds AA-.

Accumulated (deficit) surplus to the province’s gross domestic product (GDP)

Net debt to the province’s GDP

Net debt to total revenue

Net debt per capita

Financing charges to total revenue

Own-source revenue to the province’s GDP

Non-renewable resources revenue to total expense

Transfers from the federal government to total revenue

Foreign currency debt to net debt

(per cent)

The accumulated (deficit) surplus measures the sum of all current and prior years’ operating results and accumulated remeasurements. GDP is a measure of the value of the goods and services produced during a year, indicating the size of the provincial economy. GDP reflects the latest figures available for the current and prior years based on data produced by Statistics Canada. The indicator takes a long-term view of government finances and provides insight into the government’s fiscal strategy in the context of the economy. An increase in the ratio indicates that the government’s overall fiscal position has improved relative to the size of its economy.

(per cent)

Net debt is the difference between a government’s financial assets and liabilities and represents the future revenue that is required to pay for past transactions and events. Net debt as a percentage of the province’s GDP provides a measure of the level of financial demands placed on the economy by the government’s spending and taxation policies. A lower net debt-to-GDP ratio is desired and indicates higher sustainability, as economic growth is outpacing growth in net debt.

(per cent)

Another measure of a government’s sustainability is net debt as a percentage of total revenue. Net debt provides a measure of the future revenue that is required to pay for past transactions and events. A lower net debt-to-revenue ratio indicates higher sustainability, as less time is required to eliminate net debt.

(thousands of dollars)

Figures are based on Statistics Canada first quarter estimates representing the population at January 1 of each year.

Net debt per capita represents the net debt attributable to each Saskatchewan resident. A rise in this ratio indicates the debt burden per resident has grown.

This ratio has risen slightly over the last 10 years. The rise in 2021 was due to the impact of the COVID-19 pandemic that resulted in a decrease in total revenue and a corresponding increase in borrowing. After a return to pre-pandemic levels, the ratio remained consistent until 2024. The increases in 2025 and 2026 are primarily due to increased borrowing requirements to finance significant investment in infrastructure, combined with operating deficits.

In 2026, the government spent approximately 5.1 cents of each dollar of revenue on financing charges.

(per cent)

The financing charges to total revenue ratio, often referred to as the interest bite, indicates the proportion of provincial revenue that is required to pay financing charges and therefore is not available to pay for essential public services and programs. A lower ratio means that there is more money available to fund government services.

(per cent)

This ratio measures the extent to which government is taking income out of the provincial economy, through taxation, non-renewable resources revenue or user fees. An increase in this ratio indicates that the government’s own-source revenue is growing faster than the economy, reducing the flexibility to increase revenue without slowing the growth of the provincial economy.

In Saskatchewan, non-renewable resources revenue is an important but volatile source of revenue.

The decline in this ratio in 2021 was primarily due to the adverse effect of the COVID-19 pandemic on the economy and government operations. In 2022 and 2023, this ratio increased significantly due to an overall improvement in the economy and a corresponding increase in non-renewable resources revenue and reduced expenses. In 2024 there was a significant decline in non-renewable resources revenue, mainly from potash sales and oil and gas surcharges, which indicated that the government was less reliant on non-renewable resources to fund expenses. The ratio remains relatively constant through 2026.

(per cent)

Non-renewable resources revenue is affected by price and sales factors which are beyond a government’s direct control. Non-renewable resources revenue as a percentage of total expense is therefore an indicator of the degree of vulnerability the government has as a result of reliance on the resource sector for revenue. Generally, a decreasing ratio indicates that a government is less reliant on non-renewable resources revenue to fund its expenses.

In 2026, 18.9 per cent of the government’s revenue came from the federal government with the remainder coming from Saskatchewan sources.

After the one-time infrastructure transfers from the federal government in 2017, the government’s ability to fund essential programs and services from own-source revenue remained fairly stable until 2020. The ratio increased in 2021 primarily due to the adverse impacts of the COVID-19 pandemic on the economy and the resulting support received from the federal government. The decreases in 2022 and 2023 were primarily due to increases in own-source revenue, mainly from non-renewable resources and taxation outpacing increases in transfers from the federal government. Increases since 2024 largely reflect higher federal health and social transfers.

(per cent)

The government does not control the amount of federal transfers that it receives each year. Transfers from the federal government as a percentage of total revenue is therefore an indicator of the degree of vulnerability the government has as a result of reliance on the federal government for revenue. Generally, a decreasing ratio indicates that a government is less reliant on federal transfers to fund its expenses.

The ratio of foreign currency debt to net debt is an indicator of the degree of vulnerability a government has to currency rate fluctuations. Where the government holds debt that is issued in foreign currencies it uses cross-currency swaps, a hedging strategy, to effectively convert this debt to Canadian dollar debt. At March 31, 2026, this ratio is nil due to the government’s hedging strategies. Over the last 10 years, exposure to currency rate fluctuations on foreign currency debt has been minimal. Decreasing this exposure through the use of hedging activities mitigates the risk of debt and financing charges changing due to changes in foreign currency rates.

(per cent)

(per cent)

*   In 2026, key components of other own-source revenue include fees (7%), insurance (3%), Output-Based Performance Standards (2%) and investment income (1%).

Total revenue of $21.13 billion in 2026 represents a year-over-year increase of $278 million, or 1.3 per cent, and an actual-to-budget increase of $77 million, or 0.4 per cent.

The year-over-year increase is the result of increases in all revenue streams except for other own-source revenue and net income from GBEs.

The most significant increase from budget was in other own-source revenue, which was offset by notable decreases in net income from GBEs and taxation revenue.

(billions of dollars)

*   In 2026 Actual, key components of other own-source revenue include fees ($1.50 billion), insurance ($545 million), Output-Based Performance Standards ($489 million) and investment income ($325 million).

(billions of dollars)

*   In 2026 Actual, key components of other include fuel ($498 million), insurance premiums ($235 million), corporation capital ($188 million), tobacco ($113 million) and liquor consumption ($102 million).

(billions of dollars)

*   In 2026 Actual, a key component of other is mineral disposition public offerings ($68 million).

(millions of dollars)

(billions of dollars)

(billions of dollars)

(per cent)

(per cent)

*  In 2026, key components of other include financing charges (5%), community development (4%), transportation (3%), general government (3%), economic development (2%) and environment and natural resources (2%).

(billions of dollars)

*   In 2026 Actual, key components of other include financing charges ($1.07 billion), community development ($815 million), transportation ($723 million), general government ($685 million), economic development ($527 million) and environment and natural resources ($422 million).

(per cent)

*   Transfers are provided to third parties for salaries, capital and other costs.

**  The key component of other is amortization of capital assets.

(per cent)

*   Transfers are provided to third parties for salaries, capital and other costs.

**  The key component of other is amortization of capital assets.

(billions of dollars)

*   Transfers are provided to third parties for salaries, capital and other costs.

**  The key component of other is amortization of capital assets.

Financing charges have increased in recent years mainly due to an increase in debt financing for the replacement of aging infrastructure, the building of new capacity to meet the demands of the province’s growing population and recent operating deficits.

The average effective interest rate on gross debt during 2026 was 3.5 per cent (2025 - 3.5 per cent). Pension interest expense is a function of the unfunded pension liability and the interest costs that are based on the government’s borrowing rates. The average effective interest rate on the unfunded pension liability during 2026 was 3.2 per cent (2025 - 3.0 per cent). Interest on P3 obligations, ranging from 4.7 to 5.7 per cent, reflects the weighted average cost of capital specific to each P3 arrangement.

(millions of dollars)

(billions of dollars)

*   At March 31, 2026, primarily accounts receivable ($3.30 billion), portfolio investments ($1.79 billion) and loans receivable ($1.37 billion).

(billions of dollars)

*   At March 31, 2026, primarily accounts payable and accrued liabilities ($4.78 billion).

(billions of dollars)

Public debt consists of:

The general debt on the Statement of Financial Position does not include GBE specific debt. GBE specific debt is included in the Investment in GBEs reported on the Statement of Financial Position and disclosed in schedule 9 of the SFS.

(billions of dollars)

Pension liabilities represent the future obligations for the government’s defined benefit pension plans. The pension liability fluctuates with changes in actuarial assumptions such as interest and inflation rates and life expectancy. The government limited its pension exposure over 45 years ago when it closed the main defined benefit plans to new members and introduced defined contribution plans. There is no liability exposure for the government under defined contribution plans.

(billions of dollars)

*   In 2023-24, a new accounting standard for P3s was adopted, resulting in a change to discount rates and a corresponding decrease of $262 million in the obligations under long-term financing arrangements.

Obligations under long-term financing arrangements represent the government’s liability for public private partnerships (P3s). P3 obligations increase as the related assets are built (percentage of completion basis), and are reduced as payments are made to the P3 partner.

The net book value of capital assets recognized by the government has steadily increased over the last five years, indicating that the government has been acquiring new, or replacing existing, capital assets.

Acquisition of capital assets in 2026 is $4.12 billion, $2.56 billion acquired by GBEs and $1.56 billion by GSOs. The investment in capital assets made by GSOs is primarily in the transportation, health and education sectors mainly for land, buildings and improvements ($791 million) as well as road, bridge and water management assets ($478 million). GBEs continue to replace aging infrastructure and invest in capital projects to meet the demand for growth.

(billions of dollars)

(billions of dollars)

(billions of dollars)

The Government of Saskatchewan had pension liabilities totalling $5.7 billion at March 31, 2026 (2025: $5.9 billion) related to seven defined benefit pension plans and one joint defined benefit plan as described in Note 5—Retirement Benefits and Schedule 8—Pension Liabilities.

The Government contracts actuaries to estimate the accrued pension benefit obligation and other information required for disclosures in the consolidated financial statements. Note 3—Measurement Uncertainty describes measurement uncertainty exists because actual experience may differ from actuarial or historical estimations.

We identified pension liabilities as a key audit matter because:

Audit work to address this key audit matter included:

Individual and corporate income taxation revenues are significant, totalling $5.0 billion in 2025—26 (2025: $4.8 billion) as included in Schedule 14-Revenue.

The Government estimates these tax revenues, using cash received and other available assessment data from the Federal Government, because precise figures from final tax assessments are not available until at least fifteen months after the taxation year ends. Note 3—Measurement Uncertainty describes measurement uncertainty exists due to differences that may arise in final assessments from initial economic estimates.

We identified individual and corporate taxation revenues as a key audit matter because:

Audit work to address this key audit matter included:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Government of Saskatchewan’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Government of Saskatchewan’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Government of Saskatchewan to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Government of Saskatchewan as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision, and review of the audit work performed for purposes of the group audit. We remain solely responsible for the audit opinion.

Financial Assets

Cash and cash equivalents

Accounts receivable (schedule 1)

Loans receivable (schedule 2)

Investment in government business enterprises (schedule 3)

Sinking fund investments (schedule 4)

Portfolio investments (schedule 5)

Derivative assets

Other financial assets

Total Financial Assets

Liabilities

Accounts payable and accrued liabilities (schedule 6)

Unearned revenue (schedule 7)

Pension liabilities (note 5)(schedule 8)

General debt (schedule 9)

Obligations under long-term financing arrangements (schedule 10)

Derivative liabilities

Other liabilities (schedule 11)

Total Liabilities

Net Debt

Non-Financial Assets

Tangible capital assets (schedule 12)

Inventories held for consumption (schedule 13)

Prepaid expenses

Total Non-Financial Assets

Accumulated Deficit¹

¹ Comprised of:

Accumulated operating deficit

Accumulated remeasurement gains

Accumulated Deficit

Revenue

Taxation

Non-renewable resources

Net income from government business enterprises (schedule 3)

Other own-source

Transfers from the federal government

Total Revenue (schedule 14)

Expense

Health

Education

Social services and assistance

Protection of persons and property

Agriculture

Financing charges (schedule 16)

Community development

Transportation

General government

Economic development

Environment and natural resources

Total Expense (schedule 15)

Operating (Deficit) Surplus

Accumulated operating deficit, beginning of year

Operating (deficit) surplus

Accumulated Operating Deficit, End of Year

Budget figures, as presented in the 2025-26 Saskatchewan Provincial Budget, are revised as a result of the restatement for change in accounting policy (note 9).

Unrealized Gains (Losses) Attributable to:

Foreign exchange

Derivatives

Portfolio investments

Total Unrealized Gains (Losses)

Realized net gains on portfolio investments, reclassified to statement of operations

Other comprehensive (loss) income (schedule 3)

Net Remeasurement Gain (Loss)

Accumulated remeasurement gains, beginning of year

Accumulated Remeasurement Gains, End of Year

Operating (Deficit) Surplus

Tangible Capital Assets (schedule 12)

Acquisitions

Amortization

Disposals

Write-downs

Net Acquisition of Tangible Capital Assets

Net (Acquisition) Use of Other Non-Financial assets

Increase in Net Debt from Operations

Net remeasurement gain (loss)

Increase in Net Debt

Net debt, beginning of year

Net Debt, End of Year

Budget figures, as presented in the 2025-26 Saskatchewan Provincial Budget, are revised (note 9).

Operating Activities

Operating (deficit) surplus

Non-cash items included in the operating (deficit) surplus

Net income from government business enterprises (schedule 3)

Other non-cash items included in the operating (deficit) surplus (schedule 18)

Net change in non-cash operating activities (schedule 18)

Dividends received from government business enterprises (schedule 3)

Cash (Used for) Provided by Operating Activities

Capital Activities

Acquisition of tangible capital assets (schedule 12)

Proceeds on disposal of tangible capital assets

Cash Used for Capital Activities

Investing Activities

Net increase in loans receivable

Acquisition of portfolio investments

Disposition of portfolio investments

Sinking fund contributions for general debt (schedule 4)

Sinking fund redemptions for general debt (schedule 4)

Cash Used for Investing Activities

Financing Activities

Proceeds from general debt

Repayment of general debt

Proceeds from repurchase of general debt

Repurchase of general debt

Decrease in obligations under long-term financing arrangements

Increase (decrease) in other liabilities¹

Cash Provided by Financing Activities

Increase in Cash and Cash Equivalents

Cash and cash equivalents, beginning of year

Cash and Cash Equivalents, End of Year