Saskatchewan Finance Minister Engages with Saskatoon Business Community on Provincial Budget
Saskatchewan Finance Minister Jim Reiter is actively engaging with stakeholders following the presentation of the provincial budget, addressing key questions about the province's projected oil revenues for the upcoming fiscal year. Reiter spoke at an event organized by the Saskatoon Chamber of Commerce, held at Lucky Bastard Distillers on March 20, 2026.
Cautious Oil Price Projections and Economic Implications
The province has projected oil to sell for just under $60 per barrel. However, recent geopolitical events, including the United States attacking Iran and the closure of the Strait of Hormuz, have driven prices up to as high as $100 per barrel in recent days. According to one economist, if oil prices remain at this elevated level, it could result in more than $600 million in additional revenue for Saskatchewan.
Reiter acknowledged that the current projection for oil prices is "cautious." He emphasized that while increased oil prices can benefit the province, there are also significant drawbacks. Specifically, he highlighted the impact of a rising Canadian dollar, noting that "for every cent that (dollar) increases, that costs the provincial treasuries about $44 million, there’s offsetting expenses."
Rising gas prices and their effect on inflation were also cited as concerns by the finance minister during his address.
Resource Royalties and Economic Stability
During a question-and-answer session with chamber CEO Jason Aebig, Reiter was asked about resource royalty revenues. The finance minister stated that he does not believe changes are necessary at this time, pointing to recent investments in potash as a reason to maintain the current trajectory. "If there’s not stability in government and in the royalty structure, those investments don’t happen," he explained.
Reiter reiterated that the decision to take on debt instead of raising taxes or cutting services was the best direction for the province, emphasizing a balanced approach to fiscal management.
Municipal Revenue Sharing and Opposition Criticism
Behind the podium where Reiter delivered his address was a large novelty cheque for more than $71 million, representing the amount the City of Saskatoon will receive from municipal revenue sharing in the recent budget. Reiter noted that municipal revenue sharing is up 8.5 percent from the previous budget and pushed back on opposition claims that the province was downloading costs onto local governments. "As our economy grows, so does municipal revenue sharing," he asserted.
Kim Breckner, NDP MLA for Saskatoon Riversdale and opposition critic for trade and export development, attended the event. She criticized the recent budget for not adequately addressing the rising cost of living, adding that the government declined to pause the PST on gas and rising power rates. "We need to put those affordability measures in to help small, medium businesses," she said.
Breckner suggested that supports proposed by the opposition could be funded through better management, citing the Saskatchewan Health Authority's botched rollout of the AIMS payment system as an example of inefficiency.
The engagement with the Saskatoon business community underscores the ongoing dialogue between provincial officials and local stakeholders as Saskatchewan navigates economic challenges and opportunities in the coming fiscal year.
