07:05 AM EDT, 03/20/2025 (MT Newswires) -- The province of Saskatchewan in Canada is now projecting a $661 million deficit for the outgoing fiscal year, or 0.6% of gross domestic product, with the deterioration relative to last year's budgeted shortfall of $273 million largely due to increased spending on agricultural insurance claims, said CIBC.

A normalization of spending in that area in the 2025/26 fiscal year is expected to help the province return to a "modest2 $12 million surplus, also driven by an expected 3% increase in revenues, noted the bank.

However, that forecast doesn't account for United States trade tariff impacts and revenues could decrease sharply by up to $1.4 billion, or -7%, according to an analysis done by the province.

For this upcoming year, long-term borrowing is projected to be almost $1.0 billion lower year-over-year at $3.9 billion, as there was some pre-borrowing for the capital plan this outgoing year, added CIBC.