The Regina & District Chamber of Commerce welcomes the Government of Saskatchewan’s 2026–27 Provincial Budget and its continued focus on supporting a competitive and growing business environment. This year’s budget is being delivered in a period of continued global economic uncertainty, shaped by geopolitical instability, trade disruptions, and shifting market conditions. In that context, Saskatchewan businesses are focused on stability, cost pressures, and the ability to plan and invest with confidence.

Across sectors, our members are navigating challenges related to labour availability, rising operating costs, and evolving market access, while also looking for opportunities to grow and expand. Within this environment, the provincial budget plays a critical role in setting the conditions for business success – through tax policy, infrastructure investment, workforce development, and support for economic diversification. The Chamber’s perspective reflects what we are hearing directly from businesses across Regina: a strong interest in maintaining competitiveness, improving execution on key investments, and ensuring that growth opportunities are accessible across all sectors of the economy. 

Tax Competitiveness & Stability: Maintaining the 1% small business corporate tax rate on the first $600,000 of income reinforces Saskatchewan’s position as one of the most competitive jurisdictions in Canada. Stability in the tax environment remains critical for business confidence and long-term investment.

Property Tax & Municipal Pressures: The budget holds the education property tax mill rate at 6.37 for commercial properties, alongside $392 million in municipal revenue sharing (an 8.5% increase year-over-year) and over $712 million in total municipal support. While the predictability of this model is valued, it will be important to ensure funding keeps pace with infrastructure demands and growth pressures in cities like Regina.

Investment & Sector Growth: The budget emphasizes investment through tools such as the 45% Small and Medium Enterprise investment tax credit for manufacturing and broader trade and export development efforts. We encourage continued exploration of how similar incentives could be expanded across a wider range of industries to support growth across Saskatchewan’s full business community. 

Connectivity & Market Access: Continued support for direct flights from Regina to major U.S. hubs such as Denver and Minneapolis strengthens business connectivity and access to key markets.

Workforce & Labour Availability: Labour availability remains one of the most significant challenges facing businesses. The Chamber welcomes nearly $125 million in workforce development funding, $3.5 million for the Regina Trades and Skills Centre, and expanded apprenticeship opportunities.

Employer-Driven Training: Additional funding of $9.2 million through the Labour Market Transfer Agreement to support employer-driven training and reskilling is a positive step in helping businesses respond to economic change. 

Skills & Post-Secondary Alignment: The budget includes $847 million in post-secondary funding, including $2.2 million for trades expansion at Saskatchewan Polytechnic in Regina. Ensuring training aligns with employer needs will be critical to addressing labour shortages and supporting long-term growth.

Overall, this budget reflects a continued focus on stability and growth. The Chamber looks forward to working with the provincial government to ensure these investments translate into meaningful outcomes for businesses across Regina and Saskatchewan.

Luncheon Q&A Recap

 These priorities were further discussed during last week’s Regina Chamber budget luncheon on Thursday, March 19, with Finance Minister Jim Reiter, where members had the opportunity to engage directly on how the budget will impact Saskatchewan businesses.

Economic Outlook & Fiscal Approach

The Minister emphasized the difficulty of budgeting in a volatile global environment, noting that even small changes in commodity prices can have a significant impact on provincial revenues. For example, a $1 change in oil prices represents roughly $16 million in annual revenue, reinforcing the need for a cautious and flexible fiscal approach.

Within that context, the government chose to maintain spending in key areas—particularly health care and affordability – while accepting an $819 million deficit, rather than reducing services or increasing taxes.

Municipal Pressures & Cost Environment

Building on the budget’s municipal commitments, discussion at the luncheon reinforced the ongoing pressure facing cities. While provincial funding has increased through revenue sharing and infrastructure transfers, the Minister indicated that municipalities will need to prioritize core services within existing funding levels.

Competitiveness & Investment Climate

The Minister reiterated that maintaining a competitive business environment remains a priority, pointing to the 1% small business tax rate and targeted investment incentives as key tools.

He also emphasized that incentive programs – such as the 45% Small and Medium Enterprise Investment Tax Credit for eligible Saskatchewan-based manufacturing investment – are reviewed regularly to ensure they are delivering results and aligned with broader economic goals.

Capital Investment & Local Participation

The province’s $4.3 billion capital plan, including approximately $2.5 billion through Crown corporations and $1.7 billion through SaskPower, was highlighted as a major driver of economic activity.

In discussion, the Minister noted that over 90% of procurement spending is typically awarded to Saskatchewan-based companies, underscoring the significant role local businesses play in delivering on public infrastructure and capital projects.

Energy, Infrastructure & Growth Capacity

The scale of infrastructure investment is intended to support long-term growth, but also brings focus to cost pressures—particularly in energy.

The Minister acknowledged that rising power costs are a broader global challenge and emphasized the importance of continued investment to ensure reliability and support future economic development.

Workforce & Labour Challenges

Labour shortages remain one of the most pressing issues raised by businesses. The Minister confirmed that access to skilled labour is consistently a top concern and highlighted the province’s investments in training and workforce development as part of the solution.

In addition to domestic training programs, the government is also looking to recruitment strategies – including international talent – to help address ongoing gaps, particularly as demographic pressures continue. 

Skills, Training & Retention

Discussion also focused on the importance of aligning training with employer needs. Investments in post-secondary education and trades training were positioned as key to strengthening the long-term workforce pipeline.

Programs such as the Graduate Retention Program, offering up to $24,000 in tax credits, were highlighted as tools to encourage graduates to remain in Saskatchewan and support workforce stability.

Community Safety & Business Environment

Community safety – particularly in downtown Regina – was identified as an ongoing concern for the business community. The government’s approach combines increased investments in policing with longer-term supports for mental health and addictions, including approximately 200 new addictions treatment spaces.

The discussion reinforced the importance of both immediate and preventative measures in improving the overall business environment.

Trade, Connectivity & Growth Outlook

The province reaffirmed its focus on expanding trade and strengthening connections to key markets. Investments in air connectivity were highlighted as an important part of maintaining access for business travel and investment attraction.

Looking ahead, the Minister pointed to strong economic fundamentals – including over 60 major projects underway and approximately $13.6 billion in private capital investment in 2025 – as indicators that Saskatchewan remains well-positioned for continued growth.