Saskatchewan budget overlooks small firms as input costs continue to climb

 The 2026-27 Sask. Budget highlights large capital projects while small businesses continue to face rising costs and barriers to investment, including the PST on capital investment  

Regina, March 18, 2026 – The Canadian Federation of Independent Business (CFIB) says today’s Saskatchewan budget fails to address mounting cost pressures on small businesses and misses an opportunity to strengthen the province’s entrepreneurial environment.

“While the Saskatchewan government touts major private capital investment growth — tied mostly to large -scale projects — many small firms continue to say they’re struggling to keep up with the rising cost of capital. The inability to write off the provincial sales tax (PST) on capital purchases, something businesses can do in most other provinces, remains a key barrier preventing smaller businesses from investing, scaling, and improving productivity,” said Brianna Solberg, Director, Legislative Affairs, Prairies & the North.

In addition to increased capital costs, small businesses are currently facing SGI premium increases, higher SaskPower rates, and rising fuel prices — all while navigating significant economic uncertainty. Ongoing trade tensions with the United States are adding further pressure, with nearly two-thirds of Saskatchewan businesses reporting they are directly or indirectly affected by tariffs.

Weak consumer demand is compounding the issue, leaving many firms unable to absorb or pass on rising costs. As a result, hiring is slowing, investments are being delayed, and long-term planning is becoming increasingly difficult. Over half of small firms say they would not recommend starting a business today. If these conditions persist, we risk continuing a trend where business exits outpace new entries, deepening what CFIB is calling an entrepreneurial drought in Saskatchewan.

“Small and medium-sized businesses (SMEs) are not a niche segment of Saskatchewan’s economy,” added Solberg. “They represent over 99% of all businesses in the province and employ about 64% of private sector workers. They provide stability in uncertain times and anchor communities across Saskatchewan. However, in this budget, many will feel they were largely overlooked.”

“CFIB appreciates that the province has avoided introducing new costs for small firms, and we recognize the need to balance competing priorities. However, practical measures to support investment and growth for small firms remain absent.”

One example CFIB has been calling for from the province, would be to increase small business corporate income tax threshold to $700,000. For the average Saskatchewan business earning over $600,000 in net income, the savings would be $11,000 annually. Savings would apply to approximately 2,250 businesses —roughly 7% of the total number of businesses.¹ CFIB estimates the total cost to government would be about $8.8 million annually, or just 0.04% of this year’s projected revenues — while returning the same amount in cumulative savings to businesses across the province, allowing them to invest in their operations and the local economy.

Exempting capital expenditures, including machinery and equipment, from the PST also remains one of the most impactful steps the Saskatchewan government could take to enhance productivity and competitiveness. CFIB estimates this could return roughly $197 million to the provincial economy through small business reinvestment.

“Large projects matter, but so do the thousands of small businesses that form the foundation of Saskatchewan’s economy,” concluded Solberg. “At a time of rising costs, labour shortages, and trade uncertainty, small firms are still waiting for a clear signal that they are a priority.”

For media enquiries or interviews, please contact:

Brianna Solberg, CFIB

306-713-8071

Brianna.Solberg@cfib.ca

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region, including over 4,100 in Saskatchewan. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.