Tanking oil prices are forcing the Saskatchewan government to put the brakes on spending.
A budget update shows the province is projecting a deficit of $262 million compared with a surplus of just over $100 million that was forecast in March.
Finance Minister Kevin Doherty says a continued decline in oil prices has increased the financial challenge facing the province.
The province also says there are pressures because of a smaller harvest and a slowing growth in the economies of some of Saskatchewan's major trading partners.
Expenses are up $99 million from the budget, in large part because of the cost of fighting forest fires last summer.
While the province is spending more, it's also bringing in less money because revenue is down $270 million from the original budget forecast.