Premier Brad Wall told delegates to the Saskatchewan Urban Municipalities Association convention that the province's economy is strong, but there are challenges ahead in balancing the budget.
Wall said revenue from natural resources such as potash and oil is down.
But the premier added there's been an increase in other revenue and that's a good thing because it means the economy is diversifying.
The Saskatchewan budget is to be tabled March 20.
Saskatchewan isn't the only province with worries — falling resource revenues are expected to result in a $6-billion revenue shortfall in Alberta's budget next month.
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