REGINA - The Saskatchewan government is cutting spending and has implemented a hiring freeze as it tries to bring down a ballooning deficit of about $1 billion.

Finance Minister Kevin Doherty has released a mid-year budget update that shows a $400-million drop in revenue from the June budget.

Doherty says low oil and potash prices are having a greater impact on revenue than expected, but corporate income tax, personal income tax, provincial sales tax and fuel tax are also down.

He says significant restraint measures are needed to start moving the provincial budget back to balance.

Doherty says those measures will be brought in now and more will  follow in next year's budget.

The government had projected a deficit of $434 million when it introduced the budget.