REGINA — Premier Brad Wall says Saskatchewan must make tough decisions in its upcoming budget to avoid an increase in overall spending.

Wall told about 500 delegates at the Saskatchewan Party's annual convention that the government is facing a challenge because of a sharp decline in potash revenue.

The drop is so bad that the province has to pay back money it collected from potash producers who overpaid on royalties.

Wall says the March 24 budget will be about getting spending under control and reducing the size of government.

But he also says the province will be "more than just fine" and will continue to lead the country economically.

The premier predicts Saskatchewan could leap past Alberta as the No. 1 producer of conventional oil.