Alberta budget 2026 shows $9.4-billion deficit and spending hikes

The Alberta government tabled its 2026 budget that raises health and education spending while projecting a $9.4-billion deficit and rising taxpayer-supported debt.

The Alberta government introduced its 2026 budget under Premier Danielle Smith's United Conservative Party. The plan increases spending on health and education while forecasting a $9.4-billion deficit. Finance Minister Nate Horner attributed the shortfall to a growing population and lower-than-expected oil prices. The budget marks the second consecutive multibillion-dollar deficit and projects further deficits through to 2029. Key points: - The government expects $74.6 billion in revenue and $83.9 billion in spending, including a $2 billion contingency, producing a $9.4-billion deficit. - Taxpayer-supported debt is forecast to rise to about $109 billion in 2026 and to nearly $138 billion by 2029. - Health and education spending are increased above the province's population-plus-inflation measure, with education set at $10.8 billion (up 7.2%) and health at $34.4 billion (up 5.8%). - The budget keeps income tax rates unchanged but increases various fees and levies, introduces a personal rental vehicle tax in 2027, raises the tourism levy to six percent in April, and reduces the Film and Television Tax Credit by $35 million to $60 million. Summary: The budget increases program spending while reporting the largest deficit since the COVID-19 period and projects growing taxpayer-supported debt in coming years. The government says the gap is driven by demographic pressures and weaker oil revenues, and it forecasts further deficits through 2029. Undetermined at this time.