EDMONTON — Alberta's government projected a $9.4 billion deficit for the upcoming fiscal year when they presented Budget 2026 on Thursday, an $5.3 billion increase from the year prior. "This year, Alberta's finances reflect global uncertainty, rising costs and our staggering population growth, all of which are placing real pressure on our essential services, stretching our systems capacities to the limit," said Finance Minister Nate Horner. "Budget 2026 is our plan to face a hard year head-on. It focuses on what matters, makes careful choices and takes decisive action where it counts."Premier Danielle Smith previewed the budget by telling Albertans that the deficit was largely driven by low oil prices, combined with an overwhelming number of immigrants coming to Alberta under Justin Trudeau, who lacked employment.Budget 2026 projects Alberta's population will grow by 1.1% in 2026 and maintain those low numbers in the years to come; however, years like 2024, when Alberta's population increased by 4.7%, will continue to negatively impact Alberta's economy. The province's budget now projects deficits in each of the next three years, with a $7.6 billion deficit in 2027 and a $6.9 billion deficit in 2028. .Budget 2026 includes an $81.9 billion expense estimate, partially offset by projected $74.6 billion in total revenues. This deficit would increase the province's taxpayer-supported debt to $108.9 billion, a $16.8 billion increase from Budget 2025. The latest projections are based on oil being priced at $60.50 USD per barrel, which is a $1 decrease from the estimate in 2025, and down $13.84 in 2024. The decline in oil prices translates to a projected $9.8 billion in revenue from bitumen royalties, $3.1 billion lower than 2025 and $7.5 billion lower than 2024. Oil is expected to rise after 2026, with the budget forecasting it to be listed at $67 per barrel in 2027. Portions of the losses from royalties are partially offset by projected $30.5 billion in tax revenue, $2.1 billion more than Budget 2025, and the estimate will rise to $33.2 billion by 2028."We all know Alberta's economy and fiscal outlook continue to face a shift in the global economic landscape, and so we're taking a responsible conservative approach to our forecast," Horner said."Projections in budget 2026 are grounded in evidence and facts, not knee-jerk reactions to current events or the ebbs and flows in the oil market.".Budget 2026 plans to raise the tourism levy from 4% to 6% in 2026, and it also unveiled a new 6% rental vehicle tax that will take effect in January 2027.The provincial government claims it designed the budget to prioritize "needs" over "wants" by focusing on important services and programs like health care, education, workforce training, and supporting safe and thriving communities. "I recognize that this is a tough pill to swallow, but this deficit reflects our commitment to providing top quality services like education, health care and social supports, while managing substantial drops to the price of oil," Horner said."We want to be clear with Albertans that we won't sacrifice our public services to make our deficit disappear, and we aren't raising personal income tax."Albertans are also expected to see an increase in the education property tax, though, in 2026, with residential rates increasing 4.41% and commercial rates increasing 4.25%. This is expected to increase revenue from the tax to $3.6 billion in 2026, $468 million more than the expected 2025 total. Which is expected to cover 33.4% of Alberta's education operating expenses in 2026, which are projected to total $10.8 billion. Those expenses include $1.8 billion committed to assisting students with specialized learning needs, $355 million to address class size and complexity, and an increase in the number of teachers and education assistants. The budget commits $1.4 billion towards hiring 3,000 additional teachers and 1,500 educational assistants by 2029. It also commites $3.3 billion to the construction and design of new and already existing school projects..Alberta's health sector is expected to receive the lion's share of funding from Budget 2026, with total expense projections of $34.4 billion, of which $26.5 billion will be split between the Ministry of Hospital and Surgical Health Services and the Ministry of Primary and Preventive Health. "These decisions prioritize the health and well-being of Albertans and improve our entire health care system budget," Horner said. Inside of that, Budget 2026 commits $6 billion to Acute Care and and $7 billion to physician compensation and development. Budget 2026 also relays the province's commitment to expanding operating room capacities and reducing surgical wait times through new and expanded facility construction and leveraging chartered facilities, with the goal of adding 50,000 additional surgeries in the next three years. In total, Budget 2026 commits $4.9 billion to expanding the capacity of Alberta's health care system over the next three years. The provincial government also announced a new provincial corporation, Health Shared Services, intended to centralize and deliver services shared between the four health ministries. .The Ministry of Assisted Living and Social Services is allocated $12.2 billion in total expenses under Budget 2026, with $6.4 billion for non-health-related expenses. Its primary focus is on helping vulnerable Albertans, including seniors, people with disabilities, and individuals facing homelessness or who are in need of temporary help. This area is projected to see a $90 million increase in expenses under Budget 2026, which includes the provincial government's commitment to address hospital wait times by building more assisted living facilities to help get patients who no longer need hospital care out of hospitals and into community care facilities. There will be cost saving in the Social Services; however, as Budget 2026 indicated the provincial government's intention to lower the income threshold by 9% for individuals receiving Alberta Seniors Benefits, effective July 1. This is projected to save Albertans $23 million in 2026 and $31 million in subsequent years. "We will still have the highest threshold in the country, I think we will be tied with New Brunswick and the three territories," Horner said. "And the benefit amount itself didn't change, but we're, we're just looking everywhere we can to not be outliers, but not make Alberta less generous than anyone."Funding changes will also affect individuals with disabilities, with an expected savings of $44 million in 2026, increasing to $177 million by 2028. .Budget 2026 focuses on Alberta's workforce and education through the Ministry of Advanced Education, which works to deliver an accessible, affordable, and well‑coordinated system that supports high‑quality learning, skills development, and labour‑market responsiveness for adults in Alberta. Advanced Education is projected to have $7.1 billion in operating expenses in 2026, which is a $55 million, 0.8% increase from the previously forecasted total, and $475 million more than Budget 2025. A large majority of the funding will go towards addressing the increased space needed for apprenticeships and other high-demand jobs, as well as the growing number of students. Budget 2026 commits $96 million in 2026-27 through the Apprenticeship Learning Grant to support the increased demand for apprenticeship seat capacity. It also commits $355 million over three years to support already existing Targeted Enrollment Expansion initiatives, and $148 million to new ones, such as health care aides and nursing programs.
