EDMONTON — The Alberta government on Thursday tabled Budget 2026, which projects a $9.4-billion deficit — the largest since the early COVID-19 crisis, and the second consecutive deficit under Premier Danielle Smith after four years of resource-fuelled surpluses she has spent the better part of two years taking credit for.
Finance Minister Nate Horner described the deficit as "responsible," "transitional," and "the cost of doing whatever is on the cabinet agenda at any given moment." Asked when the budget would return to balance, the Minister said it would, and then declined to specify under which Premier.
Total spending is set to rise to $83.9 billion, up substantially from the prior year, with notable increases in healthcare administration, the new four-agency health system, and a $2-billion contingency fund the government has labelled "for surprises." When asked what surprises the government was anticipating, the Minister said the contingency was the answer to that question.
Taxpayer-supported debt is projected to climb by nearly $17 billion in the coming year, reaching approximately $109 billion by year-end and $138 billion by 2029. The government characterized this as "responsible," noting that the debt would be carried by future Albertans, who, by the time it matures, may not technically still be Albertans, depending on how things go.
Opposition critics noted that the deficit arrives despite Alberta's energy revenues remaining historically strong, raising the question of how the province plans to pay its bills the next time oil prices fall. Horner responded that the government has a plan, and that the plan involves continuing not to release the plan.
In a statement following the budget release, Premier Smith said that Albertans understood the need for "investment" and would not be distracted by what she called "Ottawa-style accounting." She did not specify what about the accounting was Ottawa-style, but noted that critics of the budget were, in many cases, the same critics who had asked her to balance it.