The Alberta government is projecting a $9.4‑billion deficit for the 2026‑27 fiscal year, higher than originally forecast last year.
Finance Minister Nate Horner tabled the budget in the Alberta Legislature on Feb. 26, stating, “this is the reality in front of us,” with Budget 2026 forecasting additional deficits of $7.6 billion in 2027‑28 and $6.9 billion in 2028‑29.
Horner said the forecast deficit will require tough choices, but added there will be no major program cuts and no increase in personal income taxes.
Healthcare, education and economic growth are key areas of focus for the provincial government, with $34.4 billion committed to health care, $10.8 billion to education and $38 billion to the public sector.
Total healthcare spending is set at $34.4 billion in 2026‑27 to expand access across the province, including surgical services, emergency care, primary care teams, assisted living and continuing care, and mental health and addiction supports.
Operating spending for kindergarten to Grade 12 education is projected at $10.8 billion in 2026‑27, up about seven per cent from the previous year. The province also plans to add 3,000 teachers and 1,500 educational assistants over the next three years and increase supports for students with specialised learning needs and complex classrooms.
Horner said the budget includes $28.3 billion in capital projects to cover hospitals, schools, transportation corridors, water systems and rural connectivity. When tabling the proposed budget, he stressed the importance of infrastructure for economic growth and quality of life.
“Albertans are not afraid of hard years,” Horner said. “This province was built by people who faced the hard trail ahead — and never backed down.”
According to Horner, the budget emphasises economic diversification, workforce development, trades training and youth employment.
It includes a $20‑million Youth Employment Incentive focused on connecting young Albertans with job opportunities.
Horner said the budget reflects the government’s commitment to fiscal responsibility by maintaining efficiency measures and program reviews and aiming for the Heritage Savings Trust Fund to be $250 billion by 2050. He said the government is expecting growing oil production and exports by 2035 through new pipelines and expanded market access.
Regional highlights
Peace Country and northern Alberta
Northern Alberta is expected to see 22 school projects underway as part of the province‑wide $3.3‑billion school capital plan, including three new projects announced in Budget 2026.
Highway work in the north includes $138 million over the next three years for safety and roadway improvements, with $81 million earmarked to widen Highway 40 between Grande Cache and Hinton.
Cold Lake and Bonnyville
Budget 2026 includes $5 million over two years to build a permanent roadside pullout for the Cold Lake watercraft inspection station. According to the government this will improve road safety and compliance with fisheries legislation.
The budget says Cold Lake and Bonnyville will also benefit from northern municipal infrastructure funding and highway investments.
Central Alberta
$1 billion has been committed over the next three years to redevelop the Red Deer Regional Hospital Centre. The budget also includes $279 million over three years to twin Highway 11 from Red Deer west to Rocky Mountain House.
Central Alberta will see 27 school projects underway, including 10 new projects announced in Budget 2026.
Southern Alberta
Southern Alberta will see 30 school projects underway, including three new projects in Budget 2026.
The budget commits $59 million over three years toward development of a catheterization laboratory at Chinook Regional Hospital in Lethbridge and ICU enhancements at Medicine Hat Regional Hospital, and $74 million over three years to replace the Cardston Health Centre.
Also included is $152 million over three years to twin Highway 3 from Taber to Medicine Hat.
