Alberta’s govt. unveiled Budget 2026 with $9.4 billion deficit, increase to health and education spending

Feb 26, 2026

RED FM News Desk

Alberta’s government unveiled Budget 2026 Tuesday, confronting a stark $9.4 billion deficit driven by soaring costs, volatile global energy markets, and unprecedented population growth. Finance Minister Nate Horner rose in the legislature to deliver the fiscal blueprint, stressing transparency from the outset: “Albertans deserve to hear that first. Not last.”

Despite the shortfall—larger than last year’s projection—the budget spares households from tax hikes or sweeping program cuts. Last year’s personal income tax reduction remains intact, with savings hitting paycheques again this year. “We’re choosing to take the hit on our books rather than put that strain on Alberta’s households,” Horner said.

The plan channels record funding into core services battered by rapid influxes of newcomers, outpacing revenue growth. Health care leads with $34.4 billion overall, including $13.8 billion for hospitals and emergencies, $7.7 billion for physicians, $525 million to deliver 50,000 extra surgeries, and $223 million to bolster cancer care.

Education gets a historic $10.8 billion in 2026-27, hiring over 3,000 teachers and 1,500 assistants while allocating $1.4 billion to tame class sizes amid surging enrolment. Public sector pay totals $38 billion—54% of the operating budget—to retain frontline workers like nurses and paramedics.

Economic measures include a $20 million Youth Employment Incentive, trades training, and pushes for data centres and export pipelines to double oil output by 2035. Capital spending hits $28.3 billion for hospitals, modular classrooms, highways, water systems, and rural broadband.

Fiscal guardrails feature red tape cuts saving businesses $3 billion since 2019, program efficiencies, and Heritage Fund growth toward $250 billion by 2050. A provincial referendum on October 19, 2026, will gauge public views on curbing unsustainable population pressures.

Alberta boasts Canada’s lowest taxes, top GDP per capita, and strongest job growth, Horner noted, framing the budget as disciplined preparation: “Albertans are not afraid of hard years… If we stay focused, Alberta’s best days are still ahead.”