February 10, 2026
RED FM News Desk
Alberta Premier Danielle Smith says the province is facing “significant” budget deficits as it contends with persistently low oil prices, calling the upcoming provincial budget a “tough” one.
Speaking with RED FM Calgary, Smith said the government has ruled out tax increases and deep cuts to public services, leaving Alberta with little choice but to run multiple deficits in the coming years. The new budget is expected to be unveiled later this month.
Despite the financial strain, Smith said her government will continue to prioritize spending on health care, education and infrastructure, while acknowledging the province cannot fund every initiative at once.
As of November, Alberta was projecting a $6.4-billion deficit for the current fiscal year, based on a lowered benchmark oil price of US$61.50 per barrel. The current budget also forecast deficits of more than $2 billion in each of the next two years, though Smith did not confirm whether those figures are now expected to rise.
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