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March 02, 2026ALBERTA BUDGET 2026-27 The Province of Alberta released its provincial budget for 2026-27 on February 26, 2026.
Alberta's 2026-27 budget anticipates a deficit of $9.37 billion, widening from the $4.13 billion deficit now forecast for the 2025-26 fiscal year. Over the subsequent two fiscal years, Alberta's deficit is projected to contract to 6.9 billion by 2028-29.
Alberta's provincial government revenues are projected to contract by 1.0% in 2026-27 while expenditures are projected to rise by 5.7%. For 2027-28, revenues are projected to grow by 5.9% while expenditures rise 3.1%. In 2028-29, revenue growth is projected at 3.3% while expenditures grow 2.2%.
Measured as a share of GDP, the footprint of provincial government in Alberta's economy amounts to 17.1% of GDP in 2026-27. This is projected to shrink slightly to 16.3% of GDP by 2028-29. Alberta's deficit for 2026-27 amounts to 1.9% of projected 2026 nominal GDP. The deficit is projected to shrink to 1.3% of GDP by 2028-29.
Alberta's net debt is expected to amount to 10.5% of GDP in 2026-27. By 2028-29, Alberta's net debt is projected to amount to 12.9% of GDP.
Alberta's 2026-27 Budget expenditures amount to $16,507 per capita, funded by revenues of $14,664 per capita and a deficit of $1,844 per capita. Expenditures per capita are projected to rise by $455 by 2028-29 while per capita revenues rise $974 and the per capita deficit declines by $519.
Compared with last year's fiscal plan, Alberta's revenues are projected to be weaker (-$2.84 billion for 2026-27) while expenditures are projected to be higher (+$4.10 billion).
With similar revenues and higher expenditures, Alberta's deficit outlook has deteriorated compared to the 2025-26 deficit projection.
Alberta's economic outlook is highly sensitive to assumptions about prices and activity in oil production. For 2026, the Alberta Budget assumes an oil price ($USD/barrell, West Texas Intermediate) of $60.50 because of global oversupply, rising to $67.00 in 2027-28 as global demand firms up. Alberta's economic growth is projected to slow, with real GDP rising 1.8% in 2026 as decelerating population growth limits consumer spending, residential construction and labour market expansion. Although there is a tailwind from lower interest rates, uncertainty about US tariffs is expected to keep investment muted. With falling oil prices, Alberta's nominal GDP is projected to rise by only 1.9% in 2026. With recovering oil prices and increasing trade diversification assumed for 2027, Alberta's real GDP growth is projected to accelerate to 2.3% in 2027 (6.0% in nominal terms).
Key Measures and Initiatives
Alberta's Budget prioritizes fiscal discipline and focus on priority programs.
Health care
- $34.4 billion in total health expense, including $1.9 billion in new health funding
- $525 million in additional funding for 50,000 more surgical procedures at chartered surgical facilities over the next 3 years
- Targeted investments at the Royal Alexandra Hospital to enhance triage, speed up patient flow and move patients more efficiently through the system.
- Continued funding of $26 million for 30 psychiatric beds and 60 community-based mental health and addiction beds (of which 30 will be added in 2026-27).
- $1.7 million provided to 2 civil societies to support Albertans experiencing overdose or substance disorder
- $804 million in 2026-27 and the following 2 years for improved ambulance deployment and rural staffing
- $223 million additional funding over the next 3 years to expand Cancer Care Alberta’s workforce and clinical capacity
- $91 million over the next 3 years for expanding capacity in emergency departments and operating rooms
- $87 million over the next three years to expand the role of nurse practitioners
- $33 million for compassionate mental health and addictions intervention
- $53 million to operate 9 holistic addiction recovery and rehabilitation communities
- $22 million is provided in 2026-27 to support wellbeing programs and supports for youth
- $298 million for continuing care initiatives and capacity
Education, labour and skills
- $722 million in new funding to support enrolment growth, teacher compensation, improved classroom conditions, and school infrastructure
- $1.8 billion budgeted in 2026-27 to support students with specialized learning needs
- $355 million in 2026-27 and $1.4 billion over 2026-27 to 2028-29 to hire 1,500 more education assistants and 3,000 more teachers
- $3.3 billion to support new and ongoing school projects
- $1.3 billion towards Alberta student loans, scholarships and grants
- $96 million through the Apprenticeship Learning grant
- $148 million over 3 years for new Targeted Enrolment Expansion initiatives to in high demand post secondary programs
- $115 million in workforce strategies
- $16 million for economic immigration programs and services
- $81 million for labour relations, occupational health and safety and employment standards
- $4 million in 2026-27 to support training opportunities for Indigenous people
Building communities
- $20 million to support multicultural and newcomer supports and anti-racism initiatives
- $80 million in capital funding through 2028-29 to expand irrigation capacity and address water supply needs
- $169 million to support effective wildfire mitigation
- $2.4 billion in provincial funding, including $1.1 billion in federal support, over 3-years for light rail projects in Calgary and Edmonton
- $179 million in grant funding in 2026-27 from the First Nations Development Fund
- $38.1 million in 2026-27 to the Alberta Foundation for the Arts
- $9 million to build or enhance sport and recreational facilities
Industry and trade
- $530,000 for engagement on future nuclear projects
- $7 million to support a pre-feasibility study of a bitumen pipeline to the west coast of British Columbia
- $155 million in 2026-27 for the Orphan Well Society
- $60 million for the Film and Television Tax Credit.
- $28 million for the Investment and Growth Fund.
- $15 million for the Invest Alberta Corporation.
- $605 million in 2026-27 for Agriculture support and insurance programs
- $16 million to support the Indigenous Reconciliation Initiative, the Aboriginal Business Investment Fund and the Community Support Fund.
Families and communities
- $2.1 billion to increase access to licensed childcare
- $405 million to the Alberta Child and Family Benefit program in 2026-27
- $768 million for the Affordable Housing Partnership Program over 3 years
- $4.1 million in 2026-27 to prevent elder abuse
- $586.6 million in 2026-27 through the Alberta Seniors Benefit, grants and low-interest home equity loans
- $64 million in 2026-27 for the seniors' Lodge Assistance program
- $217.5 million in 2026-27 to support homeless shelters, Navigation and Support Centres, and housing supports programs
- $105 million in 2026-27 to design and deliver preventive social programs to address key social issues in communities
- $156 million in 2026-27 for mental health and addiction services for children and youth
- $22 million in 2026-27 to build and $53 million to operate recovery community facilities
Alberta Budget 2026-27