Alberta Ditches Deficit Forecast as Oil Prices Soar
Alberta's fiscal picture has undergone a significant transformation since its budget update in February. The province now forecasts a $2 billion surplus for 2026-27, marking a major shift from the projected $9.4 billion deficit just three months ago. This represents an improvement of $11.4 billion in the province's fiscal position in just one quarter.
The surge is largely attributed to higher oil prices, with Alberta now expecting $23 billion in non-renewable resource revenue, up $9.7 billion from the budget forecast. The West Texas Intermediate oil assumption has also been raised to US$73.50 per barrel, compared to US$60.50 in Budget 2026.
The government plans to protect services while keeping spending under control, according to Jason Nixon, President of Treasury Board and Minister of Finance. He stated that Alberta's government will not waste the opportunity presented by improved economic conditions.