Alberta Forecasts Record-Setting C$9.4 Billion Budget Deficit on Lower Oil Prices
Alberta, Canada's oil-producing province, has forecasted a budget deficit of C$9.4 billion for its 2026/27 fiscal year due to lower global crude prices.
The provincial government relies heavily on royalties and taxes paid by oil and gas companies to fund public services like healthcare and education, with non-renewable resource revenue accounting for 18% of total revenue in 2026/27.
Alberta's economy is deeply dependent on global crude prices, which slumped in 2025 due to concerns about oversupply. The province forecasts a benchmark West Texas Intermediate oil price will average $60.50 per barrel in 2026/27, down from $74.34 just two years ago.
The projected deficit of C$9.4 billion exceeds what is permitted under provincial law by C$4.5 billion and would put Alberta in violation of its own legislation prohibiting more than three consecutive years of deficit financing.