The 2026 Alberta budget, announced amid declining oil prices and increasing demand for services, is projected to run at a significant deficit of $9.4 billion for the fiscal year 2026-27. This deficit is expected to gradually decrease in the following two years, but the province will remain in the red with anticipated deficits of $7.6 billion for the next year and $6.9 billion in 2028-29. A primary driver of this financial shortfall is a $3.1 billion decrease in non-renewable resource revenue due to the fluctuating global oil market and various economic uncertainties.

In an effort to mitigate the financial gap, the Alberta government has opted not to raise personal income taxes. Instead, they plan to implement increases in various fees and charges. The province is expecting to collect an additional $360 million in the upcoming fiscal year through hikes in premiums, licenses, and other fees, with this figure projected to rise to $424 million in subsequent years. This reflects a strategy aimed at balancing the budget without placing additional burden on personal income tax, thus shifting the financial responsibilities to other areas that affect every resident's wallet.

Furthermore, a significant aspect of the budget involves increases in education property taxes, primarily impacting cities like Calgary, which will contribute an estimated $1.2 billion to the province's education requisition. This not only underscores the financial obligations passed down to municipalities but also highlights the broader implications on households as residents face heightened costs attributed to both increases in fees and property taxes. The financial landscape of Alberta is thus set to shift markedly in the coming years as these changes take effect, raising concerns about affordability for residents amid ongoing economic challenges.