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Alberta's Smith says 'significant' deficits to come, rules out tax hikes and big cuts

  • Jack Farrell

    Jack Farrell

  • Canadian Press

  • February 10, 2026

Premier Danielle Smith speaks to the media at the Legislature in Edmonton, on Wednesday, December 10, 2025. THE CANADIAN PRESS/Amber Bracken

EDMONTON -- Alberta Premier Danielle Smith says "significant" deficits are in store for her province as it tries to grapple with low oil prices.

The government's new budget is set to be unveiled later this month, and Smith says it's going to be a "tough" one.

The premier told RED FM Calgary this week that she has ruled out tax hikes and "deep" service cuts, but says it means the province will need to run multiple deficits.

She says the government will still prioritize health care, education and infrastructure spending but says the government can't do everything.

As of November, the province was forecasting a $6.4-billion deficit for the current budget year based on a reduced average benchmark oil price of US$61.50 a barrel.

The current budget forecasted deficits of more than $2 billion for the next two years, but Smith didn't say if those are now expected to be higher.

This report by The Canadian Press was first published Feb. 10, 2026.