Budget 2026 is the third budget from United Conservatives Party’s second mandate. This is the fourth budget under Premier Danielle Smith and the third under Finance Minister Nate Horner.
Over the last week, the Premier has assured Albertans that while considerations must be made to address the shortfall in resource revenues, the province would not be cutting frontline services.
Alberta’s fiscal situation continues to be impacted by global economic uncertainty and revenue volatility. Declining commodity prices have significantly impacted the provinces’ revenues while inflation has dramatically increased both operating and capital costs.
The central theme of Budget 2026 is to be “Focused on What Matters”. The government is aiming to address a series of unique challenges that are occurring simultaneously.
Revenue
- Personal Income Tax: $15.933 billion
- Corporate Income Tax: $7.300 billion
- Other Taxes: $7.237 billion
- Resource Revenue (bitumen): $9.688 billion
- Resource Revenue (other): $3.525 billion
Capital Spending
- $4.9 billion for health infrastructure
- $3.3 billion for education infrastructure
- $7.1 billion in municipal infrastructure support
- $4.2 billion in Capital Maintenance Renewal
- $1.1 billion for social infrastructure supports
- $2.7 billion for highway twinning, expansion and other road and bridge projects
- $785 million for PSIs facilitating skills development
- $504 million to support public safety
New Tax Information
Budget 2026 introduces the new Vehicle Rental Tax, establishing a 6 per cent levy on passenger-vehicle rentals picked up in Alberta with expected implementation date of January 1, 2027. In 2027-28, the first full year of implementation, the tax is expected to raise $36 million.
Heritage Fund
For the first time, Alberta’s Heritage Fund is now worth over $30 billion. This growth is as a result of the provinces move to fully reinvest the fund’s income while strengthening the fund’s governance as a part of the government’s goal to grow the fund to at least $250 billion by 2050.
Energy Prices and Revenues
Energy assumptions list
- WTI: $60.50 US$/bbl.
- WCS:$65.30 CAD$/bbl.
- Light-Heavy Differential $13.00 $US$/bbl.
- Natural Gas Price 3.00 CAD$/GJ
Capital Plan
The 2026 Capital Plan commits $28.3 billion over the next three years, representing a $2.2 billion increase from Budget 2025. The Capital Plan provides funding aimed at relieving capacity pressures on public infrastructure, especially on schools and health care facilities. Altogether, these projects are expected to sustain more than 31,000 direct jobs and 14,500 indirect jobs each year through 2028–29.
Health
As part of their healthcare refocusing strategy, the government has now established four provincial health agencies, Acute Care Alberta, Primary Care Alberta, Assisted Living Alberta and Recovery Alberta. Overall, Health spending has increased by $4.799 since last year’s budget with significant investments across the four agencies. Budget 2026 provides funding to deliver 50,000 additional surgical procedures over the next three years by partnering with chartered surgical facilities to expand operating room space and reduce wait times.
Physician Compensation has been increased by $427 million from the third quarter forecast, reflecting reflects higher service volumes, increased patient complexity and rate adjustments. Additionally, the Ministry of Mental Health and Addiction will invest $264 million to support the Continuum of Care strategy and open five Indigenous recovery communities this year bring the total number of live-in addiction facilities in the province to nine.
Memorandum of Understanding
Recent intergovernmental decisions, such as creating the Major Project Office, signing the Canada‑Alberta Memorandum of Understand, and new commitments to improve trade‑related infrastructure, are expected to encourage more private‑sector investment. These efforts aim to support growth in areas like transportation, electricity, clean energy, and technology over the next several years and are expected to have significant impacts on government revenues.
