A day after the budget dropped, Premier Danielle Smith held a press conference in Calgary to share the “tough but realistic” budget. She said the income tax cut comes at a crucial time where many Albertans are struggling with the rising cost of living.

Province's new budget means nearly all Albertans will pay less in income taxes, while home and business owners — especially those in Calgary — will pay more in provincial property taxes. The province also expects to take in more money from several other new taxes and fees.

The red ink is mainly driven by an expected drop in oil prices, looming U.S. tariffs and a promised tax break for Albertans: minister

Canada's oil-producing province of Alberta on Thursday forecast a budget deficit of C$5.2 billion ($3.5 billion) for the 2025/26 fiscal year if U.S. tariffs are implemented and decrease government revenues and slow economic growth.

Alberta is forecasting it will end the next fiscal year with a $5.2 billion deficit but that could soar to $8.7 billion under a worst-case tariff scenario outlined in Thursday’s provincial budget.

Alberta’s finances, tied for generations to the steep peaks and sharp valleys of oil and gas prices, are once again plunging deep into deficit, with no immediate relief in sight.

Alberta’s books are set to turn red, according to Thursday’s budget, as the province readies to reckon with three-straight years of projected fiscal shortfalls brought on by tariff-based uncertainty,