The Smith government will table its budget for the 2026/27 fiscal year on Feb. 26. Following last year’s large budget deficit, Premier Smith recently warned “significant” deficits are on the way amid low oil prices. It’s time the Smith government try a new approach and introduce a rainy-day account to help mitigate Alberta’s boom-and-bust cycle.

It’s a familiar story. For decades, when resource prices (e.g. oil) have been relatively high, the Alberta government tends to enjoy surpluses. But when resource prices fall, those surpluses turn to deficits. Indeed, for years we’ve warned that without a change in course, Alberta would spin into deficits when oil prices inevitably fall.

HILL: Here’s how Smith government can help end boom-and-bust cycle in Alberta Back to video

Time for a new approach

Consider that just a few years ago, in 2022/23, oil prices averaged nearly US$90 per barrel and the........

© Edmonton Sun