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,

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.

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.

The province is projecting a $5.2-billion deficit, but is offering income tax cuts that will pull more than $1-billion from provincial coffers