CIBC Says Alberta's Higher Provincial Debt to Be Covered Mainly by Long-Term Debts

06:05 AM EST, 02/27/2026 (MT Newswires) -- The province of Alberta in Canada is budgeting for a larger deficit in the upcoming fiscal year, with a $9.4 billion shortfall, or 1.9% gross domestic product, up from a revised $4.1 billion, 0.8% GDP, estimate for the outgoing year, said CIBC.

A fairly conservative oil price assumption and its impact on resource revenues partly explain that move, although the province is also expecting a 5% increase in operating expenditure as it continues to spend in priority areas such as education and health, noted the bank.

The wider deficit expected for the upcoming fiscal year will see borrowing requirements rise to $20.9 billion from $15.9 billion in fiscal 2025/26, pointed out CIBC.

That will be satisfied through $15.7 billion of long-term debt, while the remainder will be financed through an increase in short-term debt outstanding, stated the bank.

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