Premier Danielle Smith defended the massive income-tax break in Alberta’s proposed 2025 budget on Friday while critics accused her of giving with one hand while taking with the other.

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 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,

The looming threat of U.S. tariffs along with a potential tax cut are expected to dominate Alberta's budget today.