
On Friday, June 27 President of Treasury Board and Minister of Finance Nate Horner shared Alberta’s 2024-25 fiscal year-end results.
Alberta closed the 2024-25 fiscal year with its fourth consecutive surplus, totalling $8.3 billion. The increase is largely due to higher-than-expected resource revenues, corporate and personal income tax revenue and impressive investment income. In the face of rapidly changing economic conditions this year due to global trade challenges, the government will use the surplus to fortify Alberta’s economic position, repay debt and save for the future.
“This surplus shows Alberta’s strength. The road ahead may be rough, but Alberta is built to last. We’re paying down debt, saving for the future and backing the services Albertans count on. This surplus lets us save smart, spend wisely and stand strong for the long haul,” said Nate Horner, President of Treasury Board and Minister of Finance.
Alberta’s economy expanded at a steady pace in 2024, supported by increased pipeline capacity through the spring opening of the Trans Mountain pipeline, record crude oil production and increased natural gas production.
The price of West Texas Intermediate oil averaged $74.34 per barrel over the year, slightly higher than the $74 per barrel forecast in Budget 2024. A narrower light-heavy differential, which increases the price of Alberta’s heavy crude oil, plus a lower exchange rate also propelled higher returns for the energy sector. As a part of a Canada-wide settlement, a $713-million payment from three major Canadian tobacco companies also contributed to the surplus.
Rapid population growth and falling interest rates bolstered the provincial economy. Alberta remained the fastest-growing province in Canada in 2024. With population growth, Alberta saw strong employment gains fuelled by full-time and permanent jobs, which led to more employed Albertans contributing to the tax base. To relieve added pressure on hospitals, schools and infrastructure, the government provided record funding for health care and education and continued to invest in the priorities of Albertans.
The government delivered $1.9 billion in disaster relief, including $702 million to fight wildfires, $191 million for evacuation and recovery, and $1 billion to support drought-hit farmers and producers.
After calculations and adjustments, Alberta ended the year with a $5.1-billion in surplus cash. Following the province’s mandated fiscal framework, half – or $2.6 billion – will go towards improving the province’s net financial position, either through debt repayment or savings in the Alberta Heritage Savings Trust Fund. The other half will be allocated to the Alberta Fund for future use. This can include further debt payments, more savings or one-time initiatives.