Higher than-expected oil prices are pushing the Alberta forecasted surplus to $2.9 billion at the end of 2024-2025.
The government presented its First Quarter update on Thursday, August 29. This report showed the forecasted surplus $2.6 billion higher than expected.
With a stronger surplus than projected at budget, the government continues to invest in the needs of Albertans while managing its debt and saving for the future. The government’s plan to pay down debt, paired with responsible spending, will save Albertans in the long term and sustain vital programs for years to come, said a release.
“People across the country see a bright future for Alberta, and they continue to come here in record numbers. While this population growth is creating challenges and putting pressure on our hospitals, schools and other services, our prudence and discipline are helping to manage these challenges,” said Nate Horner, President of Treasury Board and Minister of Finance.
It does note, the province’s economic growth and outlook brings some challenges as the population is set to surge 4.6 per cent in 2024.
On the revenue side, it is forecasted at $76.2 billion, up $2.7 billion from Budget 2024. Personal income tax revenue has increased $458 million to $16.1 billion, reflecting population growth and gains in Alberta’s labour market.
Non-renewable resource revenue is forecast at $19.8 billion, up $2.5 billion from budget due to higher oil prices, a narrower light-heavy differential,
higher oil production and a lower exchange rate.
Other tax revenue is forecast to be $38 million down from budget, in part because of less tobacco tax revenue and the government’s policy to limit insurance premium increases for good drivers.
They are also seeing expense increasing $101 million from Budget 2024. Operating expense is up by $195 million, mainly due to $125 million more to support enrolment growth and inflation pressures in education.
Disaster and emergency spending to date is $573 million. This has been allocated to disaster and emergency spending from the province’s contingency fund. This includes $550 million to fight the wildfires, $10 million to match donations to the Canadian Red Cross, and $13 million for emergency evacuation payments to evacuees.
