Alberta government expecting a boost in its 2024-25 surplus largely due to oil prices
Alberta's first-quarter fiscal update shows the government expects a surplus of $2.9 billion but won't have surplus cash this year and will need to borrow hundreds of millions of dollars.
Finance Minister Nate Horner said it's an accounting surplus, meaning the money is tied up, so in the meantime the province will need to take on $641 million in short-term borrowing.
"After adjustments and calculations, we forecast we will be left with no surplus cash at the end of 2024-25," he said Thursday.
“That means we must be more measured and responsible in making budgetary decisions,” he said.
“We can't spend beyond our means today.”
The government has no plan to immediately introduce the personal tax cut Premier Danielle Smith promised in the 2023 election that could cost $1.4 billion.
"We're working on bringing in the personal income tax cut, hopefully by the next budget," said Horner.
The increase in the estimated surplus, up by $2.6 billion from only $367 million originally forecast, is being driven largely by income taxes and higher-than-expected oil prices.
The province is pegging the average price of West Texas Intermediate oil to be US$76.50, up US$2.50 per barrel than what was forecast at budget.
In 2024-25, the government plans to spend $73.3 billion -- up $101 million from budget -- and rake in $76.2 billion in revenues.
Population growth in the province is expected to increase to 4.6 per cent in 2024, and will continue to put pressure on hospitals, schools and other services.
"We remain steadfast in our promise to strengthen the health-care system and provide access to top quality education," said Horner.
NDP Opposition finance critic Samir Kayande told reporters the United Conservative government's spending isn't translating into effective services for Albertans.
"I think it's a very reasonable question for the people of Alberta to be asking, 'Where's all this money going?'" Kayande said.
"It's not showing up in the classrooms, it's not showing up in the hospitals. People don't have family doctors. So what am I getting for all this?"
As wildfires continue to hit the province, the cost of firefighting and emergency assistance costs is now at $573 million so far this year, leaving about $1.4 billion in a contingency fund for disasters.
Debt-servicing costs are set to be $3.2 billion, down $181 million from the budget.
Taxpayer-supported debt is estimated to be $86.1 billion as of March 2025, down $1.7 billion.
This report by The Canadian Press was first published Aug. 29, 2024.
CTVNews.ca Top Stories
Son charged with 1st-degree murder after father's death on B.C.'s Sunshine Coast
A 26-year-old man has been charged with first-degree murder in connection to the death of his father on the Sunshine Coast last year.
Loblaw using body-worn cameras at 2 Calgary stores as part of pilot project
Loblaw is launching a pilot program that will see employees at two Calgary locations don body-worn cameras in an effort to increase safety.
China is raising its retirement age, now among the youngest in the world's major economies
Starting next year, China will raise its retirement age for workers, which is now among the youngest in the world's major economies, in an effort to address its shrinking population and aging work force.
Trudeau says Ukraine can strike deep into Russia with NATO arms, Putin hints at war
Prime Minister Justin Trudeau says Ukraine should be allowed to strike deep inside Russia, despite Moscow threatening that this would draw Canada and its allies into direct war.
Driver charged with killing NHL's Johnny Gaudreau and his brother had .087 blood-alcohol level
The driver charged with killing NHL hockey player Johnny Gaudreau and his brother Matthew as they bicycled on a rural road had a blood-alcohol level of .087, above the .08 legal limit in New Jersey, a prosecutor said Friday.
Sisters finally see the Canadian 'aviation artifact' built by their father nearly 90 years ago
Two sisters have finally been reunited with a plane their father built 90 years ago, that is also considered an important part of Canadian aviation history.
What's behind the boom? The Manitoba community that nearly doubled in a decade
For decades, the Town of Ste. Anne was stagnant, but that all changed about 10 years ago. Now it is seeing one of the highest spikes of growth in the province.
Canadian warship seizes 1,400 kilos of cocaine off Central America
A Canadian warship has seized more than 1,400 kilograms of cocaine during an anti-drug-trafficking operation in Central America.
'I couldn't form the words': 23-year-old Ont. woman highlights need for rural health care after stroke
The experience of 23-year-old Muskoka, Ont., resident Robyn Penniall, who recently had a stroke, comes as concerns are being raised about the future of health care in her community.