Province has budget surplus
By Lethbridge Herald on July 4, 2025.
Al Beeber
Lethbridge Herald
Nearly eight months after the Alberta government predicted a budget surplus of $4.6 billion at the end of the 2024-25 fiscal year, that figure has risen substantially.
The province now says the budget surplus was $8.3 billion due largely to higher than anticipated resource revenue as well as corporate and personal tax revenue and investment income.
This is the fourth consecutive surplus reported by the Alberta government which says it will use the surplus “to fortify Alberta’s economic position, repay debt and save for the future.”
Revenue in 2024-25 was $82.5 billion which is $8.9 billion more than forecast in the 2024 budget.
That revenue included $22 billion from non-renewab resources which is up from $17.3 billion at the budget.
The province says the increase was primarily driven by higher bitumen royalties due to lower exchange rates and narrower light-heavy oil price differentials.
During 2024-25, the price of a barrel of West Texas intermediate crude oil averaged US $74.34 barrel which was modestly higher than the $74 per barrel that was predicted by the province.
“The light-heavy oil price differential averaged US$13.06 per barrel in 2024-25, $2.94 narrower than estimated in budget, influenced by increased demand for heavier crude and the completion of the TMX expansion project,”said the province.
Tax revenue amounted to $30.4 billion which was $1.7 billion higher than estimated. That figure includes $8.1 billion in corporate income tax – $1.1 billion more than predicted at budget.
The province generated a record $16.1 billion in personal income tax which was $500,000 more than anticipated. This growth is attributed to an increase in personal incomes and Alberta’s growing population.
As of March 31, the Heritage Fund value reached a record $27.2 billion, which amounts to growth of $4.2 billion over the previous year. This growth was due to $1.9 billion in investmentincome and the reinvestment of $2 billion in surplus cash from 2023-24.
The province ended the year with $5.1 billion in surplus cash with half going toward improving Alberta’s net financial position through debt repayment or savings in the Heritage Fund. The other half will be put into the Alberta Fund for use in the future.
Nate Horner, president of the Treasury Board and Minister of Finance, said in a statement that “this surplus shows Alberta’s strength. The road ahead may be rough, but Alberta is built to last.Â
“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.”
The government says that rapid population growth and falling interest rates helped to bolster the Alberta economy.
17-16
A budget surplus on the backs of vulnerable Albertans.
Shame. Shame.