Alberta
Alberta announces 11.6 billion surplus
Strong year-end positions Alberta for stability
A solid end to 2022-23 secures Alberta’s long-term financial outlook and provides stability against future economic uncertainty.
Alberta ended the fiscal year with an $11.6-billion surplus, exceeding the Budget 2022 projected surplus by $11.1 billion. In 2022-23, the province paid down $13.3 billion in debt, eliminating an estimated $260 million in debt servicing costs annually and reducing the overall debt burden on Albertans.
The province’s strong financial situation also resulted in the market value of the Alberta Heritage Savings Trust Fund growing by $2.5 billion to $21.2 billion. The Heritage Fund’s year-over-year growth was primarily due to actions taken by the Alberta government to retain $1.25 billion in net investment income from 2021-22 and deposit $753 million into the fund.
Growing the Heritage Fund benefits current and future generations of Albertans by ensuring the province is well equipped to handle future uncertainty.
In March of this year, Alberta’s government made legislative changes to ensure the fund continues to grow to support Albertans now and in the future. These changes allow the government to retain all investment income within the Heritage Fund instead of it being transferred to general revenue.
“The 2022-23 year-end report is a very positive one. We promised to keep our economy moving forward and Alberta is reaping the benefits. Albertans can rest easy knowing that Alberta’s prosperity today means more stability tomorrow as we continue to pay down debt and save for the future.”
Alberta’s government remains committed to responsible financial management. For the current and subsequent years, Alberta’s new legislated fiscal framework will continue to address Alberta’s unique economic and revenue volatility. The framework requires government to put at least half of any surplus toward debt repayment, with the remainder going toward additional debt repayment, the Heritage Fund or one-time initiatives that do not permanently increase government spending.
Revenue
Revenue in 2022-23 was $76.1 billion, $13.5 billion more than estimated in Budget 2022, including:
- $25.2 billion in non-renewable resource revenue, $11.4 billion more than estimated in Budget 2022.
- $26.5 billion in tax revenue, $3.5 billion higher than estimated in Budget 2022. This included:
- $8.2 billion in corporate income tax, $4.1 billion more than estimated in Budget 2022.
- $13.9 billion in personal income tax, $543 million more than estimated in Budget 2022.
At the time the Budget 2022 forecast was developed, the global economy was experiencing significant uncertainty related to COVID-19, global growth and energy demand. Budget 2022 was based on a West Texas Intermediate (WTI) forecast of US$70 per barrel in 2022-23.
Oil prices surged last year due to many global factors. WTI reached US$120 per barrel in June 2022 and averaged US$89.69 for the 2022-23 fiscal year, a large reason for the increase in resource and corporate income tax revenue.
Expense
Expense in 2022-23 was $64.5 billion, $2.4 billion more than estimated in Budget 2022, including:
- $25.2 billion in health expense to expand capacity and for higher costs in response to Albertans’ evolving health-care needs.
- Investments of $8.9 billion and $6.1 billion in K-12 and post-secondary education, respectively, providing quality learning for Alberta’s youth and building on the province’s world-class post-secondary environment.
Among other factors, the overall increase from Budget 2022 was due to:
- A $2.2-billion increase in operating expense, mainly for health, increased compensation costs from settled agreements, electricity rebates and other affordability measures, and the cost of selling oil.
- A $300-million increase in COVID-19 recovery costs.
- A $167-million increase in debt servicing costs, mainly due to the impact of higher interest rates.
Affordability
In response to rising living costs, Alberta’s government introduced a series of affordability measures in 2022-23 that helped slow inflation and make life more affordable for Albertans. In 2022-23, the government provided $2.9 billion in affordability supports, including:
- $1.1 billion for the fuel tax relief program, funded through a reduction in revenue.
- $304 million for indexation of the personal income tax system to inflation retroactive to the 2022 tax year, funded through a reduction in revenue.
- $644 million for electricity rebates.
- $441 million for affordability payments to eligible seniors, families with children and vulnerable Albertans on core benefits programs.
- $51 million for indexation of benefit payments to inflation (Alberta Seniors Benefit, Assured Income for the Severely Handicapped, Income Support, Persons with Developmental Disabilities).
To further reduce the cost burden on Albertans, Alberta’s government recently extended the pause on the collection of the provincial fuel tax, saving Albertans 13 cents on every litre of gasoline and diesel until the end of 2023.
Alberta
Official statement from Premier Danielle Smith and Energy Minister Brian Jean on the start-up of the Trans Mountain Pipeline
Alberta
Protecting the right to vote for Canadian citizens: Minister McIver
Minister of Municipal Affairs Ric McIver issued the following statement in response to Calgary City Council’s vote to extend the right to vote to permanent residents:
“Yesterday, Calgary city council passed a motion advocating for permanent residents to be extended the right to vote in civic elections. Alberta’s government has been clear since the beginning: only Canadian citizens are able to vote in civic elections. That will not be changing.
“The Canadian Charter of Rights and Freedoms affirms the right of every Canadian citizen to vote and to run as a candidate. This right extends to voters in municipal, provincial and federal elections.
“Protecting our democracy is of the utmost importance. Our provincial election legislation, like the Local Authorities Elections Act, has also been clear since its inception that voting is a right of Canadian citizens.
“Alberta’s government is also ensuring that voting is accessible for more Albertans. The Municipal Affairs Statutes Amendment Act proposes to enable special ballot access for any voter who requests it, without having to provide any specific reason such as physical disability, absence from the municipality or working for the municipal election. The ministries of Seniors, Community and Social Services and Service Alberta and Red Tape Reduction are also making it easier for individuals to obtain the identification Albertans need for a variety of services, including the ability to cast a ballot.
“Our government will continue to protect the integrity of our elections and make sure voting is accessible for all Albertans who are Canadian citizens.”
-
Alberta1 day ago
Official statement from Premier Danielle Smith and Energy Minister Brian Jean on the start-up of the Trans Mountain Pipeline
-
Canadian Energy Centre2 days ago
North America LNG project cost competitiveness
-
conflict2 days ago
Columbia on Lockdown After pro-Palestinian Protesters Take Over Building, Hold Janitors Hostage
-
Economy1 day ago
Today’s federal government—massive spending growth and epic betting
-
Economy1 day ago
Young Canadians are putting off having a family due to rising cost of living, survey finds
-
COVID-191 day ago
Canada’s COVID vaccine injury program has paid out just 6% of claims so far
-
International1 day ago
NYPD storms protest-occupied Columbia building, several arrested
-
International20 hours ago
U.S. birth rate hit record low last year, signaling surge in childlessness