New tax bracket among features of Alberta’s 2024 Budget

Budget 2024: A responsible plan for a growing province

Budget 2024 is a responsible plan to strengthen health care and education, build safe communities and manage resources wisely to support a growing Alberta.

With a steady focus on fiscal responsibility and wise spending, Alberta’s government will continue to meet the needs of Albertans today and tomorrow. Budget 2024 presents three more years of balanced budgets, beginning with a forecast surplus of $367 million in 2024-25. Budget 2024 strengthens the vital services Albertans rely on and ensures those services remain sustainable over the long run.

“Alberta is growing. Budget 2024 is a plan that manages the pressures faced by a growing province today while securing the future for generations who follow. I’m proud of the choices we made in this budget that support Albertans’ top priorities and prepare our province to meet the challenges that lie ahead. Budget 2024 invests today and saves for tomorrow so we can continue to be the nation’s economic engine.”

Nate Horner, President of Treasury Board and Minister of Finance

Budget 2024 is a responsible plan that puts Albertans and Alberta families first by investing in their health, education, safety, and economic growth and success. Priority investments include:

Health and mental health supports: $26.2 billion in operating dollars, a 4.4 per cent increase over the forecast for 2023-24.
Education supports: $9.3 billion in operating expenses, a 4.4 per cent increase from last year, to support record enrolment growth, hire hundreds more education staff including teachers and educational assistants, and support students with specialized needs.
Social supports: $2.9 billion in 2024-25 to Albertans through the Assured Income for the Severely Handicapped program, the Alberta Seniors Benefit and other social support programs, plus $355 million for Alberta Child and Family Benefit payments to help low-income families, indexing payments to inflation and providing for more eligible clients.
Workforce supports: An increase of $102 million over three years to add 3,200 apprenticeship classroom seats in high-demand areas and support curriculum updates to the apprenticeship program, as well as $62.4 million over three years to expand physician education, including through rural health training centres.
Public safety supports: $1.2 billion in 2024-25 operating expense for Public Safety and Emergency Services to support police and mental health crisis teams, deploy street-level police officers to tackle crime in Calgary and Edmonton, and provide $74 million to the Alberta Emergency Management Agency.
Wildfire supports: $151 million operating expense over the next three years for enhancements to the Wildfire Management Program and $55 million in capital investment for new firefighting equipment and facilities.
- The fiscal framework provides the flexibility the government needs to respond quickly to disasters and emergencies as they arise, including a $2-billion contingency.
Water management and drought preparedness supports: $1.3 billion in capital funding over the next three years, including $251 million to better prepare the province for floods and droughts; $272 million for irrigation projects; and $539 million to support municipal water supply and wastewater infrastructure.
- Budget 2024 also provides additional operating support of $19 million over three years for the Strategy to Increase Water Availability and $9 million for water management initiatives.
Capital supports: In total, $25 billion over three years in capital funding to build schools, hospitals, roads and other infrastructure, supporting 24,000 direct jobs and 13,000 indirect jobs across the province.

Alberta is well-positioned to remain the economic engine of Canada, with real gross domestic product forecast to grow 2.9 per cent in 2024, but the province continues to face challenges. While Alberta’s growing population is supporting economic activity and helping to ease labour shortages, it is also increasing demand for housing, health care, education and other public services. Ongoing geopolitical turmoil, uncertainty from federal government policies and high consumer prices risk dampening growth. Budget 2024 prepares Alberta to face those headwinds, with its responsible plan that invests in Albertans today and builds prosperity for tomorrow.

The fiscal framework introduced in spring 2023 requires the government to use at least half of any available surplus cash to pay down debt, freeing up more money to support Albertans. Taxpayer-supported debt will be reduced by a forecast $3.2 billion in the 2023-24 fiscal year. With the government’s commitment to paying down debt, the total taxpayer-supported debt will be $78.4 billion at the end of 2024-25.

High interest rates and the need to refinance maturing debt are driving up debt-servicing costs (the interest payments and fees on the debt) paid by taxpayers. As a result, debt-servicing costs are growing by $229 million in 2024-25 to $3.4 billion. While high interest rates on refinanced maturing debt are driving up those costs in the short term, the government’s strategic debt repayment plan will save Albertans millions in the long term.

The province is retaining more than $1 billion in investment earnings from 2023-24 in the Alberta Heritage Savings Trust Fund. Alberta’s government will also deposit another $2 billion from the Alberta Fund, increasing the value of the Heritage Savings Trust Fund to a forecast $25 billion. This is a significant investment in the future of Albertans and the province’s main long-term savings fund

Revenue

In 2024-25, total revenue is estimated to be $73.5 billion, which is $2.1 billion lower than the third-quarter forecast for 2023-24.
Revenue from personal income taxes is estimated to increase to $15.6 billion in 2024-25, up $365 million from the third-quarter forecast, and grow in the following two years as more people continue to move to Alberta.
Corporate income tax revenue is estimated at $7 billion in 2024-25, down $176 million from the third-quarter forecast for 2023-24, but rising over the next two years.
Non-renewable resource revenue is estimated to drop to $17.3 billion in 2024-25, from $19.4 billion forecast for 2023-24, and is forecast to pick up over the medium term.

Expense

Total expense in 2024-25 is $73.2 billion, a 3.9 per cent increase from the forecast for 2023-24.
Total expense is expected to be $74.6 billion in 2025-26 and $76.2 billion in 2026-27.
Total operating expense in 2024-25 is $60.1 billion, a 3.9 per cent increase from the 2023-24 forecast.
A contingency of $2 billion will help the province respond to disasters and emergencies and other in-year expense pressures, a $500-million increase from 2023-24.

Surplus

A surplus of $367 million is forecast for 2024-25.
Surpluses of $1.4 billion and $2.6 billion are forecast for 2024-25 and 2025-26, respectively.

Economic outlook

In 2024, real gross domestic product is expected to grow by 2.9 per cent, up from the 2.6 per cent forecast at mid-year.
Strong population growth is expected to continue at 3.7 per cent in the 2024 calendar year, down from 4.1 per cent growth in 2023.

Energy and economic assumptions, 2024-25

West Texas Intermediate oil (USD/bbl) $74
Western Canadian Select @ Hardisty (CND/bbl) $76.80
Light-heavy differential (USD/bbl) $16
ARP natural gas (CND/GJ) $2.90
Conventional crude production (000s barrels/day) 507
Raw bitumen production (000s barrels/day) 3,429
Canadian dollar exchange rate (USD¢/CDN$) 75.90
Interest rate (10-year Canada bonds, per cent) 3.70

Related information

Budget 2024

Former senior financial advisor charged with embezzling millions from Red Deer area residents

Published on April 26, 2024

Todayville

News release from Alberta RCMP

Former senior financial advisor charged for misappropriating nearly $5 million from clients

On April 4, 2024, the RCMP’s Provincial Financial Crime Team charged a Calgary resident for fraud-related offences after embezzling millions of dollars from his clients while serving as a senior financial advisor.

Following a thorough investigation, the accused is alleged to have fraudulently withdrawn funds from client accounts and deposited them into bank accounts he personally controlled. A total of sixteen victims were identified in the Red Deer area and suffered a combined loss of nearly $5 million.

Marc St. Pierre, 52, a resident of Calgary, was arrested and charged with:

Fraud over $5,000 contrary to section 380(1)(a) of the Criminal Code; and,
Theft over $5,000 contrary to section 344(a) of the Criminal Code.

St. Pierre is scheduled to appear in Red Deer Provincial Court on May 14, 2024.

“The ability for financial advisors to leverage their position to conduct frauds and investment scams represents a significant risk to the integrity of Alberta’s financial institutions. The investigation serves as an important reminder for all banking clients to regularly check their accounts for any suspicious activity and to report it to their bank’s fraud prevention team.”

Sgt. John Lamming, Provincial Financial Crime Team

The Provincial Financial Crime Team is a specialized unit that conducts investigations relating to multi-jurisdictional serious fraud, investments scams and corruption.

Alberta

Political parties will be part of municipal elections in Edmonton and Calgary pilot projects

Published on April 25, 2024

Government of Alberta

Strengthening Alberta’s local elections

Alberta’s government is introducing legislation to ensure Albertans can rely on transparent, free and fair elections, and municipally-elected officials have clearer accountability measures.

In a democratic society, Albertans expect their local elections to be free and fair, and their elected officials to be held to account by clear rules that govern their local councils. The Municipal Affairs Statutes Amendment Act proposes amendments to the Local Authorities Election Act (LAEA) and the Municipal Government Act (MGA) to add greater transparency to local election processes and ensure local councils and elected officials continue to remain accountable to the citizens who elected them.

“Our government is committed to strengthening Albertans’ trust in their local governments and the democratic process that elects local leaders. The changes we are making increase transparency for Alberta voters and provide surety their votes will be counted accurately. We know how important local democracy is to Albertans, and we will work with local authorities to protect and enhance the integrity of local elections.”

Ric McIver, Minister of Municipal Affairs

Local Authorities Election Act

Albertans expect free and fair elections and that’s why it’s important we strengthen the rules that govern local elections. To strengthen public trust in local elections, Alberta’s government will eliminate the use of electronic tabulators and other automated voting machines. All Albertans should be able to trust the methods and results of local elections; requiring all ballots to be counted by hand, clarifying rules and streamlining processes for scrutineers will provide voters greater assurance in the integrity of the results.

All eligible Albertans should be able to vote in local elections without impediment. Alberta’s government will limit the barriers for eligible voters to cast a ballot by expanding the use of special ballots. Currently, special ballots can only be requested for very specific reasons, including physical disability, absence from the municipality, or for municipal election workers. By expanding the use of special ballots, the government is encouraging more voter participation.

Amendments in the Municipal Affairs Statutes Amendment Act would increase transparency in local elections by enabling political parties at the local level. Political parties would be enabled in a pilot project for Edmonton and Calgary. The act will not require candidates to join a political party in order to run for a local or municipal office, but will create the opportunity to do so.

In addition, proposed changes to the Local Authorities Election Act would allow municipalities the option to require criminal record checks for local candidates, thus increasing transparency and trust in candidates who may go on to become elected officials.

Municipal Government Act

The role of an elected official is one with tremendous responsibility and expectations. Changes proposed to the Municipal Government Act (MGA) will strengthen the accountability of locally elected officials and councils. These include requiring mandatory orientation training for councillors, allowing elected officials to recuse themselves for real or perceived conflicts of interest without third-party review and requiring a councillor’s seat to become vacant upon disqualification.

If passed, the Municipal Affairs Statutes Amendment Act will also unlock new tools to build affordable and attainable housing across Alberta. Proposed amendments under the MGA would also create more options for municipalities to accelerate housing developments in their communities. Options include:

Exempting non-profit, subsidized affordable housing from both municipal and education property taxes;
Requiring municipalities to offer digital participation for public hearings about planning and development, and restricting municipalities from holding extra public hearings that are not already required by legislation; and
Enabling municipalities to offer multi-year residential property tax exemptions.

Municipal Affairs will engage municipalities and other partners over the coming months to hear perspectives and gather feedback to help develop regulations.

Quick facts

The LAEA establishes the framework for the conduct of elections in Alberta municipalities, school divisions, irrigation districts and Metis Settlements.
The MGA establishes the rules governing the conduct of local elected officials once on council, as well as the overall administration and operation of municipal authorities in Alberta, including any policy those authorities may wish to implement.