Alberta’s surplus is forecast to be $12.6-billion higher than anticipated.
Government officials said last week bitumen royalties, other resource revenue and corporate income taxes increased the province’s forecast surplus to $13.2 billion.
“Alberta’s commitment to fiscal discipline and our unrelenting focus on economic growth has helped bring about an extraordinary turnaround in our financial situation,” Premier Jason Kenney said.
The government will repay $13.4-billion in debt that comes due this fiscal year, and will allocate $5.2-billion to debt coming due in 2023-’24.
The government will retain the Heritage Fund’s remaining investment income of $1.2-billion and allocate $1.7-billion, for a total investment of $2.9-billion.
“We promised Albertans we would get our fiscal house in order and that’s exactly what we’ve done,” Kenney said. “Now, we’re paying down debt so future generations won’t have to, saving more for a rainy day, and putting more money in Albertans’ pockets.”
The province will index personal income taxes to inflation, retroactive to the 2022 tax year.
The basic personal tax amount is rising to $19,814 and will rise again in 2023.
“For too long, governments in Alberta refused to exercise fiscal discipline during boom times,” Finance Minister Jason Nixon said. “Those days are over. Alberta’s government is making the prudent decision to save and invest surplus revenues so future generations can benefit from the prosperity of today.
The revenue forecast for 2022-’23 is $75.9-billion, $13.3-billion higher than reported in the budget.
Non-renewable resource revenue is forecast at $28.4-billion in 2022-’23, up $14.6-billion from budget’s $13.8-billion forecast.
Corporate income taxes are up $2-billion from the budget, with a new forecast of $6.1-billion for 2022-’23.
Total expense is forecast at $62.7-billion, up slightly from the $62.1-billion estimated at budget.
Taxpayer-supported debt is forecast at $79.8-billion on March 31, 2023, which is $10.4-billion lower than estimated in the budget.
