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Finances strong, province begins to address flood costs

Alberta’s first quarter update shows higher revenue and a strong economy, however continued fiscal prudence is crucial as energy prices remain volatile and rebuilding begins. 

“While we are seeing an improvement in energy prices, we know all too well how unstable they can be and the impact that can have on Alberta’s bottom line. It’s vital that government continues to make tough choices, live within our means and seek out efficiencies through results-based budgeting.  These actions will maintain our financial strength and position as Canada’s economic engine, while allowing us to continue with our Building Alberta Plan.” 

- Doug Horner, President of Treasury Board and Minister of Finance

Operational revenue in the first three months of the fiscal year was $9.9 billion, $211 million higher than expected. This was due primarily to an increase in oil prices and investment income. Operational expense was $9.2 billion, a decrease of $113 million, due mainly to the timing of health grants. Overall, there was a $715 million operational surplus in the first quarter.

Capital plan results were on track with the budget estimate, with capital plan spending at $1.4 billion. Direct borrowing for the capital plan was $304 million lower than expected, coming in at $494 million.

By the end of the 2013/14 fiscal year, operational results are expected to be closer to balanced, ranging from a surplus of $250 million to a deficit of $500 million.

To date, $704 million has been allocated to support Albertans, small-business owners and communities with flood recovery. Alberta’s fiscal responsibility and strong financial position allowed the province to immediately address the needs of those impacted by the flood, while continuing to invest in programs and services, as well as capital projects outlined in Budget 2013.

“Right now, our best estimates show the June flooding disaster to be about a $5-billion event. While costs will be shared—with funding from the Alberta government, the federal government, municipalities and insurance claims—the disaster will impact our finances. We’re certainly in for some challenges. But with a solid commitment from the federal government for their contribution to support disaster recovery, and thanks to our strong economy and higher revenues in first quarter, we are in a good position to help get lives back to normal.”

- Doug Horner, President of Treasury Board and Minister of Finance

Our government was elected to keep building Alberta, to live within its means and to fight to open new markets for Alberta’s resources. We will continue to deliver the responsible change Albertans voted for.

2013-14 First Quarter Actuals for the three months ended June 30 ($ millions)                                                               

 

Budget
2013-14

Q1
Budget

Q1
Actual

Operational Revenue

$37,675

$9,716

$9,926

  • Non-renewable resource revenue

$7,250

$1,704

$1,767

Operational Expense

$38,126

$9,324

$9,211

Operational Surplus / (Deficit)

($451)

$392

$715

Capital Plan

$5,209

$1,411

$1,404

Contingency Account (as of June 30, 2013)

$3 billion

Related information

Alberta 2013 flood recovery update

Budget 2013

Twitter: @AB_TB_Finance

Multimedia

Audio: 1st Quarter Update with Minister Horner 

Note: Video will be posted online as soon as it is available.


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