For the third consecutive year, Alberta has balanced its budget, ending the fiscal year with a $4.3-billion surplus. By staying true to fiscal discipline, government was able to pay down debt, save for the future in the Alberta Heritage Savings Trust Fund, and support Albertans through measures such as income tax indexation and fuel tax relief.
This responsible strategy has earned Alberta credit rating upgrades from multiple firms, including Fitch’s recent upgrade to AA. Improved credit ratings make borrowing cheaper and attract investment and growth that will ultimately create more jobs and opportunities for Albertans and Alberta businesses.
“Our government has kept its promise to balance our budget and provide Albertans the services and supports they need. We will keep building opportunity so that our children and grandchildren can continue to benefit, grow and share in the province’s prosperity.”
Alberta’s government is committed to paying down debt. The government is allocating $3.7 billion to debt repayment, with $1.7 billion repaid in 2023-24 and another $2 billion to pay debt coming due in 2024-25. This is part of the province’s strategic payment plan to reduce the overall debt burden on Albertans.
The province also grew the market value of the Heritage Fund to a record high of $22.9 billion. That includes $1.7 billion in annual investments earnings. Another $2 billion in surplus cash has also been set aside to further grow the Heritage Fund this coming year. Alberta’s government is embarking on a plan that will return the Heritage Fund to its original vision of building intergenerational wealth, with its long-term goal to grow the Fund to between $250 billion and $400 billion by 2050.
At the same time, Alberta’s government provided the highest-ever levels of funding in 2023-24 to strengthen health care and education, while also supporting Albertans through last year’s wildfires, floods, drought and the high cost of living.
To help Albertans, communities and farmers facing devastating consequences from natural disasters, the government provided $3 billion in disaster and emergency relief. This included $1.1 billion for the wildfires. Another $1.9 billion went to help farmers and producers through the severe drought.
Albertans saved $1.1 billion in 2023-24 as the government paused the fuel tax, saving Albertans a full 13 cents a litre in 2023. Albertans continue to save when they fuel up their vehicles in 2024 at a reduced rate that is in line with the fuel tax program and a drop in the price of oil. Since 2022, Albertans have saved $2.2 billion from the fuel tax program.
Indexation of personal income taxes to inflation saved Albertans another $680 million in 2023-24, while those receiving social benefits saw their payments rise.
Revenue
Revenue in 2023-24 was $74.7 billion, $4.1 billion more than estimated in Budget 2023, including:
- $19.3 billion in non-renewable resource revenue, up from the $18.4 billion estimated in Budget 2023 due to increased demand for heavier crude and the anticipated completion of the Trans Mountain Pipeline Expansion.
- $26.7 billion in tax revenue, $1.76 billion higher than estimated in Budget 2023. This included:
- $7 billion in corporate income tax, $1.1 million more than estimated in Budget 2023, as the province maintained the lowest corporate income tax rate in the country. Weaker commodity prices were offset by the carry-forward effects of record-high corporate income taxes last fiscal year.
- A record high of $15.2 billion in personal income tax, $1.1 billion more than estimated in Budget 2023, in large part because of the influx of people moving to the province, driving Alberta’s labour market, which added 85,000 jobs in 2023.
Oil prices pulled back from the highs of 2022, but remained solid, with a barrel of West Texas Intermediate averaging US$77.83 per barrel in 2023-24, only slightly below the US$79 per barrel forecast in Budget 2023.
Expense
Expense in 2023-24 was $70.4 billion, $2.2 billion more than estimated in Budget 2023 largely due to disaster and emergency supports. Expense included:
- $27.4 billion in health expense as the province began refocusing the health system to better meet the needs of patients and families, provide more surgeries, recruit more doctors and take over lab services.
- $16.4 billion to strengthen education, including:
- $9.4 billion for schools, with more money to hire more teachers to meet the diverse needs of students.
- $6.8 billion for post-secondary institutions to increase seats in high-demand areas, including apprenticeship training.
Debt-servicing costs were $3.1 billion in 2023-24, higher than the year before as the province faced higher interest rates.