Budget highlights

Overview

Budget 2025 is meeting the challenges facing Alberta with responsible decisions to fund the priorities of today, meeting the challenges of uncertainty in trade and security and a rapidly growing population.

Budget 2025 delivers the promised tax cut that will save Albertans hundreds of dollars starting this year to help with the rising cost of living. The new 8% personal income tax bracket for income up to $60,000 is starting 2 years ahead of schedule. It will save Albertans up to $750 in 2025.

To meet the needs of a population that has grown rapidly in the last few years, the budget makes another record investment in health care and moves forward with its commitment to build schools and classroom spaces faster. The budget continues to support vulnerable Albertans, keep communities and provincial borders safe, and diversify the economy.

Resources

Budget 2025 Fiscal Plan and highlights

Strengthening health care

Budget 2025 supports the government’s plan to build a refocused health care system that will provide Albertans with the necessary care when and where they need it. Alberta’s new health model will strengthen services, empower local decision-making, enhance support to frontline workers and improve health outcomes.
The budget includes $28 billion in operating expense, an increase of $1.4 billion or 5.4%, across the refocused health care system. This includes $22.1 billion to improve access to quality health services close to home, prioritize patients, build capacity at hospitals and rural facilities, expand surgeries, and compensate and retain health professionals.

$644 million for primary care to attach every Albertan with a primary care team and improve access to family doctors and frontline health-care professionals. This includes $20 million to support the work of nurse practitioners.
$4.6 billion for acute care, to support increases to services to meet volume and costs, and to improve the acute care system in hospitals, urgent care centres, chartered surgical and other health facilities.
$45 million for Indigenous health initiatives over 3 years, to help address health inequities and promote health, wellness and increased choice.
$7 billion for physician compensation and development, including $15 million for recruitment and retention.
$1.9 billion for drugs and supplemental health benefits including the seniors drug program, which is the largest component that supports more than 700,000 seniors.
$1.7 billion to support addiction and mental health services to increase access to the supports Albertans require to pursue recovery and personal wellness, and for implementation of the compassionate intervention framework, Recovery Alberta services, new recovery communities, and to expand mental health classrooms for clinical support to students with complex mental health needs.
$3.8 billion for Assisted Living Alberta, the new provincial continuing care health agency, which will provide wraparound medical and non-medical supports, home care, community care and social services.

A total of $3.6 billion in capital dollars over 3 years will support new urgent care and primary care centres, build capacity at existing hospitals, expand surgical capacity, enhance rural hospitals and health facilities, and replace aging equipment to support improved health outcomes.

$769 million to support transformational changes in continuing care, increase the number of assisted living spaces and modernize existing assisted living homes in Alberta.
$265 million for the Alberta Surgical Initiative capital program to expand, renovate and build more operating rooms to boost surgical capacity.
$207 million for the development of specialized compassionate intervention facilities to provide care for patients.
$168 million in new funding to enhance diagnostic capabilities across the province.
$148 million to continue building Recovery Communities. A total of 11 recovery communities, including 5 in Indigenous communities, have been approved, with the Calgary Recovery Community scheduled to open in 2025. So far, 200 new addiction treatment beds are operational in Red Deer, Lethbridge and Gunn.
$60 million over 3 years to purchase new EMS vehicles and ambulances, upgrade the existing fleet and buy more equipment.

Investing in K-12 education

Albertans deserve world-class education for their families now and in the future. Budget 2025 provides an operating expense budget of $9.9 billion in 2025-26, a 4.5% increase from the 2024-25 third quarter forecast.

$54 million in 2025-26, along with $348 million more over the following 2 years will support additional enrolment growth.
An increase of $55 million in 2025-26, and another $94 million in each of the following 2 years, to adjust the funding formula for school authorities to provide increased sustainable funding for growth within the funding model.
Almost $1.1 billion in total over the next 3 years to address growth and hire more than 4,000 new teachers and classroom support staff.
More than $1.6 billion in 2025-26 will support students with specialized learning needs or groups of students who need additional help.
An investment of $55 million in 2025-26, a 20% increase from last year, to allow school authorities to add staff and supports to complex classrooms so students receive the focus and attention they need.
$389 million over 3 years will provide increases to funding rates to cover the rising costs of maintaining educational facilities, unavoidable expenses like insurance and utilities, and providing programs and services to students.
$2.6 billion over 3 years for educational (K-12) infrastructure, an increase of $505 million or 23.9% from Budget 2024. This funding will support the construction of more than 200,000 new and modernized student spaces over the next 7 years (almost 90,000 within the next 4 years).

Meeting the challenge

As Alberta continues work to address increasing domestic and international economic pressures, Budget 2025 works to strengthen Alberta’s economy by focusing on initiatives that help create the right conditions to support a strong workforce. The budget helps build communities, secure Alberta’s southern border, and boost investments in the province’s economic future.

Supporting a strong workforce

$26.1 billion over 3 years from the Capital Plan, to support about 26,500 direct and 12,000 indirect jobs each year through 2027-28.
$135 million for skilled trade programs such as apprenticeship and adult learning initiatives to help Albertans gain the skills and training need for successful careers and support access to job opportunities.
$2 billion in 2025-26 to support and expand early learning and childcare system so parents and caregivers can participate in training, education or work opportunities.

Investing in post-secondary education

Budget 2025 invests a total of $7.4 billion in post-secondary education, with an operating budget of $6.6 billion in 2025-26.

$78 million per year over the next 3 years to create more seats in apprenticeship classes across the province to build skilled trades and apprenticeship education that will respond to the needs of industry and connect Albertans with jobs.
$113 million to support greater demand for scholarships and the Alberta Student Grant, with $60 million funded from the Alberta Heritage Scholarship Fund.
$4 million to the First Nations Colleges Grant which is distributed equally across 5 colleges in rural and remote Indigenous communities.

Building communities

$17.2 million to increase grants made to municipalities in lieu of property taxes on government-owned property to 75%, up from the current 50%. By next year, the province will cover 100% of the amount that would be paid if the property was taxable.
$820 million this year and $2.5 billion over 3 years in Local Government Fiscal Framework capital funding to help fund local infrastructure priorities.

Securing our borders

$29 million in 2025-26 for a new Interdiction Patrol Team within Alberta Sheriffs to tackle drug smuggling, gun trafficking, apprehension of persons attempting to cross the border illegally, and other illegal activities along Alberta’s international land border. Another $25 million will purchase equipment and develop border patrol facilities.
$1.3 billion for operating expense for Public Safety and Emergency Services, an increase of 3.7% from 2024-25, to support Alberta Sheriffs, Correctional Services and emergency management in the work to keep Alberta communities safe and secure on the southern border.

Supporting trade and diversification

Attracting more investment through low corporate income taxes. At 8%, Alberta’s corporate income tax rate is 30% lower than the next lowest province.
Providing greater incentive for small and medium-sized firms that increase their spending on research and development, with Alberta’s Innovation Employment Grant.
Promoting Alberta as a reliable partner in supporting North America and global energy security to investors. The province will optimize new and existing infrastructure to access new markets for Alberta’s energy and mineral resources.
Supporting Alberta’s agriculture producers and value-added processors, addressing barriers to trade by cultivating export markets, and working to increase market access for Alberta products.
Reinforcing Alberta as a critical contributor to North American energy security by continuing to advocate for our remarkable energy sector across Canada, the U.S., Germany, Japan and the rest of the world.

Investing in business and industry

Support to attract investment in Alberta’s energy and mineral resource sector to accelerate opportunities in emerging resources.
$45 million over 3 years for the Investment and Growth Fund to attract investment into Alberta’s economy.
$1.8 million in Western Crop Innovations for industry-leading crop research.
$780,000 to support small- and medium-sized meat processors.
$3.1 million for the University of Calgary’s Faculty of Veterinary Medicine to expand toward a full-service veterinary diagnostic laboratory. This will give livestock producers and vets access to quicker, more affordable livestock diagnostics closer to home.

Meeting challenges faced by families and communities

$1.6 billion, or a 6% increase from last year, for Children and Family Services to strengthen the programs vulnerable children and families rely on.
$6.2 billion, or an 8.8% increase from 2024-25, to support core social programs, including a short-term bump to support more people affected by potential U.S. tariffs and rising grants for housing programs.
Budget 2025’s Capital Plan includes $26.1 billion over 3 years, or $1.1 billion more than Budget 2024, to meet the challenge of growth and build and enhance schools, hospitals, roads and bridges in the province. The plan is projected to support an average of 26,500 direct and 12,000 indirect jobs annually through 2027-28.
The province is also continuing to focus on building the Heritage Fund to $250 billion by 2050. An independent board of directors and a new Heritage Fund Opportunities Corporation will unlock access to new opportunities and partnerships with global sovereign wealth funds.