Overview
Alberta is facing headwinds from economic uncertainty and revenue volatility due to international market instability, fluctuating oil prices and a rapidly growing population adding pressure on our public service. Budget 2025 delivers on the government’s commitment to making prudent spending decisions and sustainably delivering programs to Albertans.
What the budget means for you
Budget 2025 works to continue to build the province and support Albertans despite the current challenging situation.
Budget 2025 fulfills the government’s promise to lower personal income taxes by creating a new tax bracket of 8% on the first $60,000 of income.
It continues its important work to refocus the health care system by establishing 4 integrated health agencies to improve outcomes for patients.
And it works to protect Alberta’s advantage by securing the border between Alberta and the US, working to access new markets for energy and mineral resources, and cultivating markets to support agriculture products and value-added processors.
Economic outlook
Stormy skies are on the horizon for Alberta’s economy after ending last year on a solid footing. Last year ended with high employment gains, record oil production and increased investment in non-residential building. However, a significant shift in U.S. trade policy towards stronger protectionist measures puts a damper on the 2025-26 outlook.
Revenue
Alberta’s economic position as a small, open economy with a large natural resource base makes it sensitive to global economic conditions beyond the province. Alberta’s government introduced a renewed fiscal framework in 2023 to help manage volatile and unpredictable government revenue.
Expense
The Government of Alberta is committed to fiscal responsibility, efficient delivery of public services, and focusing on Albertans’ priorities, while transforming our health care system, strengthening education and support to vulnerable Albertans, and keeping communities safe.
Capital Plan
With a total of $26.1 billion allocated over the next 3 years – $1.1 billion more than in Budget 2024 – the 2025 Capital Plan addresses current growth pressures, supports future economic growth and creates additional opportunities for private sector participation.
Watch the news conference
Finance Minister Nate Horner provides details on Budget 2025.
News
- Mar 12, 2025
Premier Danielle Smith and Minister of Environment and Protected Areas Rebecca Schulz issued the following statement on the PBO’s report on the proposed federal oil and gas emissions cap:
- Mar 12, 2025
Budget 2025, if passed, meets the challenge of rising school enrolment with more than $1.1 billion over three years to hire more teachers and support staff.
- Mar 7, 2025
Budget 2025, if passed, will fund nine new school projects for families in smaller urban cities and rural communities, outside of Calgary and Edmonton metro regions.
- Mar 7, 2025
Budget 2025 would invest more than $18 million to defend Alberta against dangerous aquatic invasive species.
- Mar 6, 2025Budget 2025: Increasing hospital capacity | Budget de 2025 : Augmenter la capacité d’hospitalisation
Alberta’s government is investing $10 million over two years to increase hospital capacity across the province as part of the Budget 2025 Capital Plan.
- Mar 6, 2025
Through Budget 2025, Alberta’s government would invest $5 million to help put food on tables across the province.
- Mar 6, 2025
Budget 2025 strengthens stable and reliable funding for municipalities by covering tax exemptions for provincially owned property.
- Mar 4, 2025
Alberta’s government is increasing emergency route capacity while opening new economic opportunities in the north.
- Mar 4, 2025
Budget 2025 builds on the province’s commitment to prepare for, mitigate and respond to the impacts of catastrophic wildfires.
- Mar 3, 2025
Deputy Minister of Jobs, Economy and Trade Christopher McPherson has issued the following statement on an independent third-party investigation into procurement and contracting processes used by the Government of Alberta and Alberta Health Services (AHS):