The Alberta government has released its 2024–25 year-end fiscal update, revealing an $8.3 billion surplus — far exceeding the $355 million projected in Budget 2024.
According to a June 27 release, the increase was largely due to higher personal income tax collected in the province and increased non-renewable resource revenue.
Budget 2024 was based on a West Texas Intermediate (WTI) price of $74 per barrel, but the actual market price averaged slightly higher at $74.32 per barrel, contributing to stronger revenues.
"Alberta’s financial strength isn’t just luck, it’s the result of disciplined decisions and a clear commitment to responsible government," said Premier Danielle Smith, in the release. "While others reach for higher taxes and more debt, we’re focused on stability, savings and respect for the people who keep Alberta’s economy moving. That means more security for families, more opportunity for young people, and stronger communities across our province. In uncertain times, Alberta showing this kind of economic leadership is important.”
Smith's comments were echoed by Finance Minister and Drumheller-Stettler MLA Nate Horner.
"This surplus shows Alberta’s strength," said Horner. "The road ahead may be rough, but Alberta is built to last. We’re paying down debt, saving for the future and backing the services Albertans count on. This surplus lets us save smart, spend wisely and stand strong for the long haul.”
In total, revenue for the 2024-25 fiscal year was $82.5 billion, up $8.9 billion from what was estimated. $22 billion was non-renewable resource revenue. Additionally, the province collected $30.4 billion in tax revenue, which was also around $1.7 billion more than anticipated.
While revenues were higher than expected, so were expenses. Expenses in the budget were projected at $74.1 billion, $967 million higher than presented in Budget 2024. These increases are attributed to the increased costs related to Alberta's health system refocusing, an increase in education, and nearly $2 billion in disaster relief after wildfires in 2024.
The province’s total debt sits at approximately $85.2 billion, with total debt-servicing costs of $3.2 billion. Debt servicing costs were lower than expected, thanks to reduced borrowing requirements and favourable interest rates.
Following the province's legislated fiscal framework, around half of the $5.1 billion cash surplus will be used to pay down maturing debt or be directed towards the Alberta Heritage Savings Trust Fund. The remaining half may be directed toward additional trust fund contributions, further debt repayment, or one-time spending initiatives.
As of March 31, the Alberta Heritage Savings Trust Fund has increased to $27.2 billion, a $4.2 billion increase from the previous year, and its highest value ever.
The 2024-25 surplus is the fourth surplus for the province in as many years.
"The surplus is good news," said Horner.
Horner cautioned that, going forward, the province is predicting three years of deficits given unstable geopolitical conditions and the uncertainty surrounding trade with the United States.
Alberta's opposition NDP was less than enthused with the government's fiscal update.
“Despite a decent surplus and favourable tailwinds, the UCP government has failed to attract meaningful capital investment or keep pace with Alberta’s growing population and rising inflation," said Court Ellingson, the Alberta New Democrat Shadow Minister for Finance in an email release following Horner's news conference. " Health care, education, and public safety are falling short of what Albertans need and deserve ... At a time when the global economy is becoming more uncertain, the UCP government still has no credible plan to improve affordability or drive sustainable growth."
-This story was updated to include the response from the Alberta NDP.
