Alberta government expecting a boost in its 2024-25 surplus largely due to oil prices
For the fiscal year 2024-25, the government plans to spend $73.3 billion while expecting to generate $76.2 billion in revenue.
Alberta's first-quarter fiscal update reveals that the government anticipates a $2.9 billion surplus, though it will not have immediate surplus cash and will need to secure short-term borrowing of hundreds of millions of dollars.
Finance Minister Nate Horner explained that this surplus is an accounting figure, with the funds not readily available. As a result, the province will need to undertake $641 million in short-term borrowing.
This surplus represents an increase of $2.6 billion from the modest $367 million surplus projected in February's budget, largely due to higher-than-expected oil prices.
The price forecast for West Texas Intermediate oil is now set at US$76.50 per barrel, which is US$2.50 higher than the budget forecast.
For the fiscal year 2024-25, the government plans to spend $73.3 billion while expecting to generate $76.2 billion in revenue.
Despite the positive operating surplus, there are no immediate plans to introduce the personal tax cut promised by Premier Danielle Smith during the 2023 election.
