UPDATED: Alberta government fall economic update shows $5.5 billion surplus

The Alberta government said it is continuing to manage its finances right and focusing on the future. “Alberta continues to stand out as a leader when it comes to fiscal stability and economic resilience in the midst of so much global uncertainty,” said Alberta Treasury Board President and Finance Minister Nate Horner in a Thursday press release. “Our second-quarter fiscal update is another positive report, showing strength in Alberta’s finances and economy and positioning us for future growth and prosperity.”In 2023-2024, the Alberta government said it continues to lead Canada in economic growth and is forecasting a $5.5 billion surplus — an increase of $3.2 billion from Budget 2023. It added its fiscal outlook continued to improve in the second quarter of 2023-2024, which was boosted by strong bitumen royalties and higher income tax revenues. However, volatile oil prices continued inflation challenges and uncertainty due to slowing global growth could affect Alberta’s finances going forward. Debt servicing costs will be higher than previous years due to higher interest rates, reinforcing the importance of its commitment to balance the budget. The government’s new fiscal framework requires it to use at least half of available surplus cash to pay down debt, freeing up money to support the needs of Albertans for generations. It said it continues to reduce its debt burden and will pay down a forecasted $3.2 billion in debt this year. Since it hopes to support Albertans’ needs and its economic growth and maintain its commitment to responsible spending within the fiscal framework, it acknowledged it has turned its focus to developing next year’s budget. Budget 2024 consultations are open and Albertans are encouraged to share their feedback to set its financial priorities. The Alberta government went on to say revenue for 2023-2024 is forecast at $74.3 billion — a $3.7 billion increase from Budget 2023. The increase is due to upticks across different revenue streams. Personal and corporate tax revenue is forecast at $21.8 billion — $1.8 billion higher than at budget. Bitumen royalties are forecast at $14.4 billion — an increase of $1.8 billion at budget. Overall resource revenue is forecast at $19.7 billion — $1.3 billion higher than the budget forecast. In 2024, the Alberta government will continue to offer fuel tax relief when oil prices are high, even as the province transitions to the original program based on average quarterly amounts. Albertans will save some or all of the provincial fuel tax on gas and diesel when oil prices are $80 per barrel or higher during each quarter’s review period. While oil prices have been below $80 in recent weeks, Albertans will continue to save at least four cents per litre in the first three months of 2024 as the tax is phased back in. Its fuel tax relief efforts, which include the pause to the end of 2023 and additional savings over the first three months of 2024, are forecast to reduce other tax revenue by $524 million in 2023-2024. The Alberta government continued by saying expenses for 2023-2024 are forecast at $68.8 billion — a $481 million increase from Budget 2023. It added capital gains are up from Budget 2023, but they are down from the fourth quarter because of funding schedules for Calgary and Edmonton LRT projects. Debt servicing costs are forecast to increase $309 million from the budget — a reflection of ongoing high interest rates and inflation. While total expenses have increased by $1.9 billion, $500 million is offset by revenue and $1.4 billion is absorbed by the $1.5 billion contingency fund. Disaster and emergency costs are forecast to be $1.2 billion for the current fiscal year. This includes $750 million for fighting wildfires, $165 million for AgriRecovery to support livestock producers affected by dry conditions, $253 million to provide financial assistance to communities for uninsurable damage from spring wildfires and summer flooding and $61 million for evacuation and other support. The operating expense forecast has increased by $319 million. This includes $301 million for Alberta Health, $48 million for Advanced Education, $48 million for Energy and Minerals, $33 million for Mental Health and Addicitons, $30 million for Education and $14 million for Indigenous Relations. Despite interest rate increases, high prices and slower global economic growth, the Alberta government said its economy is forecast to keep expanding. It admitted the pace of growth will be slower compared with the last two years when the province was recovering from the COVID-19 pandemic. Horner followed up by saying the Alberta government is trying to shift off of resource royalties. “We’re seeing increases in the corporate income tax and personal tax,” he said. “We’re blessed to have these resources.” In the second quarter of 2024, he said Lionfield and Trans Mountain will be putting more money into the Alberta government. These projects will expand takeaway capacity and lower differentials.The Alberta government said in February it was rolling in dough, forecasting a $2.4 billion surplus for Budget 2023. READ MORE: Budget 2023: Alberta forecasts a surplus of $2.4 billion“Fiscal responsibility matters,” said former Alberta treasury board president and finance minister Travis Toews. “It’s been key to achieving our strong fiscal standing and will be essential for sustainable program delivery in the future.” .This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. 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