Alberta’s fiscal situation improved significantly since Budget 2022 largely due to the uplift in energy prices. The surplus is now forecast at $13.2 billion, up $12.6 billion from Budget 2021..The UCP government is using the surplus to pay down the debt to reduce interest payments so more tax dollars can support front-line services and programs in the future..According to the provincial government, this will eliminate more than $13.4 billion in debt this year. The total taxpayer-supported debt forecast in 2022-23 is $79.8 billion..With $511 million added to the government coffers, the UCP said "priorities don’t change with a surplus."."Alberta's commitment to fiscal discipline and our unrelenting focus on economic growth has helped bring about an extraordinary turnaround in our financial situation," Premier Jason Kenney said.."We promised Albertans we would get our fiscal house in order and that's exactly what we've done. Now, we're paying down debt so future generations won't have to, saving more for a rainy day, and putting more money in Albertans' pockets.".The provincial government will continue to explore measures to make life more affordable for Albertans while paying down the debt. It will also reinvest in the Alberta Heritage Savings Trust Fund..The heritage fund was impacted by negative investment conditions in the first quarter, with the value of investable assets falling by 4.1% to $19.1 billion over the quarter.."Rising interest rates and global growth concerns are affecting investment markets around the world," the UCP government stated..The 2022-23 first quarter revenue forecast dramatically changed, with West Texas Intermediate oil prices now expected to be more than US$22 per barrel higher than estimated in Budget 2022, and resource revenue up $14.6 billion.."The forecast incorporates indexation of the personal income tax system effective Jan. 1, 2022. Expense increases have been limited, mainly reflecting additional affordability measures to help Albertans deal with severe inflation, re-profiling of projects and added costs of marketing higher volumes of higher priced oil," the UCP government stated.."Total revenue of $75.9 billion is forecast for the province, $13.3 billion higher than estimated in Budget 2022. Increases of $14.6 billion in resource revenue, $.8 billion in tax revenue, $.8 billion in federal transfers and other revenue, are partially offset by a $2.9 billion reduction in investment income, as financial markets have tumbled in 2022.".Total expenses of $62.7 billion is also forecast, an increase of $.6 billion from budget..According to the provincial government, about half of the increase is for the cost of selling oil, offset by higher resource revenue, and most of the remainder is for re-profiling of the site rehabilitation program, fully offset by federal transfers. The $.3 billion expense to extend electricity rebates is being funded from the budgeted contingency..The provincial government said it is working on legislation to allow the province to retain some or all of its annual investment earnings in the fund minus an amount to inflation-proof the fund when there is "increased government revenue.".Should the legislation pass, $1.2 billion in earnings from 2021-22 could be kept in the heritage fund rather than being transferred to the General Revenue Fund..The province also intends to make a transfer of $1.7 billion of the 2022-23 surplus to the heritage fund this fiscal year..The government last invested $918 million into the trust fund in 2007-08. In both 2005-06 and 2006-07, Alberta invested $1 billion in the fund..The UCP government said it will maintain balanced budget and keep net debt to GDP ratio below 30% with a forecast of 10.3% in 2022-23. It will also align per capita spending with other major provinces..“For too long, governments in Alberta refused to exercise fiscal discipline during boom times. Those days are over. Alberta’s government is making the prudent decision to save and invest surplus revenues so future generations can benefit from the prosperity of today.” Minister of Finance Jason Nixon said.
