Alberta’s 2024-25 fiscal year ended with a record-breaking $8.3 billion surplus, exceeding budget projections by $8 billion, according to the 2024-25 Final Results Year-end Report. Fueled by $82.5 billion in revenue, including $22 billion from non-renewable resources and a $713-million tobacco settlement, the surplus reflects robust economic growth driven by the Trans Mountain pipeline, record oil production, and a weaker Canadian dollar. Nate Horner, President of Treasury Board and Minister of Finance believes this surplus shows the province’s strength. “The road ahead may be rough, but Alberta is built to last,” Horner said. “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.”.Questions have been asked of how the Alberta government could have reached a record surplus when in years prior there had been large deficits recorded, with 2024 posting a $5.2 billion deficit. At a press conference in Calgary on Friday afternoon, Horner said every, “fiscal year is a chapter in an ongoing story,” and although a lot of the pressure has remained the same, one thing that’s always been different for the province is the price volatility of oil where prices have gone as low as $55 a barrel and a high as $78 over the past fiscal year.“In budget 2024, we predicted West Texas Intermediate would come in at $74 and it came in at $74.34 which is pretty amazing,” he said. “We were on the right side of the currency forecast. When we look at budget 2025 and the $5.2 billion deficit we tabled, that was when oil was at $68 so there’s a six dollar difference right off the top.”.He added over the last year, oil production climbed to a record production of almost four barrels a day with rig drilling activity increasing by 4.4% and natural gas increasing despite weaker pricesRevenues were also listed at $82.5 billion, $8.9 billion more than projected in the 2024 budget. Expenses reached $74.1 billion, with increased spending on health ($27.6 billion), education ($9.9 billion), and wildfire response ($3 billion). Capital spending was $1.1 billion below budget due to project delays. Also, as part of a Canada-wide settlement, a $713-million payment from three major Canadian tobacco companies also contributed to the surplus.The reaction hasn’t all been wine and roses, as the Canadian Taxpayer’s Association has released a statement, urging the provincial government to reduce the size and cost of government, as the 2024 fiscal year end shows the debt is still going up..Kris Sims, CTF Alberta Director said, “Alberta’s debt is still going up and that’s not OK. “This government must reduce the spending and borrowing or taxpayers are going to get hammered even harder in 2025.”The province’s debt, as of 2024-25, is now estimated to be $85.2 billion, up $3.3 billion from the previous fiscal year. Sims feels the Alberta government must focus on, “reducing the size and cost of government.”Despite issues such as wildfires and global economic challenges, Premier Danielle Smith credited disciplined fiscal management for Alberta’s stability. “Alberta’s financial strength isn’t just luck, it’s the result of disciplined decisions and a clear commitment to responsible government,” Smith said. “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.” The report notes through responsible fiscal management, the province is continuing to build a stable economic foundation built on responsible fiscal management.
