Alberta fiscal update shows improved surplus but raises caution flags about debt
- Fiscal update shows accounting surplus of $2.9 billion
- Provincial debt projected to be $86.1 billion
LETHBRIDGE, AB: The Canadian Taxpayers Federation is cautioning the Alberta government for its increased borrowing and looming government union contract demands in response to the first quarter fiscal update.
“It’s very good news to see the provincial surplus increasing, but taxpayers are concerned the debt is still going up,” said Kris Sims, CTF Alberta Director. “Premier Danielle Smith did the right thing by passing a law to save money in the Heritage Fund and now the government needs to deliver its promised income tax cut.”
The Alberta government released its first quarter fiscal update Thursday.
The provincial surplus is forecasted at $2.9 billion, which is a $2.5-billion increase from February’s thin forecast surplus of $367 million.
The provincial debt is forecasted to hit $86.1 billion by the end of this fiscal year, up $4.2 billion from the last fiscal year.
Interest on the debt continues to be a challenge, with the government estimated to spend about $3.2 billion on interest charges this fiscal year.
Government revenue is expected to reach $76.2 billion, which is $2.7 billion higher than estimated in Budget 2024. Income tax revenue is expected to be $513 million higher than estimated in Budget 2024.
The government is spending $73.2 billion, which is $101 million higher than estimated in Budget 2024.
Finance Minister Nate Horner raised the issue of government union contract negotiations this happening fall.
“Collective bargaining negotiations are underway with thousands of public sector workers, including teachers and nurses and we’ve promised to cut personal income taxes to save Albertans $1.4 billion each year,” Horner said in a news conference.
“Even though this is an improved surplus, the government doesn’t have cash to spare, so it can’t be blowing the budget on big pay hikes for government unions this fall,” Sims said. “The Alberta government needs to deliver on its promise to cut income taxes.”
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