• Fiscal update shows surplus at $2.4 billion
• Provincial debt is projected to be $76.7 billion

LETHBRIDGE, AB: The Canadian Taxpayers Federation is applauding the Alberta government for staying on track to balance the budget and pay down the debt in response to the first quarter fiscal update.

“It’s very good news to see the debt going down and the surplus being put to good use,” said Kris Sims, Alberta Director for the Canadian Taxpayers Federation. “Premier Danielle Smith passed spending restraint into law in the spring and the government must stick to that plan even when special interest groups try to convince the government to spend more money.”

The Alberta government released its first quarter fiscal update Thursday.

The provincial surplus stands at $2.4 billion.

The provincial debt is projected to be $76.7 billion as of March 31, 2024, down $2.6 billion from the year previous.

On the revenue side, the government took in more than it had expected:

• $71.1 billion in total revenue is forecasted, $500 million higher than estimated in Budget 2023.
• $21.4 billion in income tax revenue is forecasted, $1.4 billion higher than estimated in Budget 2023.

In other taxes, the government took in $539 million less than estimated in Budget 2023, largely due to the continued suspension of the provincial fuel tax of 13 cents per litre of gasoline and diesel.

Interest on the declining debt continues to be a challenge, with the government estimated to spend about $3 billion on interest charges this fiscal year, despite lessening the debt load. This increase in expense is largely due to the increased interest rate.

The government passed legislation in March requiring the government to balance the budget, restrain spending increases to the rate of inflation and population growth and to pay down the debt.

“By focusing on paying down the debt, Albertans will pay less in debt interest payments faster, saving taxpayers’ money,” said Sims. “When Alberta delivers balanced budgets and pays down its debt, that sends a signal that we are a good province to do business with, boosting our credit ratings and attracting people and businesses to the province.”

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