Finance Minister Travis Toews spoke at an event in Lethbridge in June 2022. (Photo: Lethbridge News Now)

By David Opinko/LethbridgeNewsNOW

Alberta government maintains forecasted $12.3 billion surplus

Nov 24, 2022 | 2:49 PM

EDMONTON – The provincial government says Alberta remains in a strong financial position.

Premier Danielle Smith and Finance Minister Travis Toews presented the second quarter fiscal update on Thursday.

A media release from the Government of Alberta states that continued high revenues from bitumen royalties, corporate income tax, and other revenue streams have allowed it to maintain its forecasted budget surplus of $12.3 billion for this fiscal year.

Revenues are forecast at $76.9 billion and expenses at $64.6 billion.

Toews says he plans to pay down $13.4 billion of the provincial debt this fiscal year, reducing the debt to $79.8 billion. The government claims that this will be the largest single-year debt payment in Alberta’s history.

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“Our disciplined fiscal approach combined with our focus on investment attraction, economic growth, and improved commodity prices, has resulted in material surpluses,” Toews says.

The minister adds that the surplus will allow for a timely response to the affordability crisis that many families are facing.

“In the face of a potential global recession, Albertans can rest assured our province is in the best position possible as a result of our focus on responsible fiscal management over the last three years,” says Toews. “By investing in savings and reducing debt for future generations, we continue to make Alberta the best place to live, work and raise a family.”

Smith says, when she became premier, she promised to continue to balance the budget to ensure Albertans were not on the hook for rising debt.

“We remain focused on doing everything we can to make life more affordable for every Albertan, and to strengthen the economy through jobs and diversification to provide opportunities, prosperity and freedom to all Albertans and families,” says Smith.

“Our disciplined fiscal approach combined with our focus on investment attraction, economic growth, and improved commodity prices, has resulted in material surpluses,” _{Travis Toews}

Earlier this week, Smith announced the proposed Inflation Relief Act, a $2.4 billion package that includes payouts to seniors, Albertans receiving disability benefits, and families with children. It would also provide for the suspension of the provincial fuel tax and continued relief on utilities and gas.

The province says Alberta’s economic outlook remains strong, but risks are increasing with high inflation, rising interest rates, and geopolitical unrest.

However, the government officials believe it is well-positioned to weather these challenges.

Alberta’s real GDP is expected to grow by 4.8 per cent in 2022 and 2.7 per cent in 2023.

The Conference Board of Canada said in an August 2022 report that Alberta and Saskatchewan were expected to lead the country’s economic growth with the oil and gas sector playing a large part in that.