Alberta closes fiscal year with $11.6B surplus

The Government of Alberta ended the 2022-23 fiscal year with a comfortable $11.6 billion surplus, thanks to higher-than-expected oil prices.

“Our fiscal update today is a positive one, it is an indication of the progress we’ve made in securing Alberta’s finances,” said finance minister Nate Horner in his first announcement since being named to the role.

He adds that for the second year in a row, the provincial budget is balanced and reporting a surplus.

However, the year itself wasn’t easy, with volatile oil prices, the war in Ukraine and continued pandemic recovery weighing on the economy, Horner says.

“All of this impacted Alberta by increasing revenue, but also reminded us of the need to build long-term sustainability so our finances can be less sensitive to changes in circumstances beyond our control and so future generations can prosper,” the minister added.

But, the province was able to capitalize on higher-than-expected oil prices which increased Alberta’s revenue.

In total, Alberta raked in $76.1 billion in revenue, overtaking $64.5 billion in expenses.

The surplus allows the government to put “sizeable amounts” of money toward debt and save for the future.

“Our improved situation as of last year is allowing us to pay down substantial amounts of debt, reducing the burden on future generations and ensuring more money can be put to vital programs and services in decades ahead,” Horner said.

More than $13 billion in debt was paid down, he added, saving an estimated $260 million in annual debt servicing costs.

Contributions were also made to the Alberta Heritage Savings Trust Fund.

Horner also touted the efforts of Danielle Smith’s government to address the cost of living crisis — including suspending the fuel tax relief programs and the indexing of personal income taxes — initiatives the minster said helped Albertans without adding to the debt load.

NDP critic for finance and fiscal responsibility Samir Kayande, said in a statement the the annual report released Thursday “[offers] no comfort to Albertans” who are struggling to afford necessities “all of which the UCP has driven higher.”

“Today’s Annual Report looks back at a year in which global energy prices poured money into the provincial treasury and Danielle Smith forced more and more hardships onto Alberta families,” he added. “Smith’s expensive and dishonest election promises are about to collide with the reality of weakening oil prices. Prices through the first quarter of 2023 have been below Budget 2023 assumptions, and all Minister Horner had to offer was ‘I’m trying.’”