Alberta government expects boost to 2024-25 surplus largely due to oil prices

Alberta’s first-quarter fiscal update shows the government expects a surplus of $2.9 billion but won’t have surplus cash in the short term and will need to borrow hundreds of millions of dollars.

Finance Minister Nate Horner said it’s an accounting surplus, meaning the money is tied up, so in the meantime the province will need to take on $641 million in short-term borrowing.

That surplus is up $2.6 billion from the slim surplus of $367 million forecast in February’s budget — largely due to higher-than-expected oil prices.

5:54 Analyzing the Alberta 2024 provincial budget

The province is pegging the price of West Texas Intermediate oil at US$76.50, up US$2.50 per barrel than what was forecast at budget.

In 2024-25, the government plans to spend $73.3 billion and rake in $76.2 billion in revenues.

Despite the operating surplus, the government has no plan to immediately introduce the personal tax cut Premier Danielle Smith promised in the 2023 election.