Alberta's forecast of massive swing to surplus not just 'heyday oil prices,' says finance minister

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Alberta's forecast of 'massive' swing to surplus not just 'heyday oil prices'

The province will end the year with a far smaller deficit than initially projected: $3.2 billion, and budget surpluses in each of the next three years — a massive reversal in fortune from only a year ago when the province was anticipating an $18-billion deficit in 2021-22.

Total revenue is forecasted to reach $61.7 billion this year, a dramatic $18 billion upward swing from what was predicted in the depths of the pandemic last February — driven primarily by rising non-renewable resource revenues and income tax receipts as a result of increased employment and household income growth.

While many economists had been expecting Alberta’s fiscal outlook to improve with oil prices climbing more than 20 per cent in 2022, the budget tabled on Feb. 24 in Alberta’s capital still raised eyebrows. Non-renewable resource revenue is forecasted to reach $13.8 billion in 2022-23 — the second highest amount ever recorded, according to the government.

“To say that all of this was accomplished because of energy prices simply isn’t true. The facts do not bear out.”

 

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