Alberta
Finance Minister Nate Horner says Alberta on track to $2.4 billion surplus
Q1 update: Continued fiscal growth
Alberta’s strong fiscal management continues to secure Alberta’s future.
Alberta is on course to record a $2.4-billion surplus at the end of 2023-24, despite an unprecedented wildfire season and ongoing economic volatility. This is $94 million higher than forecast in Budget 2023.
Strong and prudent fiscal management will help Alberta remain the economic engine of Canada. The government’s new fiscal framework requires the government to use at least half of available surplus cash to pay down debt, freeing up money that can support the needs of Alberta families now and for decades to come. Based on the first quarter update, Alberta plans to eliminate $2.6 billion in taxpayer-supported debt this fiscal year.
“Alberta’s finances remain strong, and thanks to our new fiscal framework, Alberta’s fiscal position is poised to become even stronger. Our continued priorities of paying down debt and saving for the future will ensure we have the capacity to meet Albertans’ needs both today and well into the future.”
After the required 50 per cent of projected available surplus cash is used to pay off maturing debt, remaining surplus cash will be allocated to the Alberta Fund, where it can be used for additional debt repayment, contributions to the Alberta Heritage Savings Trust Fund and one-time initiatives that do not lead to a permanent increase in government spending. A projected $2.6 billion will be set aside in the Alberta Fund in 2023-24.
Revenue
Revenue for 2023-24 is forecast at $71.1 billion, a $491-million increase from Budget 2023.
Alberta’s robust business environment is attracting investment and people from around the country, driving a projected $1.5-billion increase in corporate and personal income tax revenue.
The corporate income tax revenue forecast has increased by $889 million, following a record-high year in 2022-23. At eight per cent, Alberta’s general corporate income tax rate is the lowest in the country. Alberta’s low taxes remain one reason investors choose Alberta.
Keeping life affordable is a key priority for Alberta’s government, which is why it paused the provincial fuel tax on gasoline and diesel in January. Extending the pause to the end of 2023 will save Albertans and Alberta businesses 13 cents per litre on gasoline and diesel for the rest of the calendar year. As a result, fuel tax revenue is forecast to be reduced by $532 million – money that is going directly back into the pockets of Albertans every time they fill up their vehicle.
Between April 1 and June 30, the price of West Texas Intermediate (WTI) oil averaged US$74 per barrel. It is now forecast to average $US75 per barrel over the course of the fiscal year, $4 lower than the Budget 2023 forecast. The resulting impact on Alberta’s revenue is being offset by a narrower light-heavy oil price differential, which is now forecast to average US$15 per barrel, $5 narrower than at budget.
Bitumen royalties are projected to increase by $515 million in 2023-24; however, overall resource revenue is projected to decrease by $694 million from the budget forecast. Lower natural gas royalties account for most of the projected decrease due to weaker prices, robust North American production and the impact of wildfires on production in Alberta.
Expense
Expense for 2023-24 is forecast at $68.7 billion, a $397-million increase from Budget 2023. The expense increase before the forecast contingency allocation is $1.6 billion. Of this, $397 million is funded by dedicated revenue and $1.2 billion is set aside as a preliminary allocation from the contingency, leaving $323 million unallocated.
The unprecedented wildfire season in the province prompted Alberta’s government to act swiftly and responsibly to ensure the safety of Albertans in affected areas. To date, the government has allocated $750 million for fighting wildfires in the province this year, along with $175 million for uninsurable losses, $75 million of which is expected to be covered by the federal government, and $55 million, mainly for emergency evacuation payments. Alberta’s government will continue to support Albertans during difficult situations like natural disasters.
The operating expense forecast has increased by $179 million, mainly due to a $214-million increase in Health funding that is being fully offset by federal bilateral agreement revenue. Capital grant increases of $170 million are mainly for re-profiling projects from the 2022-23 fiscal year.
Debt servicing costs are forecast to increase $245 million from budget, mainly due to higher interest rates – reiterating the importance of government’s commitment to paying down debt.
Alberta Heritage Savings Trust Fund
The Alberta Heritage Savings Trust Fund is Alberta’s long-term savings account, and the government remains committed to growing it. The fund performed well during the 2023-24 first quarter, earning a two per cent return with a net investment income of $739 million. Its fair value of net assets on June 30 was $21.6 billion, an increase from the $21.2 billion recorded at the end of the previous fiscal year.
Over five years, the fund returned 6.4 per cent, which is 0.6 per cent above the return of its passive benchmark.
Economic outlook
By continuing to grow and diversify Alberta’s economy, Alberta’s government is continuing to exceed expectations. Alberta’s real gross domestic product is now expected to rise three per cent in 2023, up 0.2 percentage points from Budget 2023. Projections by private forecasters show the province is expected to lead the country in economic growth this year.
Robust population growth is supporting Alberta’s labour market and generating demand and activity in Alberta’s economy, ultimately boosting the province’s economic outlook. Although risks and uncertainty persist due to rising interest rates, high consumer prices and other factors, Alberta’s economy remains well-positioned to withstand any challenges that arise.
Quick facts
- The amount of surplus cash available for debt repayment and the Alberta Fund is calculated after several necessary cash adjustments are made.
- In 2023-24, the total amount available for allocation is forecast at $5.2 billion, which includes $5.1 billion carried over from the 2022-23 final results.
Alberta
Gondek’s exit as mayor marks a turning point for Calgary
This article supplied by Troy Media.
The mayor’s controversial term is over, but a divided conservative base may struggle to take the city in a new direction
Calgary’s mayoral election went to a recount. Independent candidate Jeromy Farkas won with 91,112 votes (26.1 per cent). Communities First candidate Sonya Sharp was a very close second with 90,496 votes (26 per cent) and controversial incumbent mayor Jyoti Gondek finished third with 71,502 votes (20.5 per cent).
Gondek’s embarrassing tenure as mayor is finally over.
Gondek’s list of political and economic failures in just a single four-year term could easily fill a few book chapters—and most likely will at some point. She declared a climate emergency on her first day as Calgary’s mayor that virtually no one in the city asked for. She supported a four per cent tax increase during the COVID-19 pandemic, when many individuals and families were struggling to make ends meet. She snubbed the Dec. 2023 menorah lighting during Hanukkah because speakers were going to voice support for Israel a mere two months after the country was attacked by the bloodthirsty terrorist organization Hamas. The
Calgary Party even accused her last month of spending over $112,000 in taxpayers’ money for an “image makeover and brand redevelopment” that could have benefited her re-election campaign.
How did Gondek get elected mayor of Calgary with 176,344 votes in 2021, which is over 45 per cent of the electorate?
“Calgary may be a historically right-of-centre city,” I wrote in a recent National Post column, “but it’s experienced some unusual voting behaviour when it comes to mayoral elections. Its last three mayors, Dave Bronconnier, Naheed Nenshi and Gondek, have all been Liberal or left-leaning. There have also been an assortment of other Liberal mayors in recent decades like Al Duerr and, before he had a political epiphany, Ralph Klein.”
In fairness, many Canadians used to support the concept of balancing their votes in federal, provincial and municipal politics. I knew of some colleagues, friends and family members, including my father, who used to vote for the federal Liberals and Ontario PCs. There were a couple who supported the federal PCs and Ontario Liberals in several instances. In the case of one of my late
grandfathers, he gave a stray vote for Brian Mulroney’s federal PCs, the NDP and even its predecessor, the Co-operative Commonwealth Federation.
That’s not the case any longer. The more typical voting pattern in modern Canada is one of ideological consistency. Conservatives vote for Conservative candidates, Liberals vote for Liberal candidates, and so forth. There are some rare exceptions in municipal politics, such as the late Toronto mayor Rob Ford’s populistconservative agenda winning over a very Liberal city in 2010. It doesn’t happen very often these days, however.
I’ve always been a proponent of ideological consistency. It’s a more logical way of voting instead of throwing away one vote (so to speak) for some perceived model of political balance. There will always be people who straddle the political fence and vote for different parties and candidates during an election. That’s their right in a democratic society, but it often creates a type of ideological inconsistency that doesn’t benefit voters, parties or the political process in general.
Calgary goes against the grain in municipal politics. The city’s political dynamics are very different today due to migration, immigration and the like. Support for fiscal and social conservatism may still exist in Alberta, but the urban-rural split has become more profound and meaningful than the historic left-right divide. This makes the task of winning Calgary in elections more difficult for today’s provincial and federal Conservatives, as well as right-leaning mayoral candidates.
That’s what we witnessed during the Oct. 20 municipal election. Some Calgary Conservatives believed that Farkas was a more progressive-oriented conservative or centrist with a less fiscally conservative plan and outlook for the city. They viewed Sharp, the leader of a right-leaning municipal party founded last December, as a small “c” conservative and much closer to their ideology. Conversely, some Calgary Conservatives felt that Farkas, and not Sharp, would be a better Conservative option for mayor because he seemed less ideological in his outlook.
When you put it all together, Conservatives in what used to be one of the most right-leaning cities in a historically right-leaning province couldn’t decide who was the best political option available to replace the left-wing incumbent mayor. Time will tell if they chose wisely.
Fortunately, the razor-thin vote split didn’t save Gondek’s political hide. Maybe ideological consistency will finally win the day in Calgary municipal politics once the recount has ended and the city’s next mayor has been certified.
Michael Taube is a political commentator, Troy Media syndicated columnist and former speechwriter for Prime Minister Stephen Harper. He holds a master’s degree in comparative politics from the London School of Economics, lending academic rigour to his political insights.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country
Alberta
From Underdog to Top Broodmare
WATCH From Underdog to Top Broodmare (video)
Executive Producers Jeff Robillard (Horse Racing Alberta) and Mike Little (Shinelight Entertainment)
What began as an underdog story became a legacy of excellence. Crackers Hot Shot didn’t just race — she paved the way for future generations, and in doing so became one of the most influential producers the province has known.
The extraordinary journey of Crackers Hot Shot — once overlooked, now revered — stands as one of Alberta’s finest success stories in harness racing and breeding.
Born in humble circumstances and initially considered rough around the edges, Crackers Hot Shot overcame long odds to carve out a career that would forever impact the province’s racing industry. From a “wild, unhandled filly” to Alberta’s “Horse of the Year” in 2013, to producing foals who carry her spirit and fortitude into future generations.
Her influence ripples through Alberta’s racing and breeding landscape: from how young stock are prepared, to the aspirations of local breeders who now look to “the mare that did it” as proof that world-class talent can emerge from Alberta’s paddocks.
“Crackers Hot Shot, she had a tough start. She wasn’t much to look at when we first got her” — Rod Starkewski
“Crackers Hot Shot was left on her own – Carl Archibald heard us talking, he said ‘I’ll go get her – I live by there’. I think it took him 3 days to dig her out of the snow. She was completely wild – then we just started working on her. She really needed some humans to work with her – and get to know that people are not scary.” — Jackie Starkewski
“Crackers Hot Shot would be one of the top broodmares in Albeta percentage wise if nothing else. Her foals hit the track – they’re looking for the winners circle every time.” — Connie Kolthammer
Visit thehorses.com to learn more about Alberta’s Horse Racing industry.
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