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Alberta

Alberta fiscal update shows improved surplus but raises caution flags about debt

Published

6 months ago

2 minute read

From the Canadian Taxpayers Federation

Author: Kris Sims 

Fiscal update shows accounting surplus of $2.9 billion

Provincial debt projected to be $86.1 billion

The Canadian Taxpayers Federation is cautioning the Alberta government for its increased borrowing and looming government union contract demands in response to the first quarter fiscal update.

“It’s very good news to see the provincial surplus increasing, but taxpayers are concerned the debt is still going up,” said Kris Sims, CTF Alberta Director. “Premier Danielle Smith did the right thing by passing a law to save money in the Heritage Fund and now the government needs to deliver its promised income tax cut.”

The Alberta government released its first quarter fiscal update Thursday.

The provincial surplus is forecasted at $2.9 billion, which is a $2.5-billion increase from February’s thin forecast surplus of $367 million.

The provincial debt is forecasted to hit $86.1 billion by the end of this fiscal year, up $4.2 billion from the last fiscal year.

Interest on the debt continues to be a challenge, with the government estimated to spend about $3.2 billion on interest charges this fiscal year.

Government revenue is expected to reach $76.2 billion, which is $2.7 billion higher than estimated in Budget 2024. Income tax revenue is expected to be $513 million higher than estimated in Budget 2024.

The government is spending $73.2 billion, which is $101 million higher than estimated in Budget 2024.

Finance Minister Nate Horner raised the issue of government union contract negotiations this happening fall.

“Collective bargaining negotiations are underway with thousands of public sector workers, including teachers and nurses and we’ve promised to cut personal income taxes to save Albertans $1.4 billion each year,” Horner said in a news conference.

“Even though this is an improved surplus, the government doesn’t have cash to spare, so it can’t be blowing the budget on big pay hikes for government unions this fall,” Sims said. “The Alberta government needs to deliver on its promise to cut income taxes.”

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Alberta

Former Chief Judge of Manitoba Proincial Court will lead AHS third-party investigation into AHS procurement process

Published on March 3, 2025

By

Deputy Minister of Jobs, Economy and Trade Christopher McPherson has issued the following statement on an independent third-party investigation into procurement and contracting processes used by the Government of Alberta and Alberta Health Services (AHS):

Deputy Minister of Jobs, Economy and Trade Christopher McPherson has issued the following statement on an independent third-party investigation into procurement and contracting processes used by the Government of Alberta and Alberta Health Services (AHS):

“While serving as Acting Deputy Minister of Executive Council, Premier Danielle Smith asked me to establish a credible, independent, third-party investigation into the procurement processes used by the Government of Alberta and AHS and their outcomes.

“I have informed Premier Smith that the Honourable Raymond E. Wyant, former Chief Judge of the Provincial Court of Manitoba, will lead this investigation. I asked Premier Smith to issue a ministerial order to facilitate his work and she has done so. Judge Wyant’s work on this matter begins immediately.

“Judge Wyant was appointed to the Manitoba bench in 1998 before becoming Chief Judge in 2002. Prior to his service on the bench, Judge Wyant worked as a criminal defence lawyer and Crown attorney and was acting deputy director of Manitoba prosecutions at the time of his appointment to the Bench. He has also taught law for many years at Robson Hall at the University of Manitoba.

“Judge Wyant will review the relevant legislation, regulations and policies related to procurement typically used by Government of Alberta departments and agencies, specifically AHS, and their application to the procurement of pharmaceuticals and to services offered by chartered surgical facilities. Questions that Judge Wyant will consider are outlined in the attached terms of reference, and include whether or not any elected official, Government of Alberta or AHS employee, or other individuals, acted improperly during the procurement processes. Judge Wyant will make recommendations to the government for improvement or further action as appropriate.

“Appointed under the Government Organization Act, Judge Wyant will operate independently of government. The Government of Alberta will provide Judge Wyant with access to all relevant documents held by its departments and AHS, as well as facilitate interviews with relevant individuals.

“Judge Wyant has been given a budget of $500,000 to undertake this important work, including to retain legal and audit assistance at his discretion. He is being paid $31,900 per month, which is the same remuneration rate as the Chief Justice of the Alberta Court of Justice.

“To ensure additional independence, Service Alberta and Red Tape Reduction will hold the budget for this third-party investigation.

“Judge Wyant will deliver an interim written report by May 30, 2025. A final written report and recommendations will be delivered by June 30, 2025, and it will be posted on alberta.ca.”

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Alberta

Alberta Income Tax cut is great but balanced budgets are needed

Published on February 28, 2025

By

By Kris Sims 

The Canadian Taxpayers Federation is applauding the Alberta government for giving Albertans a huge income tax cut in Budget 2025, but is strongly warning against its dive into debt by running a deficit.

“Premier Danielle Smith keeping her promise to cut Alberta’s income tax is great news, because it means huge savings for most working families,” said Kris Sims, CTF Alberta Director. “Families are fighting to afford basics right now, and if they can save more than $1,500 per year thanks to this big tax cut, that would cover a month’s rent or more than a month’s worth of groceries.”

Finance Minister Nate Horner announced, effective this fiscal year, Alberta will drop its lowest income tax rate to eight per cent, down from 10 per cent, for the first $60,000 of earnings.

The government estimates this income tax cut will save the average Alberta worker about $750 per year, or more than $1,500 per year for a two-person working family.

Albertans earning less than $60,000 a year will see a 20 per cent reduction to their annual provincial income tax bill.

The budget also contained some bad news.

The province is running a $5.2 billion deficit in 2025-26 and the government is planning to keep running deficits for two more years.

Total spending has gone up from $73.1 billion from last budget to $79.3 billion this year, an increase of 8.4 per cent.

“If the government had frozen spending at last year’s budget level, the province could have a $1 billion surplus and still cut the income tax,” said Sims. “The debt is going up over the next few years, but we caught a lucky break with interest rates dropping this past year, so we aren’t paying as much in interest payments on the debt.”

The province’s debt is now estimated to be $82.8 billion for 2025-26.

Interest payments on the provincial debt are costing taxpayers about $2.9 billion, about a 12 per cent decrease from last year.

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