Budget highlights

Overview

Budget 2020 keeps government on track to balance the budget by 2022-23, while investing in Alberta's future. It takes a measured approach that focuses on:

• Getting services to people who need them
• Getting Alberta back to work
• Getting spending under control
• Getting a fair deal

Download the complete Budget 2020 Fiscal Plan (PDF, 6.7 MB)

Budget 2020 maintains budgets at record levels for health, education and core social services. We’re refocusing how dollars are spent to make sure services get to the people they’re meant to serve.

Reducing vaping harms

Budget 2020 is making life better for Albertans - and young Albertans - by introducing a tax on vaping devices and liquids to help discourage youth from buying these products.

Living within our means

We remain committed to spending only what we can afford so we can continue providing services now and in the future. Refocused spending will ensure Albertans receive the outcomes they deserve through programs that are effective and sustainable.

Chart 1: Spending compared to others (per capita)
 

Source: Amounts for 2008-09 to 2018-19 are based on Statistics Canada data. Amounts for Alberta from 2019-20 onward are based on the amounts presented in the budget. Expenditures for BC, ON, QB from 2018-19 onward were adjusted based on the percentage increase provided in each province's budget.

As part of A Blueprint for Jobs, we are creating an environment where businesses can thrive and create good jobs with good wages for hard working Albertans — allowing them to contribute to the economy, give back to their communities and pave the way forward for the next generation of Albertans.

With the Job Creation Tax Cut as a foundation, we are building on Alberta's many existing strengths to get Albertans working, revitalize Alberta's economy and continue providing the critical government programs and services Albertans expect.

We will leverage our strengths to support further economic diversification, innovation, business attraction and investment in key sectors. These include: energy, tourism, finance/fintech, forestry, tech, agriculture, and aviation.

Alberta's tax advantage

Albertans and Alberta businesses continue to pay less in overall taxes compared to other provinces, with low personal and corporate income taxes, and no sales tax, health premiums or payroll tax.

Today, Alberta has the lowest corporate tax rate in Canada. By 2022, Alberta will have one of the lowest corporate tax rates in North America.

Chart 2: Additional taxes paid by other provinces compared to Alberta (in $ thousands)

Job creation tax cut

The Job Creation Tax Cut supports diversification and innovation and leaves investment decisions up to the market - not government.

The corporate tax rate has already been reduced from 12% to 10%. It will continue to go down 1% each year until 2022.

When it reaches 8%, Alberta's corporate tax rate will be 30% lower than the next lowest province and lower than in 44 U.S. states.

Table 2: Our competitive advantage

Significant improvement in Alberta's business tax competitiveness

Chart 3: Corporate Income Tax Rates, 2022 (combined federal and state/provincial)

Investing in infrastructure

Budget 2020 continues to recognize that roads, schools and health facilities are critical to economic success.

Budget 2020 introduces a Capital Plan to spur job creation in Alberta, helping many Albertans get back to work. There will be funding in the Capital Plan for new schools, hospital projects, roads and other infrastructure projects.

The 2020 Capital Plan accelerates our already aggressive Capital Plan with a focus on infrastructure that advances jobs and economic growth. New projects worth an estimated $772 million over the next three years will create approximately 3,000 new jobs by 2022.

Chart 4: Budget 2020 Capital Plan

Budget 2020 addresses Alberta's financial debt while ensuring Albertans can access the programs and services they need. It supports front-line public services by maintaining annual funding to health, education and social services, while making key investments in Alberta's economy to restore investor confidence and attract more job creators to our province.

Alberta's deficit has declined more than expected. With the deficit $1.2 billion lower than projected in Budget 2019, Alberta taxpayers can expect to pay $35 million less in debt servicing costs. This is equivalent to the cost of 135 long-term care beds or a new K-9 school.

Chart 1: Budget 2020 Key Fiscal Metrics (billions of dollars)

Source: Treasury Board and Finance
*Numbers may not add due to rounding

Alberta’s contribution to Canada

With only 12% of Canada’s population, Alberta has been a major contributor to the country’s economy for decades. Alberta’s ongoing contributions to Canada play a driving role in sustaining the national economy, as well as programs and services all Canadians rely on.

Over the past five years (2014–18), Alberta’s contribution to the federal government has averaged $20 billion per year. What does that represent in federal programs and services?

What does Alberta's $20 billion fiscal contribution represent in federal programs?

The Fair Deal Panel

The Fair Deal Panel has heard from more than 7,000 Albertans and is exploring ideas to strengthen our economy, give Alberta a stronger voice and increase provincial power within confederation. The panel held town hall meetings from December 2019 through January 2020 across Alberta in:

• Airdrie
• Calgary
• Edmonton
• Fort McMurray
• Fort Saskatchewan
• Grande Prairie
• Lethbridge
• Lloydminster
• Medicine Hat

The panel will report its findings to the Government of Alberta by March 31, 2020.