Since Budget 2020 was released in February, Alberta has experienced unprecedented economic impact from the COVID-19 pandemic and global oil price crash.
The First Quarter Fiscal Update and Economic Statement show the toll both challenges have taken on province.
We are committed to making the investments need to kick-start Alberta’s economic recovery. The Alberta Recovery Plan builds on work started in Budget 2020 and supports immediate jobs for Albertans.
As a result of the pandemic and decline in oil prices, Alberta’s economy (measured by real Gross Domestic Product, or GDP), is expected to contract by 8.8% in 2020. This decline is expected to be followed by a partial rebound of 4.6% in 2021.
Alberta’s revenue has been negatively impacted due to lower income taxes, resource and gaming revenue Provincial revenue is projected to be $38.4 billion in 2020-21, or $11.5 billion lower – a 23% decrease – than estimated in Budget 2020.
We are committed to reducing the tax burden on Albertans and creating a business climate that supports job creators. This low-rate, broad-based tax approach will level the playing field for all job creators, rather than a select few and continue to make Alberta one of the most competitive places to invest in North America.
We are accelerating our Capital Plan, with a focus on infrastructure that advances jobs and economic growth. The plan honours previous commitments to build and maintain key infrastructure projects and introduces new projects that will create opportunities for private sector participation and support job creation.
Health and education
Budget 2020 maintains budgets at record levels for health and education. We’re refocusing how dollars are spent to make sure services get to the people they’re meant to serve.
An additional $500 million has been committed to respond to the COVID-19 public health crisis to support front-line health professionals working to keep Albertans safe and healthy.
Download detailed documents outlining the government's financial plans.
Watch the news conference
Finance Minister Travis Toews provides details on Budget 2020.
- August 27, 2020COVID-19 and oil price collapse crush province with historic deficit | La COVID-19 et l'effondrement des prix du pétrole écrasent une province historiquement déficitaire
The first quarter report for 2020-21 forecasts Alberta’s deficit at $24.2 billion after the devastating economic impacts of the COVID-19 pandemic and oil price crash.