Alberta closed the 2024-25 fiscal year with its fourth consecutive surplus, totalling $8.3 billion. The increase is largely due to higher-than-expected resource revenues, corporate and personal income tax revenue and impressive investment income. In the face of rapidly changing economic conditions this year due to global trade challenges, the government will use the surplus to fortify Alberta’s economic position, repay debt and save for the future.

“Alberta’s financial strength isn’t just luck, it’s the result of disciplined decisions and a clear commitment to responsible government. While others reach for higher taxes and more debt, we’re focused on stability, savings and respect for the people who keep Alberta’s economy moving. That means more security for families, more opportunity for young people, and stronger communities across our province. In uncertain times, Alberta showing this kind of economic leadership is important.”

Danielle Smith, Premier

“This surplus shows Alberta’s strength. The road ahead may be rough, but Alberta is built to last. We’re paying down debt, saving for the future and backing the services Albertans count on. This surplus lets us save smart, spend wisely and stand strong for the long haul.”

Nate Horner, President of Treasury Board and Minister of Finance

Alberta’s economy expanded at a steady pace in 2024, supported by increased pipeline capacity through the spring opening of the Trans Mountain pipeline, record crude oil production and increased natural gas production. The price of West Texas Intermediate oil averaged $74.34 per barrel over the year, slightly higher than the $74 per barrel forecast in Budget 2024. A narrower light-heavy differential, which increases the price of Alberta’s heavy crude oil, plus a lower exchange rate also propelled higher returns for the energy sector. As a part of a Canada-wide settlement, a $713-million payment from three major Canadian tobacco companies also contributed to the surplus.

Rapid population growth and falling interest rates bolstered the provincial economy. Alberta remained the fastest-growing province in Canada in 2024. With population growth, Alberta saw strong employment gains fuelled by full-time and permanent jobs, which led to more employed Albertans contributing to the tax base. To relieve added pressure on hospitals, schools and infrastructure, the government provided record funding for health care and education and continued to invest in the priorities of Albertans.

When disaster hit, Alberta’s government answered the call. The government delivered $1.9 billion in disaster relief, including $702 million to fight wildfires, $191 million for evacuation and recovery, and $1 billion to support drought-hit farmers and producers.

After calculations and adjustments, Alberta ended the year with a $5.1-billion in surplus cash. Following the province’s mandated fiscal framework, half – or $2.6 billion – will go towards improving the province’s net financial position, either through debt repayment or savings in the Alberta Heritage Savings Trust Fund. The other half will be allocated to the Alberta Fund for future use. This can include further debt payments, more savings or one-time initiatives.

Revenue

Revenue in 2024-25 was $82.5 billion, $8.9 billion more than estimated in Budget 2024, including:

  • $22.0 billion in non-renewable resource revenue, up from $17.3 billion at budget.
    • The increase was primarily driven by higher bitumen royalties due to narrower light-heavy oil price differentials and lower exchange rates.
  • $30.4 billion in tax revenue, $1.7 billion higher than estimated in Budget 2024. This included:
    • $8.1 billion in corporate income tax, $1.1 billion more than at budget, even as the province maintained the lowest corporate income tax rate in the country.
    • A record high of $16.1 billion in personal income tax, $0.5 billion more than estimated in Budget 2024, in large part because of strong growth in personal incomes and Alberta’s growing population.

Expense

Expense in 2024-25 was $74.1 billion, $967 million more than estimated in Budget 2024, including:

  • $29.6 billion in health expense, a 2.9 per cent increase from budget, as the province began refocusing the health system to better meet the needs of patients and families, provide more surgeries, recruit more doctors and provide lab services.  
  • $17.2 billion for education, or a 1.1 per cent increase from budget, including:
    • $9.9 billion for K-12 education, with more money to hire more teachers as enrolment increased.
    • $7.2 billion for post-secondary institutions to increase seats in high-demand areas, including apprenticeship training.
  • $1.9 billion for disaster relief and emergency supports.

Debt

The province ended the year with taxpayer-supported debt of $85.2 billion. Total debt-servicing costs were $3.2 billion in 2024-25, down $0.2 billion from budget because of lower-than-expected borrowing requirements.

Oil Prices

  • A barrel of West Texas Intermediate averaged US$74.34 per barrel in 2024-25, slightly higher than the US$74 per barrel forecast in Budget 2024.
  • The light-heavy oil price differential averaged US$13.06 per barrel in 2024-25, $2.94 narrower than estimated in budget, influenced by increased demand for heavier crude and the completion of the TMX expansion project.

Alberta Heritage Savings Trust Fund

The province grew the market value of the Heritage Fund to a record high of $27.2 billion as of March 31, 2025. The Heritage Fund grew by $4.2 billion last year, fuelled by $1.9 billion in investment income and $2 billion in surplus cash reinvested from 2023-24. This growth supports Alberta’s bold plan to reach $250 billion by 2050 while diversifying the economy for a stronger future.

Through responsible fiscal management, Alberta is building a stable economic foundation and saving for a secure tomorrow. No matter the challenges ahead, Alberta has the resources and resilience to protect its prosperity.

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