Budget

Revenue

Government projections of revenue from taxes, non-renewable resource transfers and other sources.

Overview

Alberta’s revenue has seen large swings since the onset of the pandemic. Total revenue in 2021-22 is now expected to be $18 billion more than the forecast in Budget 2021.

As oil prices strengthen, the economy continues to grow and the province attracts more investment, total revenue is expected to increase to $62.6 billion in 2022-23.

Forecast

Corporate income taxes and non-renewable resource revenues are expected to strengthen and federal transfers are expected to increase in 2022-23, while investment income will become more moderate after an exceptionally strong 2021.

Table 1. Budget 2022 Revenue (millions of dollars)

Source: Treasury Board and Finance
Revenue sources 2020-21 Actual 2021-22 Budget 2021-22 Forecast 2022-23 Estimate 2023-24 Target 2024-25 Target
Personal income tax 11,257 11,647 13,261 13,382 14,442 15,455
Corporate income tax 3,037 1,891 3,343 4,040 4,517 4,896
Other tax revenue 5,285 5,527 5,456 5,612 5,778 5,913
Resource revenue – Bitumen 2,006 1,482 9,515 10,349 9,213 8,160
Resource revenue – Other 1,085 1,374 3,722 3,491 3,115 2,756
Transfers from Government of Canada 10,532 10,181 11,306 12,054 11,641 11,895
Investment income 2,643 2,205 4,660 3,173 3,492 3,699
Net income from government business enterprises (83) 1,877 2,509 2,435 2,630 2,656
Premiums, fees and licences 4,021 4,133 4,304 4,490 4,606 4,736
Other 3,355 3,380 3,616 3,581 3,700 3,685
Total revenue 43,137 43,697 61,692 62,607 63,134 63,852

Non-renewable resource revenue

After collapsing in spring of 2020 with the onset of the pandemic, energy prices began climbing dramatically later in 2021. Global energy demand has surged since vaccines first started enabling looser health restrictions. Non-renewable resource revenue is expected to moderate from their current highs over the next few years as the global supply-demand imbalance resolves and prices decrease.

Table 2. Non-renewable resource revenue (millions of dollars)

Source: Treasury Board and Finance
Revenue sources 2020-21 Actual 2021-22 Estimate 2021-22 Forecast 2022-23 Estimate 2023-24 Target 2024-25 Target
Bitumen royalty 2,006 1,482 9,515 10,349 9,213 8,160
Crude oil royalty 466 627 1,666 1,670 1,619 1,478
Natural gas and by-products royalty 465 467 1,722 1,458 1,151 959
Bonuses and sales of Crown leases 24 151 185 236 225 206
Rentals and fees/coal royalty 130 128 149 127 120 113
Total resource revenue 3,091 2,856 13,237 13,840 12,328 10,916

Tax revenue

Tax revenue is forecast at $23 billion in 2022-23, 37% of total revenue. This is $974 million, or 4.4% higher than in 2021-22. Alberta’s improving economy and employment rate are expected to drive increases of $697 million in corporate income tax, $121 million in personal income tax, and $120 million in fuel and insurance taxes. Tax revenue is forecast to grow by an average of 6.8% for the following two years, reaching $26.3 billion by 2024-25.

Personal income tax

Personal income tax revenue in 2022-23 is estimated at $13.4 billion, an increase of $121 million from 2021-22. Personal income tax in 2021-22 is now expected to be $1.6 billion higher than the Budget 2021 forecast due to the growing economy, job creation, and population and household income growth.

Corporate income tax

Corporate income tax revenue is estimated at $4 billion in 2022-23, $697 million higher than the forecast for 2021-22. Revenue from the corporate income tax rose dramatically in 2021-22, increasing $1.5 billion from Budget 2021 as energy prices strengthened and economic activity broadened, supporting growth in corporate profits. Alberta has the lowest corporate income tax rate in Canada, which is part of the government’s efforts to foster a competitive business environment and attract investment. As more companies expand their businesses in Alberta, revenue from the corporate income tax will continue to increase.

Table 3. Tax revenue (millions of dollars)

Revenue sources 2020-21 Actual 2021-22 Budget 2021-22 Forecast 2022-23 Estimate 2023-24 Target 2024-25 Target
Personal income tax 11,257 11,647 13,261 13,382 14,442 15,455
Corporate income tax 3,037 1,891 3,343 4,040 4,517 4,896
Education property tax 2,483 2,472 2,477 2,504 2,541 2,566
Other taxes 2,802 3,055 2,979 3,108 3,237 3,347
Total 19,579 19,065 22,060 23,034 24,737 26,264

Budget documents

More budget information

Find out what Budget 2022 means for you.

A summary of Alberta's Budget 2022 economic forecast.

Budget 2022 invests in the infrastructure families and communities need.

Summary of government spending according to Budget 2022.