Nearly all of government’s revenue streams have been negatively impacted by the COVID-19 pandemic and global oil price crash.
Almost 80% of the drop in revenue is attributed to lower income taxes, resource and gaming revenue.
Download: 2020-21 First Quarter Fiscal Update and Economic Statement (PDF, 949 KB)
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.
Table 1. 2020-21 First Quarter Fiscal Update and Economic Statement Revenue (millions of dollars)
|Revenue sources||2019-20 Actual||Budget 2020||2020-21 Q1 Forecast||Change from Budget to Q1|
|Income and other Taxes||21,098||22,887||18,100||(4,787)|
|Non-renewable resource revenue||5,937||5,090||1,224||(3,866)|
|Transfers from Government of Canada||9,072||9,110||9,956||846|
|Net income from government business enterprises||(225)||2,358||720||(1,638)|
|Premiums, fees and licences||3,929||4,194||3,869||(325)|
Non-renewable resource revenue
Non-renewable resource revenue is estimated to decrease in response to the global oil price crash.
Revenue from non-renewable resources is forecast at $1.2 billion in 2020-21, down $3.9 billion from what was forecast in Budget 2020.
For more information, see the updated economic and energy price assumptions on the Economic Outlook page.
Table 2. Non-renewable resource revenue (millions of dollars)
|Resource revenue||2019-20 Actual||Budget 2020||2020-21 Q1 Forecast||Change from Budget to Q1|
|Crude oil royalty||1,175||1,135||316||(819)|
|Natural gas and by-products royalty||371||429||77||(352)|
|Bonuses and sales of Crown leases||120||177||22||(155)|
|Rentals and fees/coal royalty||182||137||123||(14)|
|Total resource revenue||5,937||5,090||1,224||3,866|
Tax revenue is forecast to be lower in 2020-21. Household incomes and corporate profits have deteriorated due to the COVID-19 pandemic.
Tax revenue in 2020-21 is estimated at $18.1 billion, a $4.8 billion decrease from Budget 2020 forecasts.
Personal income tax
Personal income tax revenue is estimated at $10.7 billion in 2020-21, a decrease of $1.9 billion, from Budget 2020 forecasts.
Reducing the corporate income tax rate increases competitiveness and attracts investment by reducing the cost of doing business in Alberta, as suggested by the MacKinnon Panel.
Corporate income tax is forecast at $2.1 billion in 2020-21, a decrease of $2.4 billion from Budget 2020 forecasts.
Table 3. Tax revenue (millions of dollars)
|2019-20 Actual||Budget 2020||2020-21 Q1 Forecast||Change from Budget to Q1|
|Personal Income tax||11,244||12,566||10,712||(1,854)|
|Corporate income tax||4,107||4,539||2,146||(2,393)|
|Education property tax||2,475||2,559||2,472||(87)|
More budget information
A plan to get Albertans back to work, make life better and stand up for Alberta.
A summary of Alberta’s Budget 2020 economic forecast and analysis.
Budget 2020 invests in the infrastructure families and communities need.
Budget 2020 continues to optimize Alberta’s tax system.