Overview

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)

Forecast

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)

Source: Treasury Board and Finance
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
Investment income 2,828 2,630 1,544 (1,086)
Net income from government business enterprises (225) 2,358 720 (1,638)
Premiums, fees and licences 3,929 4,194 3,869 (325)
Other 3,585 3,727 3,036 (691)
Total revenue 46,224 49,996 38,449 (11,547)

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)

Source: Treasury Board and Finance
Resource revenue 2019-20 Actual Budget 2020 2020-21 Q1 Forecast Change from Budget to Q1
Bitumen royalty 4,089 3,211 686 (2,525)
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

Income taxes

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.

Business taxes

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.

Tax revenue

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)
Carbon tax 189 0 0 0
Other taxes 3,066 3,223 2,770 (453)
Total 21,098 22,887 18,100 (4,787)

Budget documents

Budget 2020 Fiscal Plan (PDF, 6.7 MB)

Budget 2020 Highlights (PDF, 1.7 MB)

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.