Revenue

Overview

As outlined in the 2021-22 Mid-year Fiscal Update and Economic Statement, Alberta’s revenue forecast has improved, with strong global oil and natural gas prices and an encouraging economic outlook including lower unemployment and increased exports.

Download: 2021-22 Mid-year Fiscal Update and Economic Statement (PDF, 1.6 MB)

Estimate

Provincial revenue is projected to be $57.9 billion in 2021-22.

Table 1. Overall revenue (millions of dollars)

Source: Treasury Board and Finance
Revenue sources	2020-21 Actual	2021-22 Estimate	2021-22 Forecast	Change from Budget	2022-23 Target	2023-24 Target
Income and other taxes	19,578	19,065	21,412	2,347	22,039	23,728
Non-renewable resource revenue	3,091	2,856	10,908	8,052	9,858	9,231
Transfers from Government of Canada	10,532	10,181	11,367	1,186	10,393	10,043
Investment income	2,643	2,205	3,995	1,790	3,110	2,882
Net income from government business enterprises	(83)	1,877	2,284	407	2,369	2,514
Premiums, fees and licences	4,021	4,133	4,283	150	4,303	4,437
Other	3,355	3,380	3,669	289	3,570	3,627
Total revenue	43,137	43,697	57,917	14,220	55,643	56,402

Non-renewable resource revenue

Non-renewable resource revenue in 2021-22 is now estimated at $10.9 billion, an increase of $8.1 billion from budget, due mainly to higher bitumen royalties as oil prices have far exceeded expectations.

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	Change from Budget	2022-23 Target	2023-24 Target
Bitumen royalty	2,006	1,482	7,607	6,125	6,961	6,675
Crude oil royalty	466	627	1,485	858	1,390	1,334
Natural gas and by-products royalty	465	467	1,551	1,084	1,165	875
Bonuses and sales of Crown leases	24	151	124	(27)	218	229
Rentals and fees/coal royalty	130	128	141	13	124	117
Total resource revenue	3,091	2,856	10,908	8,052	9,859	9,231

Tax revenue

Tax revenue is forecast at $21.4 billion in 2021-22, $2.3 billion more than expected in Budget 2021, as the economy is expected to recover rapidly. Household incomes and corporate profits are forecast to increase more than budget estimates as the economy rebounds from the impacts of the COVID-19 pandemic. The government reduced the corporate income tax rate in July 2020 to encourage investment and job creation.

Personal income tax

Personal income tax revenue is estimated at $13.1 billion, an increase of $1.4 billion due to improving employment and household income growth.

Corporate income tax

Corporate income tax is forecast at $2.9 billion in 2021-22, an improvement of $1 billion from the budget estimate.

Tax revenue

Table 3. Tax revenue (millions of dollars)

Revenue sources	2020-21 Actual	2021-22 Estimate	2021-22 Forecast	Change from Budget	2022-23 Target	2023-24 Target
Personal income tax	11,257	11,647	13,075	1,428	13,083	13,792
Corporate income tax	3,037	1,891	2,916	1,025	3,308	4,110
Other taxes	5,285	5,527	5,421	(106)	5,648	5,826
Total	19,578	19,065	21,412	2,347	22,039	23,728