Revenue

Overview

As of the first quarter fiscal update, Alberta’s revenue forecast has improved, with global oil prices strengthening faster than expected and an improved economic outlook including lower unemployment and increased exports.

Download: 2021-22 First Quarter Fiscal Update and Economic Statement (PDF, 1.1 MB)

Estimate

Provincial revenue is projected to be $55 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
Income and other taxes	19,578	19,065	20,252	1,187
Non-renewable resource revenue	3,091	2,856	9,760	6,904
Transfers from Government of Canada	10,532	10,181	11,706	1,525
Investment income	2,643	2,205	3,322	1,117
Net income from government business enterprises	(83)	1,877	2,020	143
Premiums, fees and licences	4,021	4,133	4,456	323
Other	3,355	3,380	3,464	84
Total revenue	43,137	43,697	54,980	11,283

Non-renewable resource revenue

Non-renewable resource revenue in 2021-22 is now estimated at $9.8 billion, an increase of $6.9 billion from budget, due mainly to higher bitumen royalties as oil prices have been stronger than expected.

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
Bitumen royalty	2,006	1,482	7,065	5,583
Crude oil royalty	466	627	1,238	611
Natural gas and by-products royalty	465	467	1,180	713
Bonuses and sales of Crown leases	24	151	143	(8)
Rentals and fees/coal royalty	130	128	134	6
Total resource revenue	3,091	2,856	9,760	6,904

Tax revenue

Tax revenue is forecast at $20.3 billion in 2021-22, $1.2 billion more than expected in Budget 2021, as the economy is expected to recover more 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.