Revenue

Overview

While Alberta’s revenue has been negatively impacted by the pandemic and reduced energy demand, it is starting to grow again.

Provincial revenue is projected to be $43.7 billion in 2021-22, an increase of 3.3%.

Read the Budget 2021 Revenue Chapter (PDF, 6.0 MB)

Forecast

Provincial revenue is projected to be $42.3 billion in 2020-21, or $7.7 billion lower than estimated in Budget 2020, and 8.5% lower than in 2019-20.

Table 1. Budget 2021 Revenue (millions of dollars)

Source: Treasury Board and Finance
Revenue sources	2019-20 Actual	2020-21 Budget	2020-21 Forecast	2021-22 Estimate	2022-23 Target	2023-24 Target
Income and other taxes	21,098	22,887	18,482	19,065	20,669	22,336
Non-renewable resource revenue	5,937	5,090	1,978	2,856	4,718	5,869
Transfers from Government of Canada	9,072	9,110	11,381	10,181	9,872	9,785
Investment income	2,828	2,630	2,390	2,205	2,325	2,478
Net income from government business enterprises	(225)	2,358	1,227	1,877	2,065	2,472
Premiums, fees and licences	3,929	4,194	3,960	4,133	4,227	4,339
Other	3,585	3,726	2,878	3,380	3,546	3,586
Total revenue	46,224	49,996	42,296	43,697	47,422	50,865

Non-renewable resource revenue

Non-renewable resource revenue in 2021-22 is estimated at $2.9 billion, $878 million more than in 2020-21, due mainly to higher bitumen and conventional oil royalties as oil prices and production continue to stabilize and to increase.

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

Source: Treasury Board and Finance
Revenue sources	2019-20 Actual	2020-21 Budget	2020-21 Forecast	2021-22 Estimate	2022-23 Target	2023-24 Target
Bitumen royalty	4,089	3,211	1,107	1,482	2,801	3,894
Crude oil royalty	1,175	1,135	418	627	858	926
Natural gas and by-products royalty	371	429	296	467	729	707
Bonuses and sales of Crown leases	120	177	29	151	204	221
Rentals and fees/coal royalty	182	137	128	128	127	120
Total resource revenue	5,937	5,090	1,978	2,856	4,718	5,869

Tax revenue

Tax revenue is forecast at $19.1 billion in 2021-22, $583 million or 3.2% higher than in 2020-21. The education property tax requisition is frozen at 2019-20 levels for a second consecutive year to continue easing financial burdens on Albertans and businesses. The government reduced the corporate income tax rate in July 2020 to encourage investment and job creation.

Personal income tax

Personal income tax revenue in 2021-22 is estimated at $11.6 billion, an increase of $711 million, or 6.5% from 2020-21. It is expected to rise to $13.3 billion by 2023-24 due to improving employment and household income growth.

Business taxes

Corporate income tax is forecast at $1.9 billion in 2021-22, a decrease of $351 million from 2020-21. It has deteriorated in 2020-21 and 2021-22 due to the significant impacts of COVID-19, the global recession and collapse in oil demand, prices and production.

Tax revenue

Table 3. Tax revenue (millions of dollars)

Revenue sources	2019-20 Actual	2020-21 Budget	2020-21 Forecast	2021-22 Estimate	2022-23 Target	2023-24 Target
Personal income tax	11,244	12,566	10,936	11,647	12,439	13,258
Corporate income tax	4,107	4,539	2,242	1,891	2,482	3,139
Other taxes	5,747	5,782	5,304	5,527	5,748	5,939
Total	21,098	22,887	18,482	19,065	20,669	22,336