Alberta Closes 2024-25 Fiscal Year with Historic $8.3 Billion Surplus

Strategic Insights -

The Government of Alberta has announced a historic $8.3 billion surplus for the 2024-25 fiscal year, setting a solid foundation for the province's economic stability in uncertain times ahead. The surplus is largely due to higher-than-expected resource revenues, corporate and personal income tax revenue, and impressive investment income. Premier Danielle Smith and President of Treasury Board and Minister of Finance Nate Horner emphasized the importance of the surplus in strengthening the province's economic position, repaying debt, and saving for the future.

Key Takeaways:

  • Alberta's $8.3 billion surplus is the largest in the province's history, marking the fourth consecutive surplus.
  • The surplus is primarily driven by higher-than-expected resource revenues, corporate and personal income tax revenue, and investment income.
  • The government will allocate half of the surplus ($2.6 billion) towards debt repayment or savings in the Alberta Heritage Savings Trust Fund, while the other half ($2.6 billion) will be allocated to the Alberta Fund for future use.
  • Revenue in 2024-25 was $82.5 billion, a $8.9 billion increase from estimated in Budget 2024, attributed to non-renewable resource revenue, tax revenue, and other sources.
  • Expense in 2024-25 was $74.1 billion, a $967 million increase from estimated in Budget 2024, including $29.6 billion in health expense, $17.2 billion for education, and $1.9 billion for disaster relief and emergency supports.
  • The province ended the year with taxpayer-supported debt of $85.2 billion, with total debt-servicing costs decreasing by $0.2 billion from budget.
  • West Texas Intermediate oil prices averaged $74.34 per barrel in 2024-25, slightly higher than budgeted, and the light-heavy oil price differential was $2.94 narrower than estimated in budget.

Statistics:

  • $8.3 billion: Alberta's surplus for the 2024-25 fiscal year
  • $82.5 billion: Revenue in 2024-25, a $8.9 billion increase from estimated in Budget 2024
  • $74.1 billion: Expense in 2024-25, a $967 million increase from estimated in Budget 2024
  • $85.2 billion: Taxpayer-supported debt at the end of 2024-25
  • $3.2 billion: Total debt-servicing costs in 2024-25, a $0.2 billion decrease from budget
  • $74.34: Average West Texas Intermediate oil price per barrel in 2024-25
  • $13.06: Average light-heavy oil price differential per barrel in 2024-25

Sources:

  • M2 PressWIRE-June 30, 2025-: Strong year-end surplus for a stronger Alberta