According to the new provincial budget released Thursday, Alberta will flip from a $5.8-billion budget surplus in 2024-2025 to a $5.2-billion budget deficit in 2025-2026, with more deficits projected over the following two years. But Albertans shouldn’t be surprised — it’s all part of the roller-coaster Premier Danielle Smith’s government signed up for by attempting […]
The Alberta government's recent budget reveals a significant shift from a $5.8 billion surplus in 2024-2025 to a projected $5.2 billion deficit in 2025-2026, with further deficits expected over the next two years. This financial downturn is attributed to the province's reliance on volatile resource revenues, a cycle that has led to boom-and-bust budgeting historically. The budget highlights a $4.4 billion drop in resource revenue, influenced by factors such as fluctuating oil prices and tariffs, while spending continues to rise. Additionally, the introduction of tax cuts will further reduce government revenues. These changes are expected to increase Alberta's debt, with debt interest payments projected to exceed $700 per Albertan by 2027-2028.
