Alberta shows unprecedented economic growth

This is despite the enormous costs of disaster relief.

The Alberta government has reported on its economic progress. The speech is timed to coincide with the midpoint of the budget year, which ends in March 2024.

The report was a welcome development for the province. Given the current pace of growth in its economy, Treasury is projecting a surplus of CA$ 5.5 billion by the end of the reporting period — CA$ 3.2 billion more than expected when the budget was planned in February.

"Our second-quarter fiscal update is another positive report, showing strength in Alberta’s finances and economy and positioning us for future growth and prosperity," commented provincial Finance Minister Nate Horner.

Through and through

The reason for this sharp economic growth is high bitumen royalties and higher personal and corporate income taxes. In addition, total resource revenue is projected at CA$ 19.7 billion, which is CA$ 1.3 billion higher than the starting budget forecast. Cumulatively, annual revenue is expected to be CA$ 74.3 billion with expenditures of CA$ 68.8 billion.

The main non-projected expenditure items, however, are the repayment of the provincial debt burden (CA$ 3.2 billion) and the costs of natural disasters and emergencies (CA$ 1.2 billion): forest fires, floods and drought.