Alberta budget back in the black as oil prices drive $500M surplus

The province is now reporting a $500 million surplus for the upcoming fiscal year, and surpluses of $900 million and $700 million projected for the two years to come.

Alberta’s new budget revealed on Thursday balances the province’s books for just the second time since 2007-08 as high oil prices and reduced spending return the province’s finances into the black.

The provincial deficit, estimated as recently as November to be around $5.8 billion, is now eliminated.

The province is now reporting a $500 million surplus for the upcoming fiscal year, and surpluses of $900 million and $700 million projected for the two years to come.

“Alberta is moving forward once again,” said Finance Minister Travis Toews. “Budget 2022 makes targeted investments to give Albertans the tools we need to move forward toward a prosperous and sustainable future.”

The last time the province’s books were balanced was in 2014-15.

Alberta’s debt will hit $97.7 billion by March 31, about $18 billion lower than projected, and is expected to shrink by a further $3 billion by the end of the next fiscal year.

Debt servicing costs are tabbed at $2.7 billion for the next year.