Nate Horner, President of Treasury Board and Minister of Finance delivered his first fiscal update in his new position, showing Alberta in a strong fiscal shape.
Alberta ended the fiscal year with an $11.6-billion surplus, exceeding the Budget 2022 projected surplus by $11.1 billion. In 2022-23, the province paid down $13.3 billion in debt, eliminating an estimated $260 million in debt servicing costs annually and reducing the overall debt burden on Albertans.
The province’s strong financial situation also resulted in the market value of the Alberta Heritage Savings Trust Fund growing by $2.5 billion to $21.2 billion. The Heritage Fund’s year-over-year growth was primarily due to actions taken by the Alberta government to retain $1.25 billion in net investment income from 2021-22 and deposit $753 million into the fund.
Growing the Heritage Fund benefits current and future generations of Albertans by ensuring the province is well equipped to handle future uncertainty.
In March of this year, Alberta’s government made legislative changes to ensure the fund continues to grow to support Albertans now and in the future. These changes allow the government to retain all investment income within the Heritage Fund instead of it being transferred to general revenue.
“The 2022-23 year-end report is a very positive one. We promised to keep our economy moving forward and Alberta is reaping the benefits. Albertans can rest easy knowing that Alberta’s prosperity today means more stability tomorrow as we continue to pay down debt and save for the future,” said Horner.
Alberta saw larger growth in its non-renewable resource sector, with $11.4 billion in revenue over 2022 projections. This budget was based on a forecast of $70 per barrel. The price averaged $89.69 over the last fiscal year. It also realized $26.5 billion in tax revenue.
Expenses were $2.4 billion more than estimated in the 2022 budget with increases in spending on healthcare, education, debt servicing and affordability measures.
