Stay informed with the LNN Daily Newsletter
Alberta Finance Minister Nate Horner details the 2024-25 year-end results for the Government of Alberta. (Photo: Government of Alberta)

Alberta ends fiscal year with $8.3B surplus

Jun 27, 2025 | 1:43 PM

The Government of Alberta is reporting a strong end to the 2024-25 fiscal year.

It is posting its fourth consecutive surplus, this time totalling $8.3 billion.

The increase in the surplus is largely due to higher-than-expected resource revenues, corporate and personal income tax revenues, and “impressive” investment income.

Premier Danielle Smith says Alberta’s fiscal strength is not just luck, but the result of disciplined decisions and a clear commitment to responsible government.

“While others reach for higher taxes and more debt, we’re focused on stability, savings and respect for the people who keep Alberta’s economy moving,” says Smith. “That means more security for families, more opportunity for young people, and stronger communities across our province. In uncertain times, Alberta showing this kind of economic leadership is important.”

After calculations and adjustments, there was $5.1 billion in surplus cash. Approximately half of that, or $2.6 billion, will go towards debt repayments or savings through the Alberta Heritage Savings Trust Fund.

Rapid population growth and falling interest rates helped to bolster the provincial economy, which, in turn, led to gains in employment.

That growth, however, added pressure on hospitals, schools and infrastructure, as the province had to spend more money on those areas than expected.

As part of a Canada-wide settlement, a $713 million payment from three major Canadian tobacco companies contributed to the surplus.

A few fiscal highlights include:

Revenue:

Revenues totalled $82.5 billion in 2024-25, about $8.9 billion more than was forecast in Budget 2024, including:

  • $22.0 billion in non-renewable resource revenue, up from $17.3 billion at budget.
    • The increase was primarily driven by higher bitumen royalties due to narrower light-heavy oil price differentials and lower exchange rates.
  • $30.4 billion in tax revenue, $1.7 billion higher than estimated in Budget 2024. This included:
    • $8.1 billion in corporate income tax, $1.1 billion more than at budget, even as the province maintained the lowest corporate income tax rate in the country.
    • A record high of $16.1 billion in personal income tax, $0.5 billion more than estimated in Budget 2024, in large part because of strong growth in personal incomes and Alberta’s growing population.

Expense

Expense in 2024-25 was $74.1 billion, $967 million more than estimated in Budget 2024, including:

  • $29.6 billion in health expense, a 2.9 per cent increase from budget, as the province began refocusing the health system to better meet the needs of patients and families, provide more surgeries, recruit more doctors and provide lab services.
  • $17.2 billion for education, or a 1.1 per cent increase from budget, including:
    • $9.9 billion for K-12 education, with more money to hire more teachers as enrollment increased.
    • $7.2 billion for post-secondary institutions to increase seats in high-demand areas, including apprenticeship training.
  • $1.9 billion for disaster relief and emergency supports.

Debt

The province ended the year with taxpayer-supported debt of $85.2 billion. Total debt-servicing costs were $3.2 billion in 2024-25, down $0.2 billion from budget because of lower-than-expected borrowing requirements.

Oil Prices

  • A barrel of West Texas Intermediate averaged US$74.34 per barrel in 2024-25, slightly higher than the US$74 per barrel forecast in Budget 2024.
  • The light-heavy oil price differential averaged US$13.06 per barrel in 2024-25, $2.94 narrower than estimated in budget, influenced by increased demand for heavier crude and the completion of the TMX expansion project.

Alberta Heritage Savings Trust Fund

  • The province grew the market value of the Heritage Fund to a record high of $27.2 billion as of March 31, 2025. The Heritage Fund grew by $4.2 billion last year, fuelled by $1.9 billion in investment income and $2 billion in surplus cash reinvested from 2023-24. This growth supports Alberta’s bold plan to reach $250 billion by 2050 while diversifying the economy for a stronger future.
  • Through responsible fiscal management, Alberta is building a stable economic foundation and saving for a secure tomorrow. No matter the challenges ahead, Alberta has the resources and resilience to protect its prosperity.

NDP Response

The Alberta NDP says the United Conservative Party is painting a bright, rosy picture of the province’s current situation, but they feel it is not that way.

Court Ellingson, NDP Shadow Minister for Finance, issued the following statement:

“Alberta’s economy is struggling under this UCP government’s watch. Long-term unemployment is rising, youth unemployment is the highest in the country, and too many families are falling further behind.”

“Despite a decent surplus and favourable tailwinds, the UCP government has failed to attract meaningful capital investment or keep pace with Alberta’s growing population and rising inflation. Health care, education, and public safety are falling short of what Albertans need and deserve.”

“At a time when the global economy is becoming more uncertain, the UCP government still has no credible plan to improve affordability or drive sustainable growth. Instead, they create more uncertainty with talk of separatism and time-wasting, do-nothing panels.”

“It is clear that they are bad economic managers and bad for Albertans.”

For local news delivered daily to your email inbox, subscribe for free to the Lethbridge News Now newsletter here. You can also download the Lethbridge News Now mobile app in the Google Play and the Apple App Stores.