The Canadian province of Alberta predicts a budget surplus of 12.3 billion Canadian dollars

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dated: 2022-11-24 21:57:52 .

By Nia Williams

(Reuters) – Canada’s top oil-producing province of Alberta on Thursday forecast a budget surplus of C$12.3 billion (US$9.2 billion) for the 2022/23 fiscal year, but warned that economic risks are rising as high inflation, rising interest rates and geopolitical turmoil are slowing global activity.

The estimated surplus is lower than the projected surplus of C$13.2 billion in August, reflecting a slowdown in global oil prices, but still marks a dramatic reversal from past years when Alberta ran a steady deficit.

Alberta’s financial health is closely tied to oil prices, which have skyrocketed this year after Russia’s invasion of Ukraine disrupted global crude flows, and this fiscal year marks the first time since 2014/15. that the province recorded a surplus.

The government expects bitumen royalties to reach C$19.4 billion this year and said non-renewable revenues were the main reason for the surplus.

“This is good news for Albertans because it provides a timely response to the affordability crisis facing many of our families,” Alberta Finance Minister Travis Toews said in a press release.

The province plans to use the surplus to pay down $13.4 billion in debt in the fiscal year ending March 31, 2023, reducing the debt to $79.8 billion.

Premier Danielle Smith also announced this week a C$2.4 billion inflation support package that will provide some Albertans, including seniors and families with children under 18, who earn below a certain threshold, payments of C$600 a month in the next few years in six months.

Alberta’s gross domestic product is expected to grow 4.8% in 2022 and 2.7% in 2023. Estimated surplus for 2023/24. amounts to C$5.6 billion and C$5.3 billion for 2024/25.

($1 = 1.3336 Canadian dollars)

(Reporting by Nia Williams in British Columbia; Editing by Josie Kao)

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The Canadian province of Alberta predicts a budget surplus of 12.3 billion Canadian dollars

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Source https://canadatoday.news/ca/canadas-province-of-alberta-forecasts-a-budget-surplus-of-ca12-3-billion-161344/

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