Province extends affordability measures amid fiscal year end $3.9B surplus
As Alberta posts a $3.9-billion surplus for the latest fiscal reports, Finance Minister Jason Nixon says Albertans can expect to see "affordability measures" as an extension of the province's flush financial statements.
The surplus amount is the final number based on revenues minus expenses for the 2021-22 fiscal year, which ended on March 31.
During a news conference at the McDougall Centre in Calgary on Tuesday, Nixon said the province has already committed $2 billion targeted to alleviate economic challenges, including the price at the pumps and utility costs.
"We see that as an important part of how we would invest some of the resources that were gaining through the windfall in oil and gas revenues," said Nixon.
He added the provincial gas tax holiday, which has been extended to September, could be extended through the rest of the year if revenues from non-renewable resources continue to be higher than $90 oil.
However, there is no firm timeline and Nixon said the province will watch economic factors heading into the first quarter before deciding a further extension.
Starting in July, Alberta households and small business will see a $50 rebate on utility bills for three consecutive months for a total of $150, as part of an affordability measure for Albertans.
Nixon also said there are not current plans to cut prosperity checks for Albertans – as previous provincial governments have done – to help with ongoing inflation, gas prices or goods increases.
"I think it's incumbent upon us at the moment to make sure that we strategically use these resources to help Albertans through those issues right now, particularly around inflation and affordability. But do it in such a way that we don't create problems for future governments when those oil and gas prices come back down," said Nixon.
He added excessive government money inside the system has partly caused the record inflation, and said his office is wary of further contributing to inflation.
OPPOSITION DEMANDS ACTION
NDP Opposition Leader Rachel Notley said that the measures that have already been announced fall short of providing assistance to Albertans.
She commended the UCP for implementing the gas tax holiday and extending it for an additional three months, but she said it's not enough.
"There's a range of things they can do, specifically focused on low and middle-income families that are bearing the greatest burden of this inflationary crisis," said Notley to reporters on Tuesday afternoon.
"Meanwhile they've jacked up insurance, tuition, utilities. There used to be a cap on utilities. People wouldn't need these rebates if the cap was still there," she said."
RECORD HIGH OIL PRICES
Surging oil prices from earlier in 2022 into present day have contributed greatly to the province's current financial position.
The latest fiscal report shows the highest turnaround in Alberta history – with $16.17-billion in revenues from non-renewable energy resources, smashing the previous record set in 2005-06 with $14.34-billion.
"(Alberta is) as firmly on the resource revenue roller coaster as we have ever been. We need nearly one quarter of our entire government budget to come from resource revenues," said University of Calgary economics professor Trevor Tombe
Total revenue was $68.3-billion an increase of $24.6-billion from the forecast in Budget 2021.
West Texas Intermediate, the benchmark price for North American oil, has softened of late, but sits above US$100 a barrel.
Tombe said the province is in a strong financial position to consider long-term investment strategies to make the budget more resilient.
"I think the more important question for Albertans is, what does this year have in store and it does look like we are on track for a surplus well in excess of $10 billion for the coming year," he said.
THE PROVINCE'S PLANS
While the province is expected to take a reserved approach in the near-term, Nixon says work is underway to focus on two priorities: saving and debt repayment.
The province has contributed $1.5-billion on the total debt-load estimated at upward of $93 billion.
Nixon also said the province plans to introduce legislation in the fall that would increase the contribution limit set for the Alberta Heritage Fund.
Currently, the Heritage Fund is worth $20-billion, the highest it's ever been.
Total revenue was $68.3-billion, an increase of $24.6-billion from the forecast in Budget 2021.
Higher energy prices saw increases of $13.3 billion in resource revenue and $4.4 billion in income taxes.
West Texas Intermediate, the benchmark price for North American oil, has softened of late, but sits above US$100 a barrel.
The budget, which ended on March 31, was last forecast to come in at a $3.2 billion deficit.
It's the first time in seven years the provincial budget will not sport red ink on the bottom line.
The province will release its next quarterly update in late August which will include financial forecasting. Tombe said this is going to be the most significant fiscal report of Alberta's recent history.
- With files from CTV News' Tyson Fedor and The Canadian Press
CTVNews.ca Top Stories
'Nonsense:' Doug Ford slams lawsuits filed by Ontario school boards against social media platforms
Premier Doug Ford says that lawsuits launched by four Ontario school boards against a trio of social media platforms are “nonsense” and risk becoming a distraction to the work that really matters.
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.
Tipping is off the table at this Toronto restaurant
A Toronto restaurant introduced a surprising new rule that reduced the cost of a meal and raised the salaries of staff.
Rainfall warnings of up to 90 mm among weather alerts in effect for 7 provinces
Rainfall warnings of up to 90 millimetres, air quality advisories and other alerts have been issued for seven Canadian provinces, according to the latest forecasts.
Gangs netting up to US$3 trillion a year as Southeast Asia human trafficking becomes a global crisis, Interpol says
Human trafficking-fuelled fraud is exploding in Southeast Asia with organized crime rings raking in close to US$3 trillion in illicit revenue annually, the head of Interpol has said in comments that reveal the huge profits being earned by cartels.
Canada Post’s newest stamp features special cookies for Islamic holiday
Canada Post’s newest specialty stamps feature “melt-in-your-mouth” desserts to mark two Islamic festivals, the crown corporation announced Thursday.
King Charles calls for acts of friendship in first public remarks since Kate's cancer diagnosis
King Charles III gave public remarks for Maundy Thursday, addressing the importance of acts of friendship, following his and Catherine, Princess of Wales’ cancer diagnoses.
A dog and a bird formed an unlikely friendship. Their separation has infuriated followers
Peggy is a stout and muscular Staffordshire bull terrier, and Molly is a magpie, an Australian bird best known for swooping on humans during breeding season, not for befriending dogs. But in an emotional video posted online, Peggy’s owners announced that the animals had been separated.
Statistics Canada reports real GDP up 0.6 per cent in January as Quebec strikes end
Canada's real gross domestic product grew 0.6 per cent in January, helped by the end of public sector strikes in Quebec in November and December, Statistics Canada said Thursday.