Finance Minister Ron Liepert delivered his first and last provincial budget on Thursday and promised Albertans a balanced budget next year.

"This is not a budget where you're going to see deep cuts," said Liepert, as he projected the province will remain $886 million in the red by the end of the fiscal year, returning to a $952 million surplus by 2013/2014.

Documents released on Thursday show Alberta is expected to top $40 billion in earnings for the first time in history, due mainly to high forecasts for oil prices and bitumen royalties.

Spending, however, is slated for $41.1 billion, with operational costs rising by 6.9 per cent.

Critics are expected to attack the government's forecast that Alberta's economic growth will increase by 3.8 percent in 2012, which is well above the national and U.S. average. To achieve this end, the province predicts a barrel of West Texas Intermediate will sell for US$99.25/bbl, up $3 from the 2011/2012 projection and almost $30 from the actual revenue in 2009/2010.

Bitumen royalties are also expected to skyrocket, increasing 30 percent this year for a total of $5.7 billion in revenue, then continuing to grow 32 percent for each of the next two years.

Liepert admits the province needs to get away from its dependence on oil revenue and says a massive review of Alberta's fiscal framework is planned for the coming year.

"Those are good conversations for Albertans to have," said Doug Horner, President of the Treasury Board, when pressed about the issue.

"We acknowledge that we can't continue to have a 6.9 percent operating expenditure increase," added Liepert.

Savings from the Sustainability Fund will be further drained as the province works to get back in the black.

The fund will fall from $7.46 billion in 2011/2012, to an estimated $3.73 billion in 2012/13 and $2.394 billion in 2013/2014.

Spending highlights:

  • $100 million for access to primary health care and mental health services
  • $16 billion to support Health and Wellness, including $10.2 billion to Alberta Health Services for base operating funding for front-line health services
  • $125 million in each of the next three years to support strategic health investments, including family care clinics, additional addictions and mental health services, home care and enhanced rehabilitation programs
  • $1 billion in assistance for prescription drugs, ambulance services, cancer therapy drugs and specialized high cost drugs
  • $740 million for health services including those provided by oral surgeons, optometrists and podiatrists, as well as for vaccination programs and tissue and blood services
  • $2.6 billion for health facilities and equipment over the next three years
  • Calgary South Health Campus, Edmonton Clinic South and Fort Saskatchewan Community Hospital to open this year to improve access to health services in these communities
  • Construction completed or underway over the next three years on health facilities in Fort McMurray, Grande Prairie, High Prairie, Edson, Lethbridge, Medicine Hat, Red Deer and Sherwood Park
  • $400/month increase for AISH recipients 
  • $110 million to decrease homelessness 
  • 90 new RCMP officers and 55 sheriffs by 2013-14 
  • 14 new k-12 schools with $34 million invested in k-12 students 
  • $200 million for student financial assistance 
  • $25 million to increase support for scientific research 
  • $11 million to deliver an environmental monitoring program in the oilsands 
  • $540 million over three years for Green TRIP funding 
  • $24 million to market the province 
  • $750,000 to fund new research greenhouses
  • $21 million initiative will see households qualify for full child care subsidies if total annual income is under $50,000
  • Maximum allowances for daycare are $628 for infants between one-18 months, $546 for toddlers from 19 months-kindergarten and $310 for children in grades one to six
  • Funding for day homes will be $520, $437 and $310, respectively.

Liepert defended the increased spending in a time of ongoing debt, calling this year's budget "positive, realistic and responsible."

Liepert repeatedly stressed decisions were based on nine months of extensive consultation with Albertans from across the province.

He says they collectively identified healthcare, education and infrastructure as key priorities.

Liepert says there will be no new taxes and no tax rate increases and personal income tax credits will be increased to offset inflation.

The minister went on to say that Alberta has the lowest fuel tax among the provinces and that Albertans will continue to enjoy no provincial sales tax.

It was also the last budget for Speaker of the Legislative Assembly, Ken Kowalski who is retiring after this term.

To view Budget 2012, visit the Government of Alberta website.

(With files from ctvedmonton.ca)