Alberta Unveils 2024 Budget with Emphasis on Oil and Gas Revenue and Climate Change Preparedness

Alberta‘s Finance Minister Nate Horner presented the province’s 2024-25 budget on Thursday, showcasing more than $70 billion in spending with a surplus close to $400 million.

The budget outlined a forecast for total expenses in Alberta, pointing to a 3.9% increase. It is set to spend $73.2 billion in the upcoming fiscal year, up more than $3 billion from the previous year’s projection.

With Alberta’s debt anticipated to rise to $99.5 billion over the next few years and high interest rates resulting in a debt-servicing cost of $3.4 billion, the budget focuses on an estimated revenue of $73.5 billion, despite a drop of $2.1 billion from prior forecasts.

Anticipating surpluses of $1.44 billion and $2.64 billion in the coming two fiscal years, the budget leans on the average West Texas Intermediate (WTI) oil price to be around US$74 in the next three years.

K-12 education in Alberta will see over $9 billion in spending in 2024-25, with $1.5 billion dedicated to supporting vulnerable students. The capital plan also includes $1.9 billion for new school projects over the next three years.

The health sector receives a significant allocation, with a budget exceeding $26 billion. Funding is detailed for primary care, acute care, mental health, and addiction services.

Calgary and Edmonton will witness infrastructural investments, with LRT projects in Edmonton featuring an $887 million allocation. Notable upgrades to infrastructure include Yellowhead Trail, Terwillegar Drive, and Ray Gibbon Drive.

In terms of natural disaster management and emergencies, Alberta will be preparing with a $2 billion contingency fund, building on this year’s expenditure of $2.9 billion for crisis handling and relief in the agriculture sector.