According to the Government of Alberta, a growing economy, strong energy prices late in the fiscal year and a commitment to fiscal discipline, yielded a surplus of $3.9 billion for the 2021-22 year end, the first surplus in seven years. The province paid down the provincial debt by $1.3 billion, so Albertans can look forward to a future without ballooning debt servicing costs.
The Alberta Heritage Savings Trust Fund grew to its highest net value in its history – $18.7 billion – earning $1.95 billion in investments to bring the total value of the fund’s investments to $20 billion. With these results, the fund is an even stronger savings account to support future generations and cushion the province from the ups and downs of the market and future volatility in the economy.
“The year-end fiscal report is fantastic news for Albertans and our province – and an opportunity to save resource revenue for future generations and avoid past mistakes that led to today’s debt burden. Sound fiscal management will continue to direct our decision-making for investing and spending to make life better for Albertans and future Albertans.”
The government recorded $68.3 billion in revenue in 2021-22, an increase of $24.6 billion compared with the estimated $43.7 billion at Budget 2021, when the world’s economy was still gripped by the COVID-19 pandemic. Leading up to Budget 2021, West Texas Intermediate crude was trading between US$40 and US$50 per barrel so the province based the budget on an average WTI price of US$46 per barrel. Instead, the average price in 2021-22 was US$77 per barrel, or $31 higher than expected, as economies reopened and demand for energy surged. On the same day the government released its third-quarter fiscal update and forecast a $3.4-billion deficit, Russia invaded Ukraine, sparking wider global unrest that further drove up demand and prices for oil even as supply chains were pinched.
