The upcoming budget in Alberta is set to address record-breaking population growth and manage the strain on provincial services while planning for the future.
The provincial government announced Tuesday that the budget will be unveiled on Feb. 27.
“Alberta is facing headwinds from every direction right now: cross-border trade issues, volatile oil prices and pressure on our public services as more people move here to make Alberta their home,” said Alberta Finance Minister Nate Horner. “I am working with my colleagues to build a budget that builds Alberta and meets the challenge head-on.”
The provincial government said it will have to make prudent decisions to deal with uncertainty in global politics and energy markets.
“The government remains committed to fast-tracking school construction, fair and competitive taxes, and supporting high-quality health care, education and other public services,” reads the release.
Alberta’s 2024 budget forecasted a technical $2.6-billion surplus by 2027, a surplus that was initially overshadowed by the borrowing required.
However, the budget was later updated to show that Alberta would have to borrow just one-fourth of the initially expected funds due to a sevenfold increase in its projected surplus from $367 million to $2.9 billion for 2024-25.
Alberta’s subsequent update revealed the surplus for 2024-25 would actually be $4.6 billion, a staggering 1,150% increase from the initially forecasted value.
The province saw various credit rating updates in 2024 while other provinces, like B.C., saw decreases.
Another way the province has worked to combat the unprecedented population growth was by shattering its housing starts record, which was previously set in 1977. The housing starts contributed to Alberta seeing the cost of renting decelerate the most nationwide.
The province also allocated additional education funding, which it said was necessary due to the population boom.
Between Oct. 1, 2023, and Oct. 1, 2024, Alberta’s population grew by 3.9%, slightly below the 4.1% growth recorded between 2022 and 2023.
The province said that it led the country in population growth as a percentage for five quarters in a row. It also saw nine consecutive quarters of Canada’s highest net interprovincial migration.
However, international migration remained the largest driver of population growth.
True North is planning to attend Alberta’s budget lockup and will report on the 2025 budget.
