The last year has been strong for Alberta as it reports a historic investment in savings and debt reductions.
High revenue forecast for bitumen royalties, other resource revenue, and corporate income taxes have increased the province’s forecast surplus to $13.2 billion for 2022-23.
The forecasted $13.2 billion is $12.6 billion higher than what was expected in the 2022 budget.
This year’s surplus enables the government to make the largest single-year debt repayment in Alberta’s history, repaying $13.4 billion in debt that comes due this fiscal year. The government will also allocate $5.2 billion to debt coming due in 2023-24.
The premier of Alberta, Jason Kenney said this about the fiscal year, "Alberta's commitment to fiscal discipline and our unrelenting focus on economic growth has helped bring about an extraordinary turnaround in our financial situation. We promised Albertans we would get our fiscal house in order and that's exactly what we've done. Now, we're paying down debt so future generations won't have to, saving more for a rainy day, and putting more money in Albertans' pockets."
This year will mark the single largest investment in the Heritage Fund, retaining the fund’s remaining 2021-22 net investment income of $1.2 billion and allocating $1.7 billion, for a total investment of $2.9 billion.
What does all of this mean though for the average Albertan?
The basic personal tax amount is rising to $19,814 and will rise again in 2023.
This means that an additional 80,000 to 95,000 Albertans will pay no provincial personal income tax by 2023, on top of the approximately 1.3 million tax filers who already pay no provincial personal income tax due to the rising personal income tax floor.
This will also help the average Albertan as they will receive larger refunds or owe less tax when they file their 2022 tax returns in spring 2023.
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