Alberta cuts budget surplus forecast after tax break rollout
BNN Bloomberg
Alberta lowered its budget surplus forecast by almost $1 billion (US$750 million) after rolling out a series of tax breaks and social benefits to help residents of the oil-rich province deal with higher prices.
The province’s surplus will total $12.3 billion in the current fiscal year that ends in March, down from $13.2 billion estimated in August, the government said in its midyear fiscal update.
The smaller surplus reflects a $2.5 billion increase in expenses, including a $1.3 provision to cover inflation measures announced by Premier Danielle Smith on Tuesday. These include a six-month suspension of the provincial fuel tax, support for parents and other relief benefits.
The measures will also result in expense provisions totaling $1.2 billion in the fiscal 2023-24 budget and $300 million in the 2024-25 budget.
