As Alberta publishes a $ 3.9 billion surplus for the latest fiscal reports, Treasury Secretary Jason Nixon says Alberts can expect to see “accessibility measures” as an extension of the province’s impeccable finances. The surplus is the final figure based on revenue minus expenses for the financial year 2021-22, which ended on March 31st. Speaking at a news conference at the McDougall Center in Calgary on Tuesday, Nixon said the county had already committed $ 2 billion to alleviate financial challenges, including pumping prices and utility costs. “We consider it an important part of the way we invest some of the resources we were earning from unexpected oil and gas revenues,” Nixon said. He added that the provincial gas tax holiday, which has been extended until September, could be extended for the rest of the year if revenues from non-renewable energy sources continue to be higher than $ 90 a barrel. Nixon said the provincial gas tax holiday, which has been extended until September, could be extended for the rest of the year if revenues from non-renewable energy sources remain high. However, there is no fixed timetable and Nixon said the county will monitor the economic factors leading up to the first quarter before deciding on a further extension. From July, Alberta households and small businesses will receive a $ 50 discount on utility bills for three consecutive months for a total of $ 150, as part of an affordable price measure for Alberts. Nixon also said there were no ongoing plans to reduce welfare checks for Alberts – as previous provincial governments did – to help with rising inflation, gas prices or rising commodities. “I think it’s our job right now to make sure we use these resources strategically to help Alberts deal with these issues right now, especially around inflation and affordability. But to do it in such a way that “We will not create problems for future governments when these oil and gas prices fall again,” Nixon said. He added that excessive government money within the system had partially caused record inflation and said his office was wary of further contributions to inflation.
THE OPPOSITION DEMANDS ACTION
NDP opposition leader Rachel Notley said the measures already announced fall short of helping the Alberts. He praised the UCP for enforcing the gas tax permit and extending it for another three months, but said it was not enough. “There are a number of things they can do, especially focused on low- and middle-income families bearing the brunt of this inflationary crisis,” Notley told reporters Tuesday afternoon. “In the meantime, they have got insurance, tuition, utilities. Their use is a ceiling on utilities. People would not need these discounts if the ceiling still existed,” he said.
RECORD HIGH OIL PRICES
The rise in oil prices from earlier 2022 until today has contributed significantly to the current economic position of the province. The latest fiscal report shows the highest recovery in Alberta history – with $ 16.17 billion in revenue from non-renewable energy, breaking the previous record set in 2005-06 by $ 14.34 billion. “(Alberta is) as steady on the resource revenue train as ever. We need almost a quarter of our total state budget to come from resource revenue,” said Trevor Tomb, a professor of economics at the University of Calgary. Total revenue was $ 68.3 billion, an increase of $ 24.6 billion from the 2021 budget forecast. West Texas Intermediate, the benchmark price for North American oil, has fallen recently, but is above $ 100 a barrel. Tomb said the county is in a strong financial position to consider long-term investment strategies to make the budget more resilient. “I think the most important question for Alberts is what they have in store this year, and we seem to be well on our way to a surplus of more than $ 10 billion next year,” he said.
THE DESIGNS OF THE PROVINCE
While the county is expected to take a restrained approach in the short term, Nixon says work is underway to focus on two priorities: savings and debt repayment. The county has contributed $ 1.5 billion to total debt estimated at over $ 93 million. Nixon also said the county plans to introduce legislation in the fall that will increase the contribution limit set for the Alberta Heritage Fund. At present, the Heritage Fund is worth $ 20 billion, the highest ever. Total revenue was $ 68.3 billion, an increase of $ 24.6 billion from the 2021 budget forecast. Higher energy prices rose $ 13.3 billion in resource revenues and $ 4.4 billion in income taxes. West Texas Intermediate, the benchmark price for North American oil, has fallen recently, but is above $ 100 a barrel. The budget, which ended on March 31, was last projected to run into a $ 3.2 billion deficit. It is the first time in seven years the province’s budget will not bring red ink in the end. The province will release the next quarterly update at the end of August, which will include financial forecasts. Tomb said this would be the most important budget report in Alberta’s recent history. – With files from CTV News’ Tyson Fedor and the Canadian Press
