Alberta's 2025 Budget Introduces Tax Cuts Amid $5.2 Billion Deficit

The budget includes income tax reductions, increased infrastructure spending, and contingency measures for potential U.S. trade tariffs.

Alberta's 2025 budget projects a $5.2 billion deficit, reversing an $11 billion swing from last year's surplus, due to declining oil revenues and anticipated U.S. tariffs.
The budget introduces an 8% tax bracket for income up to $60,000, saving individuals up to $750 annually, fulfilling a 2023 election promise.
Spending increases include $26 billion for capital projects like schools, hospitals, and highways, alongside $185 million to hire over 4,000 education staff.
Critics argue that health and education funding does not keep pace with population growth and inflation, potentially worsening existing service challenges.
A $4 billion contingency fund has been set aside to address uncertainties, including potential U.S. tariffs, which could significantly impact Alberta's economy.