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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 Premier Danielle Smith addresses a news conference in Calgary, Alta., Wednesday, Feb. 19, 2025.THE CANADIAN PRESS/Jeff McIntosh
View of the downtown city skyline of Edmonton, Alberta, Canada, October 6, 2021. Picture taken October 6, 2021. REUTERS/Todd Korol/File Photo
Canadian Dollar Notes on spreadsheet with Calculator - Calculate profits
Alberta Finance Minister Nate Horner presents the Alberta 2025 budget in Edmonton, on Feb. 27.

Overview

  • 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.