Alberta premier says fiscal restraint the way forward

CALGARY — Alberta Premier Danielle Smith says spending needs to remain in check as her government looks to sock away savings into its rainy-day fund.

She says the government’s long-term revenues increase about three per cent a year. Meanwhile, her government aims to have at least $250 billion in its Heritage Savings Trust Fund — up from the $25 billion it’s forecasting this year — by 2050.

“We can’t spend every single dollar today on today’s needs and wants. We have to start putting money aside so that we’re preparing for what the world might look like in 20 or 30 years,” Smith said Friday.

“I’m just asking everyone, including members of our public service, to accept we’re all in this together, that we want to make sure we have an environment where I can start reducing personal income taxes.”

In the 2024-25 budget introduced Thursday, spending was forecast at $73.2 billion, a 3.9 per cent increase from last year. The government expects a surplus of $367 million.

Resource revenues are expected to make up nearly a quarter of provincial revenues through 2026. Each dollardrop in the benchmark price of oil costs Alberta more than $600 million. The government has forecast the price of West Texas Intermediate crude to average $74 US per barrel.

“I am very concerned about what’s happening with oil and gas prices internationally,” Smith said.

The government is to put $2 billion into its heritage fund out of cash left over from this year but anticipates no payments for the next three years.

Smith said she hopes the fund will grow to a point it can provide a replacement for resource revenues.