June 2025

 

The 2024-25 final results were an $8.3 billion surplus, an increase of $8 billion from budget, and an increase of $4 billion from 2023-24.

Budget 2024 was developed as Alberta remained one of the fastest growing province in Canada. It focused on a responsible plan to manage the pressures faced by a growing province while securing Alberta’s future by supporting health care and education, reinvigorating the Alberta Heritage Savings Trust Fund (Heritage Fund), and managing the fiscal planning challenges arising from the province’s unique economic and revenue volatility.

Budget 2024 upheld the requirements of the fiscal framework to balance the budget, control spending and use surplus cash to improve the province’s net financial position or invest in areas and services important to Albertans. The Heritage Fund net financial assets grew by $4.3 billion from $22.9 billion at March 31, 2024 to $27.2 billion at March 31, 2025.

Revenue in 2024-25 was higher than budget, driven by solid gains in Alberta’s labour market underpinned by robust growth in Alberta’s population, higher non-renewable resource revenue driven by strong global benchmark crude oil prices, a lower exchange rate and narrower light-heavy differentials. Expense increases in 2024-25 were mainly for health care, education, and disaster and emergency spending.

Total Revenue was $82.5 billion, $8.9 billion more than budget and $7.7 billion more than 2023-24.

 

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Change from Budget. Changes include increases of $4.7 billion in non-renewable resource revenue (NRR), $1.7 billion in tax revenue, $1.5 billion in investment income, $1.1 billion in premiums, fees and licences and other revenue, and a decrease of $0.1 billion in net income from government business enterprise (GBE).

 

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Change from 2023-24. Comprises increases of $3.6 billion in tax revenue, $2.7 billion in NRR,

$0.8 billion in net income from GBEs, $0.6 billion in investment income, federal government transfers, premiums, fees and licences and other revenue.

Total Expense was $74.1 billion, $3.7 billion more than 2023-24 and up $1 billion from budget. Budget 2024 included $2 billion expense contingency.

 

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Change from Budget. Increases of $1.9 billion in operating expense, and $1.9 billion in disaster assistance, offset by decreases of $0.8 billion in debt servicing, capital grants, pension and other expenses, netted against the $2 billion contingency.

 

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Change from 2023-24. Increases of $3.9 billion in operating expense, $0.9 billion of capital grants, debt servicing, pension and other expense, and a decrease of $1.1 billion in disaster assistance.

 

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Capital Plan. Total Capital Plan spending in 2024-25 was $7.2 billion, $1.1 billion below budget and up $0.9 billion from the prior year.

 

 

Total Revenue

 

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Total revenue was $82.5 billion in 2024-25, an increase of $8.9 billion from Budget 2024 and an increase of $7.7 billion from 2023-24. The increase from budget was primarily due to higher non-renewable resource revenue (NRR), investment income, and income tax revenue.

 

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Revenue was $1.8 billion higher than the third quarter forecast. Changes included:

 

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Income and other tax revenue, including related interest and penalties, was $0.9 billion higher due to strong corporate profits, particularly in the oil and gas extraction, construction, finance, and insurance sectors.

 

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Federal transfers decreased by a net $0.3 billion, due to slower construction progress under the federal Investing in Canada Infrastructure Program for the Calgary and Edmonton LRT programs and lower than anticipated utilization of funding for the Working Together to Improve Health Care for Canadians. The Ministry will engage with the federal government to carry forward the unused funding from previous years.

 

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Investment income decreased by $0.4 billion due to revisions in long

term capital market assumptions provided by AIMCo.

 

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Other revenue increased by a net $1.6 billion primarily due to the settlement agreement from litigation against three tobacco companies under the Companies’ Creditors Arrangement Act, increased ancillary services revenue from post-secondary institutions driven by growth in student population, and higher than expected endowment contributions and re-invested income.

Non-Renewable Resource Revenue

 

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NRR was $22 billion in 2024-25, an increase of $4.7 billion from Budget 2024 and an increase of $2.7 billion from 2023-24.The increase was primarily driven by higher bitumen royalties due to lower exchange rates and narrower light-heavy differentials, and lower cost due to lower natural gas prices.

 

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The West Texas Intermediate (WTI) oil price averaged US$74.34 per barrel (/ bbl) in 2024-25, $0.34 more than estimated in Budget 2024, but $3.49 lower than in 2023-24. Total crude oil production was up 9.3 per cent from budget.

 

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The light-heavy oil price differential averaged US$13.06/bbl. This was $0.14 narrower than budget and $4.23 narrower than 2023-24,

influenced by an increased demand for heavier crude and the additional egress capacity from the completion of TMX.

 

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The US-Canadian dollar exchange rate averaged US¢72/ Cdn$ in 2024-25, four cents lower than estimated in budget and two cents lower than the 2023-24 average. Since oil is priced in US dollars, a lower exchange rate will increase the Canadian dollar revenue.

 

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Natural gas prices were also lower: The Alberta Reference Price (ARP) averaged Cdn$1.11 per gigajoule in 2024-25, $0.07 below budget and $0.94 below 2023-24. The decrease in natural gas revenues was driven by lower than budgeted gas prices.

 

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Bitumen royalties were $17.2 billion, $4.6 billion more than budget and $2.6 billion higher than in 2023-24. Conventional crude oil royalties were $3 billion in 2024-25, $0.3 billion higher than budget and very close to 2023-24. Bitumen and conventional oil production volumes rose by 37 per cent and 10 per cent from budget, respectively.

 

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Natural gas and by-product royalties were $1.2 billion, up $0.2 billion from 2023-24 and down $0.2 from budget, following the fluctuations in oil and gas prices.

 

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Crown land lease sales slightly increased by $0.1 billion from budget and decreased by $0.1 billion from

 

 

 

Total expense was $74.1 billion in 2024-25, comprising $62 billion in operating expense, $2.9 billion in capital grants, $1.9 billion in disaster assistance, $4.1 billion in other expense (including increases of $11 million in amortization and $12 million in inventory consumption, and a decrease of $265 million in loss on disposal and pension), and $3.2 billion in debt servicing costs.

Budget-to-actual changes. Expense was $1 billion higher than budget, net of the $2 billion contingency:

 

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Operating expense. $1.9 billion increase primarily from the increased demands on education, health and social services due to population growth and ongoing litigation claims.

 

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Capital grants. $0.5 billion decrease primarily due to slower progress on municipal transportation and infrastructure projects and re-profiling projects to future years.

 

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Disaster assistance. $1.9 billion increase from budget primarily attributed to increased Wildfire Presuppression and Response and from higher indemnity payouts and agriculture program participation, driven by decreases in commodity prices and increased activity in hail and wildlife damage compensation programs as a result of dry conditions.

 

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Other expense. $0.3 billion decrease primarily due to lower-than-expected borrowing requirements as a result of the higher surplus, and inventory consumption.

Year-over-year comparison. Expense was $3.7 billion higher than 2023-24:

 

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Operating expense. $3.9 billion net increase primarily from pressures on education, health and social services due to population growth.

 

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Capital grants. $0.9 billion mainly from the new Local Government Fiscal Framework (LGFF) capital program, which replaced the Municipal Sustainability Initiative Capital program in 2024-25. The LGFF amount was set at $722 million for 2024-25.

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Disaster assistance. $1.1 billion decrease compared to 2023-24 primarily due to the unprecedented wildfire season in 2023-24 and due to lower agriculture support program payments to producers as a result of drought conditions in 2023-24.

 

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Other expense. No significant year-over-year changes, with a capital amortization increase due to more capital projects, partially offset by a decrease of inventory consumption and a reduction to pension liabilities.

Third Quarter forecast-to-actual changes. Expense was $783 million lower than the third quarter forecast. Operating expense was $73 million higher mainly from ongoing litigation claims and $360 million lower capital grants mostly for the Calgary and Edmonton LRT projects and municipal infrastructure projects.

Ministry Expense

Total expense includes operating (shown by ministry in facing table), as well as other types of expense (e.g. capital grants, amortization, loss on disposal), for which only major ministries are individually displayed in the table. The remainder are grouped into “Other.”

Health

Total expense of $27.6 billion, includes $25.7 billion in operating expense and $1.9 billion in other expense. This was approximately $1 billion higher than budget and $1.8 billion higher than 2023-24.

 

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The increase from Budget 2024 is due to increases in physician volume, clinical activity, benefit utilization driven by aging population and higher cost of medication, partially offset by delays implementing priority initiatives.

 

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Increases from 2023-24 include increases in physician volume, clinical activity and emergency room visits, and other increased expenses as a result of higher volume in the system.

Education

Total expense was $9.9 billion, up $474 million from 2023-24 and $108 million from budget.

 

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The change from budget is comprised of an increase in operating expense from higher instruction expense due to increased enrolment and amortization.

 

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The increase from 2023-24 comprises higher operating expense, primarily from increased enrolment which resulted in increased costs for teachers and instruction support staff, and increased amortization due to more tangible capital assets and capital projects going into service for schools.

Advanced Education

Total expense was $7.2 billion, an increase of $148 million from budget and $369 million from 2023-24. The increase was primarily research-related expenses and program expansion costs due to enrolment growth.

Seniors, Community and Social Services

Expense was $5.9 billion, similar to budget and $370 million higher than 2023-24. The increase was primarily due to rising caseloads and related program costs, homelessness task force priorities and Navigation and Support Centres operations, as well as higher capital grants for continuing care and independent housing projects, partially offset by reduced spending in Indigenous and affordable housing due to project re-profiling and unspent affordable housing strategy funding.

Children and Family Services

Expense was $1.5 billion, up $17 million from budget, but $92 million lower than 2023-24. The decrease from 2023-24 was primarily due to lower demand for the Affordability Support Payments program, which ended in June 2023, partially offset by increased spending in facility placements and hiring due to recruitment strategies to attract and maintain staff.

 

 

 

Public Safety and Emergency Services

Expense was $1.4 billion, a $167 million increase from budget but a $48 million decrease from 2023-24. The increase from budget is due to an increase in Alberta Emergency Management Agency (AEMA) mainly for the 2024 Jasper and other wildfires and for police support grants provided to Calgary and Edmonton. The decrease from 2023-24 is mainly the result of lower disaster recovery program operating grants following the 2023 summer floods and wildfires, which was partially offset by increases in transit safety and police services grants, expansion of the Sheriff Branch and electronic monitoring.

Energy and Minerals

Total expense was $1.4 billion, an increase of $356 million from budget and $435 million from 2023-24. The increase from both budget and 2023-24 were primarily related to settlement of litigation claims and Cost of Selling Oil. Capital grants were higher compared to 2023-24 as a result of a payment for Inter Pipeline’s Petrochemical Complex project under the Alberta Petrochemicals Incentive Program and lower in 2024-25 as a result of lower spending on carbon capture and storage projects.

Other Ministries

Total expense for other ministries was $19.2 billion in 2024-25, $0.8 billion lower than estimated in Budget 2024 and $0.4 billion higher than 2023-24.

Changes from budget include:

 

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Agriculture and Irrigation expense was $995 million higher mainly due to higher than anticipated indemnities and rise in program participation.

 

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Environment and Protected Areas was $109 million lower, primarily the result of the revised lower TIER revenue forecast and lower related spending.

 

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Forestry and Parks increased $671 million mainly for Wildfire Presuppression and Response expense during the 2024 wildfire season.

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Transportation and Economic Corridors expense was $208 million lower primarily due to slower than anticipated construction progress by municipalities on several projects, including Edmonton and Calgary LRTs.

 

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Infrastructure was $39 million higher than budget mostly due to the disposal of land inventory in Parsons Creek as part of the Land Exchange Agreement settlement with the Regional Municipality of Wood Buffalo.

 

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Technology and Innovation was $50 million lower than budget mostly due to reprofiling capital grants to future years.

 

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Treasury Board and Finance expense was $160 million lower due to debt servicing costs as a result of lower-than-expected borrowing requirements from the higher surplus than what was projected in Budget 2024.

 

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Expense in other ministries was a net of $11 million higher than budget.

Changes from 2023-24 include:

 

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Agriculture and Irrigation expense was $659 million lower primarily due to decreases in hail and moisture deficiency claims and in Agriculture income support payments.

 

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Jobs, Economy and Trade was up $302 million from increased spending for child care affordability and access, and child care quality and worker support initiatives.

 

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Mental Health and Addiction expense increased $142 million primarily due to increased costs related to collective bargaining, population growth, and re-profiling of Indigenous Recovery Community capital grants from 2023-24.

 

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Municipal Affairs expense increased $299 million primarily due to the new LGFF capital program.

 

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Transportation and Economic Corridors expense was $310 million higher primarily due to progress on capital grant projects of capital assets.

 

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Forestry and Parks expense was $85 million lower primarily due to lower disaster and emergency assistance required in 2024-25

compared to 2023-24. Although the 2024 wildfires season was more active than average, the area burned was below the record-breaking level in 2023-24.

 

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Infrastructure expense was $62 million higher mainly due to the disposal of land inventory in Parsons Creek as part of the Land Exchange Agreement settlement with the Regional Municipality of Wood Buffalo.

 

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Treasury Board and Finance expense was $64 million lower as a result of a large provision related to the accounting allowance for the a loan made under the Local Authorities Capital Financial Act.

 

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Technology and Innovation expense was up $70 million primarily due to higher spending on various information technology related initiatives.

 

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Expense in other ministries was a net $55 million higher than 2023-24.

Pension Recovery

 

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Public sector pension plan liabilities decreased by $0.4 billion to $7.5 billion at March 31, 2025.

 

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Liabilities for pre-1992 and other closed plan obligations account for 98 per cent of the liability, with the pre-1992 Teachers’ pension plan accounting for 89 per cent.

Pension Liabilities

Government obligations for pension plan liabilities (millions of dollars)

 

(at March 31)		2025				2024
Teachers’ (pre-1992)			6,696				7,030
PS Mgmt. (pre-1992)			335				347
Univ. Acad. (pre-1992)			203				196
Spec. Forces (pre-1992)			61				64
MLA (Closed)			30				32
Universities Academic			70				128
Teachers’ (post-1992)			-				-
Supp. Exec. Retir. Plans			85				82
PS Mgmt. (Supp.)			24				24
Prov. Judges / Masters			-				1
Total Pension Liab.			7,504				7,904

 

 

The Sustainable Fiscal Planning and Reporting Act includes a no deficit rule. In 2024-25 the government is reporting a surplus of $8.3 billion.

The framework also limits in-year expense increases, adjusted to exclude expense that is directly offset by a related increase to revenue and non-cash, non-recurring adjustments, to the voted, budgeted contingency.

In 2024-25, the contingency was set at $2 billion. In 2024-25, total expense exceeded budget by $1 billion. Of this increase, $2 billion was offset by the contingency. The remaining increase was mainly in disaster and emergency assistance expense relating to drought and wildfires in 2024 and expense related to dedicated revenue. The fiscal framework provides allowable exceptions for the in-year expense limitation, including exceptions for disasters and emergencies and dedicated-revenue expense.

Surplus cash and Alberta Fund.

The fiscal framework requires the allocation of surplus cash, with the first 50 per cent going to repay maturing debt or to the Alberta Heritage Savings Trust Fund to improve the province’s net financial position and the remaining 50 per cent allocated to the Alberta Fund. There are three allowable uses of cash from the Alberta Fund: further debt repayment, savings in the Alberta Heritage Savings Trust Fund or for one-time initiatives that do not permanently increase government spending.

Surplus cash at March 31, 2025 of $5.1 billion is comprised of $3.7 billion of surplus cash from 2023-24 results, plus the $8.3 billion surplus, less $4.9 billion in cash requirements and adjustments. Preliminary allocations of surplus cash from 2024-25 results include $2.6 billion to improve the government’s net financial position either through debt repayment or deposits into the Heritage Fund and $2.6 billion to the Alberta Fund. These allocations are preliminary and may change as the 2025-26 fiscal year unfolds.

 

As stated in Budget 2024, the government transferred $2 billion from the 2023-24 Alberta Fund allocation into the Heritage Fund to support the long-term plan to grow the size of the fund.

Cash adjustments such as differences between accrued revenue and cash receipts, non-cash revenue or expense, SUCH sector (schools, universities, colleges and health entities) and entity results, and transfers not reported on the income statement, are necessary to determine the cash balance. The list of cash adjustments are included on page 10 of this report.

 

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Net income of, or retained by, other entities.

 

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Positive adjustments include: APMC had a net loss of $0.6 billion from Sturgeon Refinery Processing Agreement primarily as a result of higher feedstock costs such as crude oil, and $0.1 billion as the Agriculture Financial Services Corporation (AFSC) funded indemnity payments from the crop fund and underutilized Affordable Housing Strategy funding in the Alberta Social Housing Corporation.

 

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Negative adjustments include: $1.9 billion of net income was retained in the Alberta Heritage Savings Trust Fund; $0.3 billion of net income was retained in the endowment funds; $0.3 billion of net income was retained by ATB Financial; and $0.1 billion of net income was retained by the TIER Fund.

 

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Other cash adjustments.

 

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Non-cash expense: An adjustment is required to remove the impact of SUCH related revenues and expenses as these are reported in the government’s consolidated reporting entity but are funded using the entity’s cash, a net adjustment of $0.3 billion in 2024-25. Inventory consumption of $0.2 billion is an accounting adjustment and does not require

cash. $0.4 billion adjustment for pension recovery is added back to cash balance as it is also non-cash.

 

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Cash requirements not in expense: $0.3 billion for student loans, net of repayments and default provision; $205 million for short-term inventory acquisition.

 

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Revenue and other cash adjustments: non-renewable resource revenue reported was $0.6 billion less than cash received, income tax revenue reported was $0.5 billion less than cash received. $83 million is still outstanding in Federal Government transfers for disaster recovery assistance, 2016 Wood Buffalo wildfire, 2024 Jasper Wildfires and other disasters where spending incurred in prior years. Cash transfers for capital, reported in revenue over the related asset’s life, exceeded non-cash reported revenue by $4 million.

 

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Capital Plan cash. Cash for capital investment and P3 principal repayments of $3.5 billion was slightly offset by the $4 million from P3 partners and $1.3 billion in non-cash amortization.

ATB Financial paid quarterly dividends totaling $0.1 billion to the province in 2024-25.

 

 

 

At March 31, 2025, the province’s assets exceeded liabilities by $24.5 billion.

This was a $8.3 billion improvement relative to March 31, 2024, due to an increase of $11 billion in financial assets, an increase of $1.4 billion in capital / non-financial assets, netted against a reduction of $4 billion in liabilities. Main changes in financial assets and liabilities include:

 

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The $11 billion increase in financial assets mainly consists of $8.7 billion in the Heritage Fund, endowment funds, debt retirement account, Alberta Fund, and TIER Fund, primarily from income retention; $3 billion in other financial assets; offset by decreases of $0.5 billion in student loans and loans to local authorities, $0.1 billion in net assets of GBEs and $46 million in loans to AFSC.

 

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The $4 billion increase in liabilities comprised of a $2.9 billion increase in debt, mainly reflecting advanced borrowing due to the pre-funding plan offset by the taxpayer-supported debt repayment; $1.5 billion increase in asset retirement obligation and other liabilities; offset by $0.5 billion reduction in pension and coal phase-out liabilities.

Financial assets

$97.9 billion at March 31, 2025.

Heritage Fund. $24.8 billion book value. This was a $3.9 billion increase from March 31, 2024, from retaining 100 per cent of its net income and a $2 billion deposit from the Alberta Fund.

Endowment and other funds. $5.6 billion, a $0.3 billion increase from March 31, 2024. This is also due to retaining their net income for the year.

Debt retirement account/Alberta Fund. Balance of $10 billion in the debt retirement account, an increase of $5 billion from March 31, 2024. This cash was set aside to retire upcoming maturing debt. In addition, $2.6 billion has been allocated to the Alberta Fund

in 2024-25.

Self-supporting lending activities. $16.7 billion in assets of AFSC and local authority loans. These assets fully offset the related liabilities.

Equity / (deficit) in commercial enterprises. $0.7 billion, comprising equity of $5.7 billion in ATB Financial, $0.5 billion in Credit Union Deposit Guarantee Corporation, $0.3 billion in Alberta Gaming, Liquor and Cannabis Commission, less deficits of $5.3 billion in APMC and $0.3 billion in the Balancing Pool.

Student loans. $4.9 billion, an increase of $296 million from March 31, 2024, comprising $0.9 billion in loans disbursed less $458 million in repayments and a $147 million in loan default loss provision and other adjustments.

Technology Innovation and Emissions Reduction Fund. $1.1 billion, a $89 million increase from March 31, 2024 as TIER revenue exceeded spending allocations.

Other financial assets. $29 billion, a $3 billion increase from the prior year. These assets include financial assets of school boards, universities and colleges and the health authorities, accounts and interest receivable, natural gas royalty deposits, cash associated with future liabilities such as corporate income tax refunds and derivative financial instruments.

Liabilities

$132.3 billion at March 31, 2025, including debt of $102 billion, alternative financing (public-private partnerships) of $2.5 billion, coal phase- out liabilities of $0.6 billion, pension liabilities of $7.5 billion, $2.6 billion for asset retirement obligations and other liabilities of $19.1 billion.

Liabilities for capital projects. $50.6 billion, a $3 billion increase from March 31, 2024. P3 projects added $4 million in liabilities, less $74 million in repayments.

Fiscal plan borrowing. $34.7 billion,

an increase of $424 million due to the financial restructuring of the pre-1992 Teachers’ Pension Plan.

Self-supporting lending activities. $17.3 billion, consisting of $13.8 billion in debt incurred to provide loans to local authorities and $3.4 billion in AFSC to on-lend to the agriculture sector.

Coal phase-out liabilities. $0.6 billion, $50 million lower than 2023-24, reflecting the net present value of $93 million in annual payments to be made to generators for phasing-out coal use by 2030.

Pension liabilities. $7.5 billion, a decrease of $400 million.

Asset retirement obligations. $2.6 billion, a $188 million increase from 2023-24. The government’s adoption of the Asset Retirement Obligation standard requires recognition of future disposal costs of certain capital assets that need remediation or decommissioning work.

Other liabilities. $19.1 billion. Includes liabilities of school boards, universities and colleges and the health authority, natural gas royalty and security deposits, unearned revenue, estimated corporate income tax refunds, trade payables, other liabilities of AFSC, and derivative financial instruments.

Capital / Non-financial Assets

$63 billion at March 31, 2025. $61.7 billion in capital assets include land, land improvements, buildings, computer hardware and software, equipment, provincial highways, bridges, dams and other water management infrastructure.

Capital assets increased $1.3 billion: $3.9 billion in capital investment less $2.6 billion in amortization, disposals, and accounting adjustments.

Total Capital Plan spending in 2024-25 of $7.2 billion ($4.3 billion investment plus $2.9 billion in grants) was financed from a variety of sources: $5.8 billion from the general revenue fund; $0.8 billion in federal funding, donations and other sources;

 

 

$0.9 billion provided by school boards, post-secondary institutions and AHS; and $55 million from cash of agencies and funds (e.g. Alberta Social Housing Corporation and TIER), and public-private partnerships.

Other non-financial assets include $0.4 billion in inventory assets, $0.6 billion in prepaid expenses, and

$0.2 billion in purchased intangibles. Inventory acquisition was less than consumption / write-downs by $19 million, while prepaid expenses increased by $84 million and purchased intangibles increased by $8 million.

Spent Deferred Capital Contributions

$4.1 billion at March 31, 2025.

Spent deferred capital contributions increased $0.1 billion, reflecting the use of $0.3 billion in cash received for capital that has not yet been reported in revenue, less $0.2 billion in cash previously received and spent, and now being recognized in 2024-25 revenue.

 

 

Economic highlights

(Calendar Year Basis)

Alberta’s economy expanded at a solid pace in 2024, supported by increased pipeline capacity, rapid population growth and falling interest rates. Real gross domestic product (GDP) rose an estimated 2.7% last year, an acceleration from the 2.3% growth recorded in 2023.

The energy sector led the growth in business activity and output. With activity ramping up in the second half, rigs drilling advanced 4.4% in 2024. Annual crude oil production also climbed to a record high of almost four million barrels per day, while natural gas output increased despite weaker prices. Outside the energy sector, business output was slow to gain momentum, weighed down by declines in primary agriculture and manufacturing sectors. Meanwhile, major industrial projects led the increase in non-residential construction investment, although engineering construction and machinery and equipment spending saw more muted growth.

Alberta’s population expanded at an exceptionally strong pace in 2024, although momentum cooled later in the year. It grew by 4.4 per cent year-over-year (y/y) in the 2024 census year, the fastest rate since 1981. However, changes to federal immigration policy slowed the net inflows of temporary residents in the

latter half of the year. This moderated the population growth to 3.5 per cent y/y in the fourth quarter. Nonetheless, Alberta remained the fastest growing province in Canada.

Labour market conditions softened in 2024. After a sluggish start, employment growth accelerated in the second half of the year, with the province adding 76,300 jobs in 2024. While job gains have been exceptionally strong, they lagged behind the rapid expansion in the labour force. This pushed the unemployment rate up to average 7.0 per cent. With layoffs muted, the increase in unemployment was concentrated among new labour market entrants.

Consumer inflation moderated further to 2.9 per cent last year as price pressures eased across a broad range of categories. Rapid population growth put pressure on shelter costs, although the pace of increase moderated throughout the year as interest rates fell and strong residential construction activity brought more supply into the market. Meanwhile, easing inflation and falling interest rates provided some relief to households in 2024.

Tax highlights

Alberta maintained an overall tax advantage compared to all other provinces, with low personal income taxes and no sales tax, payroll tax or health premium. In 2024-25, Albertans

and Alberta businesses would have paid at least $19 billion more in taxes if Alberta had the same tax system as any other province.

As announced in Budget 2025, government is adding to this tax advantage by cutting personal income taxes with a new eight per cent tax bracket that applies on the first $60,000 of income, effective January 1, 2025. The new tax bracket will save individuals up to $750 in 2025.

As of February 13, 2025, a $200 annual tax on battery electric vehicles came into effect. This tax ensures that all drivers contribute to the tax revenue that funds the programs and services that Albertans rely on.

To address the growing issue of contraband tobacco, government established a cross-ministry working group to assess its prevalence and recommend solutions. In Budget 2025, government announced four measures to address contraband tobacco in the province: strengthen enforcement, introduction of new administrative penalties, improve coordination, and advocate for stronger federal action.

Alberta introduced a provincial vaping tax effective January 1, 2025. The tax is collected by the federal government on Alberta’s behalf and is intended to discourage vaping, particularly among youth.