Alberta To Use 13 Billion Oil Fueled Surplus To Cut Record Debt

The province will pay down $13.4 billion in debt in the year ending in March and set aside $5.2 billion for debt that ends in the next fiscal year, the government said Wednesday. Taxpayer-backed debt is projected to fall to $79.8 billion by March 31, $10.4 billion less than originally estimated in the current budget. Alberta, which holds the world’s third-largest oil reserves, is reaping a fiscal windfall from oil prices that jumped as high as US$130 a barrel after Russia’s invasion of Ukraine. The new projected surplus is 25 times larger than the originally projected surplus of $515 million and marks a reversal of fortune for Alberta, which posted a $17 billion deficit in the fiscal year ending March 2021 amid depressed oil prices and falling investment in energy. The province’s revenue in the current fiscal year is projected to reach $75.9 billion, which includes $20.1 billion in tar sands royalties and a record $6.1 billion in corporate income taxes. Spending will total $62.7 billion. The budget assumes West Texas Intermediate oil will average US$92.50 a barrel for the year, US$22.50 higher than originally forecast. Rising prices will boost oil and gas investment by about 35 percent this year, mostly reflecting higher costs. Real spending growth in the industry may be “moderate” as companies repair their balance sheets. About 30 to 40 percent of cash flow is reinvested by energy companies. Other highlights from the budget update include:

The basic amount of personal tax will rise to $19,814 in the current tax year and rise again next year as these contributions are again adjusted for inflation. An additional 80,000 to 95,000 Albertans will pay no provincial personal income tax by 2023. The government plans to make the largest one-year addition to the province’s Heritage Savings Trust Fund by keeping the fund’s $1.2 billion in net investment income from this year and investing $1.7 billion of the surplus. Alberta’s population will grow by 2 per cent in the 2022 census year, accelerating from a 0.5 per cent increase in 2021.

title: “Alberta To Use 13 Billion Oil Fueled Surplus To Cut Record Debt Klmat” ShowToc: true date: “2022-12-07” author: “Mark Nelson”

The province will pay down $13.4 billion in debt in the year ending in March and set aside $5.2 billion for debt that ends in the next fiscal year, the government said Wednesday. Taxpayer-backed debt is projected to fall to $79.8 billion by March 31, $10.4 billion less than originally estimated in the current budget. Alberta, which holds the world’s third-largest oil reserves, is reaping a fiscal windfall from oil prices that jumped as high as US$130 a barrel after Russia’s invasion of Ukraine. The new projected surplus is 25 times larger than the originally projected surplus of $515 million and marks a reversal of fortune for Alberta, which posted a $17 billion deficit in the fiscal year ending March 2021 amid depressed oil prices and falling investment in energy. The province’s revenue in the current fiscal year is projected to reach $75.9 billion, which includes $20.1 billion in tar sands royalties and a record $6.1 billion in corporate income taxes. Spending will total $62.7 billion. The budget assumes West Texas Intermediate oil will average US$92.50 a barrel for the year, US$22.50 higher than originally forecast. Rising prices will boost oil and gas investment by about 35 percent this year, mostly reflecting higher costs. Real spending growth in the industry may be “moderate” as companies repair their balance sheets. About 30 to 40 percent of cash flow is reinvested by energy companies. Other highlights from the budget update include:

The basic amount of personal tax will rise to $19,814 in the current tax year and rise again next year as these contributions are again adjusted for inflation. An additional 80,000 to 95,000 Albertans will pay no provincial personal income tax by 2023. The government plans to make the largest one-year addition to the province’s Heritage Savings Trust Fund by keeping the fund’s $1.2 billion in net investment income from this year and investing $1.7 billion of the surplus. Alberta’s population will grow by 2 per cent in the 2022 census year, accelerating from a 0.5 per cent increase in 2021.

title: “Alberta To Use 13 Billion Oil Fueled Surplus To Cut Record Debt Klmat” ShowToc: true date: “2022-11-07” author: “Cara Ernst”

The province will pay down $13.4 billion in debt in the year ending in March and set aside $5.2 billion for debt that ends in the next fiscal year, the government said Wednesday. Taxpayer-backed debt is projected to fall to $79.8 billion by March 31, $10.4 billion less than originally estimated in the current budget. Alberta, which holds the world’s third-largest oil reserves, is reaping a fiscal windfall from oil prices that jumped as high as US$130 a barrel after Russia’s invasion of Ukraine. The new projected surplus is 25 times larger than the originally projected surplus of $515 million and marks a reversal of fortune for Alberta, which posted a $17 billion deficit in the fiscal year ending March 2021 amid depressed oil prices and falling investment in energy. The province’s revenue in the current fiscal year is projected to reach $75.9 billion, which includes $20.1 billion in tar sands royalties and a record $6.1 billion in corporate income taxes. Spending will total $62.7 billion. The budget assumes West Texas Intermediate oil will average US$92.50 a barrel for the year, US$22.50 higher than originally forecast. Rising prices will boost oil and gas investment by about 35 percent this year, mostly reflecting higher costs. Real spending growth in the industry may be “moderate” as companies repair their balance sheets. About 30 to 40 percent of cash flow is reinvested by energy companies. Other highlights from the budget update include:

The basic amount of personal tax will rise to $19,814 in the current tax year and rise again next year as these contributions are again adjusted for inflation. An additional 80,000 to 95,000 Albertans will pay no provincial personal income tax by 2023. The government plans to make the largest one-year addition to the province’s Heritage Savings Trust Fund by keeping the fund’s $1.2 billion in net investment income from this year and investing $1.7 billion of the surplus. Alberta’s population will grow by 2 per cent in the 2022 census year, accelerating from a 0.5 per cent increase in 2021.

title: “Alberta To Use 13 Billion Oil Fueled Surplus To Cut Record Debt Klmat” ShowToc: true date: “2022-11-09” author: “Sandra Sirles”

The province will pay down $13.4 billion in debt in the year ending in March and set aside $5.2 billion for debt that ends in the next fiscal year, the government said Wednesday. Taxpayer-backed debt is projected to fall to $79.8 billion by March 31, $10.4 billion less than originally estimated in the current budget. Alberta, which holds the world’s third-largest oil reserves, is reaping a fiscal windfall from oil prices that jumped as high as US$130 a barrel after Russia’s invasion of Ukraine. The new projected surplus is 25 times larger than the originally projected surplus of $515 million and marks a reversal of fortune for Alberta, which posted a $17 billion deficit in the fiscal year ending March 2021 amid depressed oil prices and falling investment in energy. The province’s revenue in the current fiscal year is projected to reach $75.9 billion, which includes $20.1 billion in tar sands royalties and a record $6.1 billion in corporate income taxes. Spending will total $62.7 billion. The budget assumes West Texas Intermediate oil will average US$92.50 a barrel for the year, US$22.50 higher than originally forecast. Rising prices will boost oil and gas investment by about 35 percent this year, mostly reflecting higher costs. Real spending growth in the industry may be “moderate” as companies repair their balance sheets. About 30 to 40 percent of cash flow is reinvested by energy companies. Other highlights from the budget update include:

The basic amount of personal tax will rise to $19,814 in the current tax year and rise again next year as these contributions are again adjusted for inflation. An additional 80,000 to 95,000 Albertans will pay no provincial personal income tax by 2023. The government plans to make the largest one-year addition to the province’s Heritage Savings Trust Fund by keeping the fund’s $1.2 billion in net investment income from this year and investing $1.7 billion of the surplus. Alberta’s population will grow by 2 per cent in the 2022 census year, accelerating from a 0.5 per cent increase in 2021.