Alberta is projecting a budget surplus of $4.6 billion.

The Alberta government is forecasting a $4.6 billion surplus this fiscal year, but Finance Minister Nate Horner says Alberta faces a “challenging” future.

The government’s second-quarter budget report said only $2.9 billion of that surplus is expected to be cash, split between debt repayments and the Heritage Savings Trust Fund.

It says the surplus is largely the result of higher-than-expected income tax revenues thanks to Alberta’s booming population and oil and gas royalties.

But the budget report also said “global economic conditions” pose risks to the province’s finances.

As a result, the government lowered its average price expectations for West Texas Intermediate crude oil for the remainder of the fiscal year by $2.50 per barrel, compared with the $76.50 price expected in the first quarter report.

The government also says it plans to significantly reduce population growth next year, and the province’s unemployment rate is expected to rise.

This report by The Canadian Press was first published Nov. 21, 2024.