After ending 2024 with a $4.6-billion surplus Alberta is bracing for a $5.2-billion deficit this year.
That figure is based on the proposed American 15 per cent tariffs on Canadian goods and 10 per cent tariff on energy, as well as lower projected oil and gas prices throughout 2025.
Provincial personal income taxes are also dropping as the premier fulfills a 2023 campaign promise.
“This cut will save individual Alberta taxpayers up to $750 in 2025 to income, families could see savings of up to $1,500. Taxpayers who earn less than $60,000 will see their personal income taxes fall by 20 per cent,” said premier Danielle Smith.
Tariff threats incorporated
But the threat of tariffs has been incorporated into budget projections.
If the status quo remains, the deficit could be as low as $2.9 billion.
On the other hand, tariffs of 25 per cent would see that balloon to $8.7 billion.
“After expanding about three per cent last year. Alberta’s real GDP growth is forecast to drop to 1.8 per cent in 2025 and 1.7 per cent in 2026,” said finance minster Nate Horner.
While there’s uncertainty, Lethbridge is still set to receive upgrades and funding.
The City of Lethbridge was happy to see $520 million put aside for small and mid sized cities to enhance drinking and wastewater facilities.
Lethbridge will also receive a new school and urgent care centre.
The province also recommitted to enhance ICU capacity and funding a medical program at the University of Lethbridge.
“I was really excited to see the increase in funding for the medical training facility at the university. To be quite honest, it was a very big win. There’s going to be additional dollars put into this,” said Lethbridge Mayor Blaine Hyggen.
Unhappy
But not everyone is happy.
The University of Lethbridge Students Union says the university has lost about 20 per cent of its funding since 2019, with funding remaining flat this year.
“The continued increase in cost of living and with a forecast reduction in student aid, coupled with the retroactive, eligibility changes that were that was made last year in 2024. (The impact of) this budget for many students (is that) they will continue to see a struggle with accessing post-secondary education,” said ULSU president Maleeka Thomas.
The budget pegs West Texas Intermediate oil prices of $68 per barrel.
Every dollar of that price that changes means a $750-million adjustment in the budget.
