Alberta ended its 2024-25 fiscal year with a stronger-than-expected $8.3-billion surplus, driven largely by higher oil and gas royalties and increased tax revenue from a growing population, the provincial government announced late last week.

Finance Minister Nate Horner said just over $5 billion of that surplus is in available cash. The funds will be allocated toward savings, debt reduction, and contributions to the Heritage Savings Trust Fund. The province brought in $22 billion in non-renewable resource revenue during the year, including $17 billion from bitumen royalties.

Alberta also received a $713-million payment through a national tobacco settlement. Despite the solid year-end numbers, the province is projecting a $5.2-billion deficit for 2025-26. Horner pointed to fluctuating oil prices, recent tax cuts, and ongoing global uncertainty—including new U.S. tariffs—as key challenges.

Trade tensions with U.S. President Donald Trump over Canada’s digital services tax could further impact Alberta’s bottom line, he added. While stronger oil prices could help reduce the forecasted deficit, Horner said the province will continue to rely on conservative oil price projections in an effort to maintain fiscal stability.