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On November 21, 2024, the Government of Alberta released its 2024-25 second quarter fiscal update and economic statement, revealing a stronger-than-expected fiscal position with a projected surplus of $4.6 billion – an increase of $1.7 billion from the first-quarter forecast. 

The Edmonton Chamber of Commerce welcomes Alberta's strong financial performance, which demonstrates prudent fiscal management and the resilience of an increasingly diversified economy. Key highlights from the fiscal update include: 

• Revenue growth: Total revenue is forecast at $77.9 billion, up $4.4 billion from budget projections. This increase is fueled by higher personal income tax revenues, robust corporate income tax receipts, and gains from non-renewable resource royalties. 

• Expense adjustments: Total expenses have risen modestly to $73.3 billion, with allocations made for health services, education, and wildfire disaster response. 

• Debt and reserves: $1.44 billion will be directed toward taxpayer-supported debt repayment and $1.44 billion to the Alberta Fund, further enhancing the province’s long-term financial stability. 

While these results are encouraging, Alberta businesses continue to face significant challenges. According to Statistics Canada, 65.7% of business cite cost pressures such as inflation, rising input costs, and debt servicing as major concerns. Labour shortages, recruitment difficulties, and high interest rates further compound these issues. Alberta’s fiscal strength offers a unique opportunity to address these issues by reducing public debt, strategically investing in communities and businesses, and easing affordability pressures for Albertans. 

 

Call to Action

The Edmonton Chamber of Commerce urges the Government of Alberta to leverage this fiscal surplus to: 

• Support our municipalities, by reinstating full funding through the Grants in Place of Taxes (GIPOT) program. 

• Eliminate the province’s 2% small business tax, to create a more affordable and competitive business environment. 

• Reinstate the Canada-Alberta Job Grant, empowering businesses to upskill their workforce and enhance economic competitiveness. 

• Invest in Edmonton’s downtown, through actions outlined in the recently announced Downtown Investment Plan. 

These measures will ensure sustainable growth, strengthen Alberta’s position as a leader in innovation and opportunity, and enhance the well-being of our communities. 

The Edmonton Chamber of Commerce remains committed to working with the provincial government to build a vibrant, resilient future for all Albertans.