Alberta finished the 2025-26 fiscal year with a surplus of more than $2.2 billion, marking a $7.4-billion turnaround from what the province expected when it introduced the budget.
Budget 2025 originally projected a $5.2-billion deficit as the government prepared for lower oil prices, trade uncertainty and rising service costs. The province’s final year-end results instead showed revenue coming in well above forecast and expenses finishing below budget.
Total provincial revenue reached $79.8 billion, approximately $5.6 billion more than forecast. The largest change was a $2.1-billion increase in investment income, followed by an additional $932 million in corporate income tax and $867 million in non-renewable resource revenue.
The province attributed the resource revenue increase largely to a spike in oil prices during March, the final month of the fiscal year.
Expenses totalled $77.5 billion, approximately $1.8 billion below the amount included in Budget 2025.
That does not mean provincial spending declined from the previous year. Alberta reported expenses of $74.1 billion in 2024-25, meaning spending increased by approximately $3.4 billion year over year while still finishing below the 2025-26 budget.
The $2.2-billion surplus was also substantially smaller than the $8.3-billion surplus recorded in 2024-25.
President of Treasury Board and Minister of Finance Jason Nixon said the province must remain cautious because of its exposure to changing energy prices.
“We know oil prices can change in a day, and we will not mistake a good year for a guarantee,” Nixon said.
The year-end result represents Alberta’s fifth consecutive surplus. Premier Danielle Smith said the government intends to continue reducing debt, retaining investment earnings and building the Alberta Heritage Savings Trust Fund.
The Heritage Fund was valued at approximately $32 billion as of March 31, an increase of $4.9 billion from the previous year. It earned $2.4 billion during 2025-26, representing an eight per cent return, with the investment income remaining in the fund.
The province also deposited $2.8 billion into the fund using surplus cash from 2024-25. That contribution came from the previous fiscal year and was separate from the newly reported $2.2-billion surplus.
The government has set a target of growing the Heritage Fund to $35 billion by the end of 2027 and $250 billion by 2050.
Alberta’s net debt stood at $33.6 billion on March 31, down $747 million from the previous year. Debt-servicing costs were $2.9 billion, approximately $277 million lower than in 2024-25.
The surplus was recorded while the province introduced an eight per cent personal income tax bracket on the first $60,000 of taxable income. The government estimates the change saved individuals as much as $750 and families as much as $1,500 in 2025. Approximately 2.3 million Albertans received a combined $1.2 billion in tax savings.
The province reported that Alberta’s real gross domestic product grew by approximately 2.5 per cent in 2025, compared with the 1.8 per cent growth forecast in Budget 2025. Employment grew by 2.8 per cent and inflation averaged two per cent.
For communities such as Crowsnest Pass, the year-end report does not itself approve new local projects or service funding. It closes the books on provincial revenue and spending through March 31, while future allocations for health care, education, highways and municipal programs will be determined through subsequent budgets and grant decisions.
A sixth consecutive surplus has not yet been finalized. Alberta’s first-quarter forecast for 2026-27 projects a $2-billion surplus, driven largely by higher oil prices and resource revenue. The province is expected to release its second-quarter update by the end of November.