Alberta’s 2025 budget delivers a $1.2 billion tax cut but at the cost of a $5.2 billion deficit—the first since 2020.

"Promise made. Promise kept!" said Premier Danielle Smith in a social media post. "Today our government followed through on our election commitment to lower taxes for Albertans across the province. On average, each Albertan will now keep $750 more in their pocket each year, which means $1,500 per family!"

Finance Minister Nate Horner defended the move, arguing that Albertans need financial relief despite the province facing at least three years of shortfalls.

With falling oil revenues, potential U.S. tariffs, and rising costs in health care and education, the government is doubling its contingency fund while grappling with how to balance the books.

Budget Address - February 27th, 2025 https://t.co/7b6fYnDcgZ

— Legislative Assembly of Alberta (@LegAssemblyofAB) February 27, 2025

Key Financial Figures from Alberta Budget 2025:

• Projected deficits:

  • $5.2 billion in 2025
  • $2.4 billion in 2026
  • $2 billion in 2027

• Personal income tax cut:

  • Albertans earning under $60,000 annually will see a 20% reduction in personal income tax.
  • The cut will cost the province $1.2 billion in lost revenue.

• Oil price forecast (WTI per barrel):

  • $68 in 2025 (down from previous forecast of $74).
  • $71 in 2026 and $71.50 in 2027.

• Potential U.S. tariffs (Trump trade policy impact):

  • 25% tariff on non-energy Canadian exports.
  • 10% tariff on energy exports.
  • Low-growth scenario predicts up to 42,000 job losses by 2027.

• Spending increases:

  • Total operating expenses rising to $75.3 billion.
  • Health care spending growing to $23.7 billion by 2027.

• Contingency fund:

  • Doubled to $4 billion to cover economic instability, labor negotiations, and disaster relief.

Please donate to support Rebel News independent journalism in Alberta!

Unlike the corporate media, Rebel News doesn't take a penny from the government. Donate to support our 100% viewer-funded coverage of the Alberta Legislature here.

Optional email code

Amount

$25

$50

$75

$100

$250

$500

$1,000

$2,500

Other

$

One-time

Monthly

DONATE