Meeting the challenge was the theme of Budget 2025 as laid out by Alberta’s President of Treasury Board and Minister of Finance.
Albertans will be getting a tax cut but when it still a bit of a mystery. The cuts details released in the provincial budget Thursday, would see a nine per cent tax bracket on the first $60,000 of income starting next year, before fully implementing the eight per cent bracket in 2027.
However, Finance Minister Nate Horner notes that the numbers add up, and Albertans could see the impact as soon as this year. He says “saving individuals up to $750 a year and families up to $1,500 a year. Mr. Speaker, Budget 2025 is meeting the challenge of the cost of living by helping families move towards a brighter future – and adding more to each and every one of their paychecks.”
If passed, Budget 2025 is forecasting Alberta will have a $5.2 billion deficit. According to Horner, the budget contains, among other things, the largest ever expenditure levels in Alberta’s health care system.
He adds, the government is also being mindful of potential tariffs and other unanticipated cost pressures. Horner says “we’ve added additional contingency dollars to the contingency this year to address any potential impacts of tariffs from the United States – if they are applied – whether that happens next week, next month, or a year from now. Budget 2025 is meeting the challenge of uncertainties in trade and security by focusing on diplomacy and supporting the economy.”
According to Horner, the province’s education system is facing record enrollment growth and will see funding increase to a total of over $10 billion, and by 2027-2028 education funding is expected to rise to more than $11 billion.
Rural communities will see targeted investments continue at the University of Lethbridge to expand the rural medical teaching school. Horner says Budget 2025 contains funding to attract and retain health care providers in rural Alberta.
Horner highlights that the province is also keeping a keen eye on growing the Heritage Savings Trust Fund to $250 billion by 2050.
Horner, Premier Danielle Smith, Alberta’s Minister of Affordability and Utilities – Nathan Neudorf – are slated to talk more about the tax bracket changes on Friday morning in Calgary.
With files from Michael Lumsden, Vista Radio.
