Budget 2012: Spending Highlights and Economic and Revenue Highlights

Spending Highlights

Spending Highlights Overview

3 key facts about Budget 2012: 1. Increased investment in families, communities, education and supports for the vulnerable; 2. No tax increases; and 3. Balanced budget projected by 2013-14.

Revenue: $40.3 billion

  • Up $1.8 billiion from 2011-12 forecast, largely due to higher tax revenue stemming from economic growth, federal transfers and investment income

Expense: $41.1 billion

  • Total expense up $1.3 billiion from 2011-12 forecast
    largely due to about 75% of operating budget being
    invested in health, education and human services
  • $16.5 billion in public infrastructure over 3 years

Deficit: $886 million

  • Down $432 million from 2011-12 forecast
  • Forecast $5.2 billion surplus by 2014-15

Sustainability Fund: $3.7 billion (current balance)

  • Alberta’s short-term savings account, built up with money from past surpluses
  • Covers the deficit

Click here for the Spending Highlights pdf version.

Investing in families and communities

  • $100 million a year to improve access to primary health care and mental health services, including the introduction of Family Care Clinics to provide Albertans a variety of health services under one roof - three clinics to open in 2012.

  • $400 per month increase in the maximum monthly living allowance for about 46,000 Albertans who use the Assured Income for the Severely Handicapped program.

  • $110 million to decrease homelessness in Alberta, including the creation of an interagency council that will provide outreach support services, housing for 1,800 homeless, and over 3,100 shelter spaces.

  • 90 new RCMP offi cers and 55 new sheriffs to be hired across Alberta by 2013-14.

Investing in students and research

  • 14 new k-12 schools will be opening their doors this year, meaning 10,000 more children will be able to go to school in their own neighbourhood.

  • $34 million invested in k-12 students every school day.

  • $200 million for student fi nancial assistance providing for Alberta’s student debt management programs; scholarships; bursaries and grants.

  • $25 million to increase support for scientifi c research through an expanded, more competitive tax credit.

Investing in world-leading resource stewardship

  • $11 million to help deliver a comprehensive environmental monitoring program in the oil sands region, to assure Albertans we are developing our resources responsibly.

  • $540 million over three years in Green TRIP funding to make public transit more accessible and advance Alberta’s leadership in reducing greenhouse gas emissions.

  • $24 million to grow Alberta’s presence internationally to ensure better market access for our products.

  • $750,000 to fund the operation of the new research greenhouse facilities in Brooks, the Crop Diversification Centre – South.

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Economic and Revenue Highlights

Economic and Revenue Highlights Overview

Chart: 2012 Budget Revenue $40.3 billion Non-Renewable Resource Revenue: 27.8% Premiums, Fees and Licences: 3.5% Net Income from Commercial Operations: 5.7% Transfers from Government of Canada: 12.2% Other Revenue: 2.0% Other Taxes: 10.2% Personal Income Tax: 23.1% Corporate Income Taxes: 11.1% Investment Income: 4.4%

Graph: Alberta's revenue sources are volatile (* in billions of dollars)

  • Every $1 drop in the price of oil over 12 months
    = $223 million less revenue.
  • Every 10-cent drop in the price of natural gas over
    12 months = $28 million less revenue.
  • Every 1-cent rise in the exchange rate over 12 months = $247 million less revenue.
  • Note:  resource revenue includes royalties from oil, natural gas/by-products, bitumen and land lease sales.

Table: Energy and Economic Assumptions

  • Note:  increases and decreases reflect changes between 2011-12 forecasts and Budget 2012.

Click here for the Economic and Revenue Highlights pdf version.

Alberta's Strong Economy

  • Economic growth is expected to be 3.8% in 2012, almost double the expected growth for the entire country.

  • Employment growth in Alberta was 3.8% last year, by far the highest rate in the country.

  • Alberta accounted for about half of all new jobs created in Canada over the past year and has one of the lowest unemployment rates, averaging 5.5 per cent in 2011.

  • In December 2011, a record of over 2 million Albertans were working, up nearly 100,000 from the same time the previous year. Almost all new jobs have been full time positions.

  • Albertans continue to earn the highest wages in the country, almost 20% above the national average.

  • While Alberta has about 11% of Canada’s labour force, Alberta hires and trains more than 20% of the country’s apprentices.

  • Alberta’s per capita infrastructure support is about $1,500, 38% higher than the per capita average of what other provinces have been spending.

  • Investment in Alberta was over $70 billion in 2010, approximately double the national average on a per capita basis.

  • Businesses sold over $87 billion in goods and services to more than 180 countries around the world in 2010.

  • Albertans and Alberta businesses pay the least taxes in the country and would pay at least $11 billion more in taxes each year with any other provincial tax system.

  • Alberta has the lowest overall corporate and small business tax burden in Canada – with the lowest fuel tax, no payroll tax, no capital tax and no sales tax.

 

 


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Page last updated:  March 28, 2012