The Alberta government released its 2020 budget today (Thursday).

The UCP said the deficit was $1.2 billion lower than projected in Budget 2019. That will mean a reduction of $35 million in debt-servicing costs.

Finance Minister Travis Toews is forecasting a $6.8-billion deficit for 2020 on revenues of $50 billion. Debt is expected to rise to almost $77 billion by the spring of 2021.

“Budget 2020 continues our focus on creating jobs, growing our economy and streamlining programs and services to ensure a sustainable future,” said Travis Toews, President of Treasury Board and Minister of Finance. “Our plan is working. We are on track to balance the budget by 2022-23 and Alberta’s surplus in that year is expected to be higher than that projected in Budget 2019. We are also maintaining funding for health and education while ensuring each dollar is wisely spent on what Albertans need most.”

The 2020 Capital Plan commits $6.9 billion in 2020-21 to build and maintain key infrastructure projects across the province, including $10 million dollars in funding for Airdrie over the next two years for a ‘QEII and 40th Avenue Interim Ramp’.

Other highlights include:

  • $20.6 billion to provide health services, including $100 million for mental health and addiction strategy, $40 million for an opioid response, and $20 million for palliative care.
  • $3.9 billion for community and social services with a focus on more sustainable outcomes.
  • $637 million for seniors benefits and housing services.
  • $8.3 billion for education, an increase of $100 million as school jurisdictions transition to a new funding model by using reserves and own source funding.
  • $1.6 billion for children's services, to ensure children, youth and families have the services and supports they need to thrive.
  • $5.6 billion for direct municipal support
  • $2.5 billion for health facilities
  • $1.5 billion for schools
  • $288 million for post-secondary infrastructure
  • $2.7 billion for capital maintenance and renewal of public infrastructure
  • $2.3 billion for roads and bridges
  • $353 for family social supports and housing

The Province will also be implementing a tax on vaping products in the hopes of discouraging their use among young people. The UCP site Health Canada data showing nearly 20% of students in grades 7-12 have used vaping products in the last 30 days, up from 4.8% in 2014-15. Further details, along with the implementation date of the vaping tax, will be announced with the introduction of the legislation in Spring 2020 and associated regulations.

The Government is targeting short-term rental accommodations by applying Alberta’s 4% tourism levy. This will apply to online marketplaces, such as Airbnb, HomeAway and Vacation Rental by Owner (VRBO). Hotels and most other temporary accommodation providers are already required to collect the levy. The government says this is in an effort to “level the playing field”.

The education property tax will be increased by population growth plus inflation. As a result, education property tax revenue will increase by 3.4% in 2020-21.

Alberta's corporate tax rate has already been reduced from 12% to 10% as part of the Job Creation Tax Cut, and there are two more reductions scheduled. It will reach 9% on January 1, 2021, and drop to 8% on January 1, 2022.

To see the overall budget for yourself, click HERE.

Health and Education, click HERE.

For more on the Economic Outlook, click HERE.

Interested in the Tax Plan? Click HERE.