Budget 2014 March 6, 2014

Fully balanced budget

Operational surplus

$2.6 B

Operational revenue

$43.0 B (up 5.4% from 2013-14)

Operational expense

$40.4 B (up 3.7% from 2013-14; excludes disaster/emergency assistance)

Change in net assets (consolidated surplus)

$1.1 B increase

Economic strength

Real Gross Domestic Product (GDP) Growth

0

1

2

3

4

5

6

Year

-ove

r-ye

ar %

cha

nge

AlbertaCanadaUSA

5.2

3.8 3.3

3.7

Economic strength

Unemployment rate, 2013

0 1 2 3 4 5 6 7 8

Canadianaverage

Alberta 4.6 %

7.1 %

Oil price differential

50

60

70

80

90

100

110$

WTI WCS

$15

$33 $10 $37

2013 Flood

$1.1 B in provincial support over next 3 years • $222 M operational expense • $859 M on capital

Money to help people and businesses for reconstruction and mitigation

Booming population

Priority spending

Investing in families and communities

2014/15: $1 B increase to core programs • New operating funding for:

• Health • K-12 schools • Post-secondary education • Human services

Comparing expense growth to population plus inflation growth

Building Alberta

Increasing net assets

Building Alberta

Estimated Assets and Liabilities, March 31, 2015

Alberta is the only province in Canada with net assets ($45 B)

The 4 rules of borrowing

Limited to 3.0% of operational revenue

Must have a clear repayment plan

Must protect Alberta’s AAA credit rating

Borrowing only for the capital plan

A plan for debt repayment

Annual amounts set aside for debt repayment

0

200

400

600

800

1,000

1,200

13/1

4

15/1

6

17/1

8

19/2

0

21/2

2

23/2

4

25/2

6

27/2

8

29/3

0

31/3

2

33/3

4

35/3

6

37/3

8

39/4

0

41/4

2

43/4

4

45/4

6

47/4

8

($m

illio

ns)

Future asset position

By 2017, Alberta will have $49B of net assets • $61B in financial assets • $34B in capital assets • $22B of capital debt (thru P3s and direct borrowing)

• After a 30-year amortization the debt will be paid off

Net debt to GDP

Investing in our future

Total Savings Plan expected to reach $26B by 2016-17

Savings Management Act

Investing in our future

$1 B (by 2015-16)

$200 M (2014-15)

$2 B (by 2023-24)

$200 M (2014-15)

Budget 2014 www.budget.alberta.ca

twitter.com/AB_TB_Finance #ABbudget