EDMONTON — Alberta’s budget surplus is growing but will be offset by more than $1 billion this year to pay for floods, forest fires and drought.

Finance Minister Nate Horner says the province is on track to record a $5.5-billion surplus when the 2023-24 budget year ends in March. 

That’s a $3.2-billion increase from the surplus predicted when the budget was introduced in February.

The extra money is due mainly to oilsands royalties, and higher personal and corporate income taxes.

The province is allocating $1.2 billion to pay for fighting and providing relief to people dealing with spring wildfires and summer flooding, and for livestock producers contending with dry conditions.

Taxpayer-supported debt is expected to fall by $3 billion to land at about $76 billion by next March as the province continues to make payments.

This report by The Canadian Press was first published Nov. 30, 2023.

The Canadian Press