Alberta’s government is reporting a $2.2-billion surplus for the 2025-26 fiscal year, marking its fifth consecutive year in surplus, while the opposition NDP says the money could have been put to better use.

A sixth consecutive surplus is projected for the 2026-27 fiscal year, but Finance Minister Jason Nixon says that doesn’t come without some challenges.

High oil prices throughout the year helped improve the budget from a $5.2-billion deficit forecast in the spring to a surplus. However, Nixon says the Finance Department will not be betting on those prices long term.

He says the department doesn’t want to make the “mistake” of previous governments by building oil prices permanently into the structural budget.

“We’re being very, very disciplined in the department of finance to make sure we don’t create that challenge in the future,” he says.

As of Oct. 26, the price of West Texas Intermediate (WTI) crude oil was above $100 per barrel.

Nixon says the temporary windfall from high oil prices will be invested in infrastructure, debt repayment and deposits into Alberta’s Heritage Trust Fund.

Alberta government documents report the fund earned $2.4 billion in net income in 2025-26, all of which will be retained to help it grow over time.

The Alberta government has set a goal of growing the Heritage Trust Fund to $35 billion by 2027 and $250 billion by 2050.

Net debt in 2026 was $33.6 billion, down $747 million from March 31, 2025. Nixon says keeping deficits manageable is a priority, particularly with the threat of rising interest rates driving up debt-servicing costs.

“Alberta continues to be the lowest taxed jurisdiction in the country — the place where everyone wants to invest and create jobs,” he says, adding that the Alberta government will remain disciplined and balanced in its spending.

Alberta Finance Minister Jason Nixon speaks to the government’s approach to future budgets

NDP responds

Alberta’s opposition NDP slammed the announcement, saying the UCP is mishandling the surplus.

A responsible government, it says, would use the surplus to provide tangible benefits for Albertans, including an affordability plan, a minimum wage increase, support for small businesses, a health-care recruitment strategy and more schools.

The NDP also criticized the government for focusing time and resources on a referendum that it said could cost Albertans “everything.”

A statement provided by the office of Court Ellingson, the Alberta NDP’s finance critic, also criticized the timing of the surplus announcement.

“The UCP is so desperate to change the channel from their disastrous referendum that they sat on their fiscal update for three months, only to release it now when they thought it would score them political points,” the statement said.

Revenue increases

According to Alberta government documents, total provincial revenue in 2025-26 was $79.8 billion, up $5.6 billion from the Budget 2025 forecast.

The increases, the documents say, were driven by $2.1 billion in additional investment income, a $932-million increase in corporate tax revenue and an $867-million increase in non-renewable resource revenue.

The 2026-27 second-quarter fiscal update is expected to be released by the end of November 2026.