The idea is simple—save during good times to help avoid deficits during bad times.
alberta sustainability fund
Successive governments have perpetuated the boom-bust cycle of provincial finances.
Governments in Alberta have a long history of increasing provincial spending during periods of high resource revenue, which inevitably leads to deficits once resource revenues decline.
The province went from spending $61 per person on provincial debt interest to roughly $562.
The province is currently experiencing a windfall of resource revenue.
The province's revenues could be up to $28 billion higher over the next two years.
According to recent forecasts, the province's resource revenue will likely be higher than forecast in Budget 2022.
By contributing to the Heritage Fund, the government would essentially transform a share of onetime resource revenue into a financial asset.