2021-24 Fiscal Plan (Alberta Budget 2021) - February 25, 2021

1 Budget 2021 Fiscal PlanProtecting Lives and Livelihoods2021 24 Alberta Treasury Board and Finance Communications 9th floor, Edmonton Federal Building 9820 107 Street NW Edmonton, Alberta, T5K 1E7 Telephone: 780 427-5364 Toll-free within Alberta: 310-0000 then 780 427-5364 electronic copies of Budget 2021: Fiscal Plan visit our website at: 978-1-4601-5006-1 (Print)ISBN 978-1-4601-5007-8 (PDF)ISSN 2369-0119 (Print) ISSN 2369-0127 (Online)Copyright 2021 President of Treasury Board and Minister of Finance and its licensors. All rights BYTRAVIS TOEWSPRESIDENT OF TREASURY BOARD AND MINISTER OF FINANCEin the Legislative Assembly of AlbertaFebruary 25, 2021 Budget 2021 GOVERNMENT OF ALBERTA | 2021 24 Fiscal Plan2021 242 Fiscal Plan 2021 24 Accountability StatementThe government s Fiscal Plan for the three years commencing April 1, 2021 was prepared under my direction in accordance with the Fiscal Planning and Transparency Act and the government s accounting policies.

2 All of the government s policy decisions as of February 16, 2021 with material economic or Fiscal implications have been considered in preparing the three year Fiscal Plan. Travis Toews President of Treasury Board and Minister of Finance February 16, 2021 Original signed by3 Fiscal Plan 2021 24 Fiscal Plan 2021 24 Overview .. 5 Fueling Canada s Economic Recovery .. 21 Economic Outlook .. 41 Revenue .. 73 Expense .. 95 Capital Plan .. 125 Tax Plan .. 143 Debt .. 161 Fiscal Plan Tables .. 169 Response to the Auditor General.

3 187 Note: Amounts presented in tables may not add to totals due to PAGE5 Budget 2021 GOVERNMENT OF ALBERTA | 2021 24 Fiscal PlanOverview6 Overview | Fiscal Plan 2021 24 Overview .. 7 Protecting Lives and Livelihoods .. 7 Alberta's Response and Economic Recovery .. 8 Supporting the Energy Sector .. 12 Energy and Economic Assumptions .. 13 Revenue .. 14 Expense .. 15 Public Sector Compensation .. 17 Capital Plan .. 17 Debt and Deficit .. 19 Fiscal Anchors.

4 19 Fiscal Summary .. 20 table of ContentsNote: Amounts presented in tables may not add to totals due to | Fiscal Plan 2021 24 OverviewProtecting Lives and LivelihoodsAlbertans continue to face one of the most difficult times in our history . Budget 2021 is focused on what matters most: protecting lives and livelihoods .As we head into the second year of the fight against the COVID-19 pandemic, Alberta still faces a long road to recovery . While vaccines offer hope, it will be several months before there is widespread immunization in the province.

5 Our health care system will remain under pressure and so will the economy . Budget 2021 ensures that our health care system is properly resourced to continue the fight against COVID-19 and to protect the lives of Albertans . It adds $1 .25 billion specifically for pandemic-related costs including extra health system capacity, treatment, personal protective equipment, contact tracing and testing and vaccine administration .This Budget also invests in livelihoods . Alberta s economy was hit particularly hard with the dual shock of COVID-19 and the collapse of oil prices.

6 Budget 2021 includes significant support for Alberta s Recovery Plan to support jobs today and tomorrow . A strategic focus on key economic sectors will set the stage for post-pandemic recovery .The dual priorities of protecting lives and livelihoods have temporarily interrupted our plans for balancing the Budget . The government, however, has not wavered from our commitment to good financial management and Fiscal prudence . Sound Fiscal anchors of net debt to GDP, aligning our per capita spending with other major provinces and re-establishing a plan to balance the Budget post-pandemic, will protect the health of Alberta's finances.

7 8 Overview | Fiscal Plan 2021 24 Alberta's Response and Economic RecoveryAt the beginning of last year, we saw the start of the biggest health crisis in a century, the deepest global economic contraction since the Great Depression and an unprecedented collapse in oil prices . We are still dealing with the impacts of these historic events today .Alberta's public health response continues to focus on prevention, curbing the spread, and ensuring our hospitals have capacity for worst-case scenario outbreaks .The government also announced swift measures to address the economic consequences of the pandemic, created tangible support for job creators, and freed up cash for families and business to help relieve the pressure.

8 In 2020-21, government allocated $5 .8 billion in expense and $0 .7 billion in capital investment to COVID-19 response, economic stimulus and Recovery Plan initiatives . This is in addition to measures such as accelerating the Job Creation Tax Cut; waiving interest and deferring payments on student loans; mortgage and loan deferrals through ATB Financial; freezing education property tax rates and deferring payments; and deferring utility payments .Alberta's government provided immediate support for health and social services, including: $1 .5 billion in operating expense to ensure our healthcare system was properly resourced, with an additional $530 million for personal protective equipment (PPE);The government is focused on protecting the lives and livelihoods of Albertans during this pandemic.

9 Pdf named: 2021 Overview SectionBudget 2021 Key Fiscal Metrics(billions of dollars)2019-202021-222022-232023-24 ActualBudget Expense Operating Other Total Expense (before provisions and allowances) COVID-19 / Recovery Contingency / disaster Contingency - COVID-19- - - - - Contingency - Recovery Plan- - - - - Crude-by-rail.

10 - Surplus / (Deficit) ( ) ( ) ( ) ( ) ( ) ( ) Other Key Metrics: Capital / Other Non-financial Heritage Fund Year-end Taxpayer Supported Net Financial Net Debt to named: : See table on page 20 for amounts in update: 2/18/2021 /12:36 PMS:\TBF\MinShare\PublnsProd\CorpFin\ 2021 22\2021 22_Fiscal Plan_vol\01_Overview_B21\Source docs\Bud21_FP_Overview_tables/ Key Fiscal Metrics#Classification: Protected ANote: See table on page 20 for amounts in 2021 Key Fiscal Metrics(billions of dollars)9 Overview | Fiscal Plan 2021 24 Alberta provided immediate relief for individuals, families and businesses.