EDMONTON - The Alberta government expects to bring in $830 million more than anticipated in the budget earlier this year, and just under half of that will be used to help pay for the costs of its explosive economy.
"Alberta's economy continues to outpace the rest of the country,'' Finance Minister Lyle Oberg said Friday as he released figures for the first-quarter budget update.
The province's expected surplus for 2007-08 has also grown by almost $300 million to $2.5 billion.
Oberg said the government now expects to take in $36.2 billion which, after adjustments, leaves $575 million to be allocated.
Government policy dictates that two-thirds of that -- $383 million -- will go to capital spending for a province bursting with newcomers and needing to build and update infrastructure.
The remaining $192 million will go to the nest egg Heritage Savings Fund, bringing its forecast book value to $15.6 billion.
The province is also on track to spend $33.7 billion, a jump of $533 million from the budget's forecast, due to rising costs for existing capital projects and disaster and emergency aid needed after floods and forest fires.
The extra cash is due to higher than expected resource revenue, investment income and extra personal income tax from a population now pegged at around three million.
Revenue from personal income tax alone is forecast at $411 million and attributed largely to Albertans earning more money. Investment returns are bringing in $257 million more than first expected.
Resource revenue is up $237 million due to higher oil royalties but partly offset by lower natural gas royalties and land sales revenue.
