Alberta Budget and Economic Outlook 2025

The Government of Alberta is predicting stormy skies ahead. Alberta’s 2025 Budget and Economic Outlook notes the stark shift in U.S. trade —in the form of tariffs—will put a damper on the 2025-26 outlook. Canada is expected to face an average of 10% tariffs on energy products and 15% tariffs on all other goods. Retaliatory tariffs are likely to follow, adding to the strain on Alberta’s economy. As a result, Alberta’s economic growth is projected to slow from 3% in 2024 to 1.8% in 2025 and 1.7% in 2026.

Given this economic backdrop, Alberta’s government is taking a cautious approach to Budget 2025 but it is still making strategic investments in tourism and sport, infrastructure and wildfire mitigation.

Tourism and Sport

  • Continue to implement Higher Ground, Alberta’s Tourism Strategy and grow the province’s visitor economy to $25 billion in annual visitor expenditures by 2035.
  • Implement the All-Season Resorts Act in support of the Tourism Strategy, streamline processes for tourism operators, and increase investor confidence.
  • In 2025-26, $75.2 million is allocated to Travel Alberta to foster tourism growth and diversification and attract visitors from around the world.

Transportation & Economic Corridors

  • $6 million in 2025-26 to complete the development of a Passenger Rail Master Plan, including a 15-year delivery plan to support passenger rail in Alberta.

Capital Plan

  • $69 million over 3 years for Highway 40 grade widening between Grande Cache and Hinton.
  • 208 million over three years for Highway 11 twinning from Red Deer west to Rocky Mountain House.
  • $24 million over three years for Highway 1A Upgrade through Stoney First Nation.

Forestry and Parks

  • Develop a Crown land recreation and conservation strategy to expand public access while protecting natural spaces, including a new Plan for Parks.
  • Maintain or improve operations, recreation infrastructure and visitor experience in Alberta provincial parks and on public lands through capital investment, education, and compliance.
  • In 2025-26, $83.5 million for Crown land recreation and maintenance, including refurbishing and building trails.
  • In 2025-26, $95.2 million for to maintain Alberta Parks operations.
  • In 2025-26, $30.7 million for wildfire mitigation initiatives.
  • In 2025-26, $2.1 million to modernize wildfire applications.

Performance Metrics

  • Public Lands Act applications processed within established service standards
    • Target is 93% in 2025-26, rising to 99% in 2023-24.
  • Satisfaction with the quality of services and facilities of Alberta Parks
    • 85% satisfaction achieved in 2023-24.
    • Target remains steady at 85% to 2027-28.
  • Percentage of wildfires contained before 10 am the day following assessment
    • In 2024, 86.27% of wildfires were contained in that timeframe.
    • In 2025-26, the target is 95% and remains the same to 2027-28.

Capital Plan

  • $2 million in 2025-26 for Canmore Nordic Centre Snowmaking System Replacement.
  • $24 million over three years for Crown Land Trails.
  • $5 million over three years for Kananaskis Area Trail Upgrades.
  • $29 million over three years for new campgrounds development.
  • $116 million over three years for Provincial Parks capital maintenance and renewal.