Higher tax revenues from Alberta's booming economy have pushed the province's surplus to $4 billion, nearly double what was forecast in the April budget.
The surplus would have been even higher but for the robust Canadian dollar.
In a second-quarter fiscal update Tuesday, Finance Minister Lyle Oberg said two-thirds of the extra surplus will be spent on construction projects and the rest transferred to savings accounts, including the Heritage Savings Trust Fund.
The province projected revenues to come in at $37.5 billion, up $2.2 billion from the budget, mainly attributed to a higher income-tax take.
Resource revenue was up $792 million from budget, with higher oil and oilsands royalties partly offset by lower natural gas royalties and land sales revenue.
Revenues were also mitigated by the higher loonie, which costs the province $123 million for every cent it goes up. The strength of the Canadian currency took a $1.5-billion bite out of provincial revenues.
"This quarter clearly illustrates how volatile the markets can be," Oberg said in a news release Tuesday. "We will continue to keep a close eye on the Canadian dollar and the price of oil and gas to assess their impact on our long-term fiscal planning."
The surplus is less than half of last year's amount as Alberta continues to increase spending on building projects.
Expenses are projected to reach $33.6 billion, with an extra $412 million going to construction projects, emergency flood assistance and fighting forest fires.
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