Budget Glossary

A reference guide to the terms, acronyms, and fiscal concepts used in Alberta's provincial budget documents.

119 terms|19 sections

A B C D E F G H I L M N O P R S T W Y

A

14 terms

Accrual Accounting: An accounting method where revenues and expenses are recorded when earned or incurred, not when cash is received or paid. The Government of Alberta uses accrual accounting for its financial statements, as required by Canadian public-sector accounting standards.
Acute Care: Hospital-based medical treatment for severe injuries, illnesses, or surgical procedures that require short-term intensive care. Acute care is one of the largest components of provincial health spending in Alberta.
Affordable Housing Partnership Program: A provincial program that provides funding for the construction and renovation of affordable and supportive housing units in Alberta, typically in partnership with municipalities, non-profit organizations, and the private sector.
AHS Zones: The five geographic health zones within Alberta Health Services: North, Edmonton, Central, Calgary, and South. Each zone manages the delivery of health-care services to its regional population.
AISH (Assured Income for the Severely Handicapped): A provincial program that provides financial assistance and health benefits to adult Albertans with a permanent disability that substantially limits their ability to earn a living. AISH is administered by the Ministry of Seniors, Community and Social Services.
Alberta Broadband Strategy: The provincial plan to expand access to high-speed internet in underserved and rural communities across Alberta. The strategy involves partnerships with internet service providers and federal broadband funding programs.
Alberta Energy Regulator (AER): The provincial regulatory body responsible for overseeing the safe, efficient, and environmentally responsible development of Alberta energy resources, including oil, gas, oil sands, and coal.
Alberta Future Fund: A proposed long-term savings vehicle intended to grow provincial wealth by setting aside a portion of resource revenue or budget surpluses for investment on behalf of future generations of Albertans.
Alberta Health Services (AHS): The single provincial health authority responsible for delivering publicly funded health care services across Alberta. AHS is the largest employer in the province and receives the single largest allocation in the provincial budget.
Alberta Medical Association (AMA): The professional association representing physicians in Alberta. The AMA negotiates physician compensation agreements with the provincial government and advocates on behalf of doctors on health policy matters.
Amortisation: The gradual repayment of debt through scheduled payments of principal and interest over a defined period. In government accounting, amortisation also refers to the allocation of a capital asset cost over its useful life.
Apprenticeship Program: A structured training pathway that combines on-the-job learning with technical classroom instruction, leading to certification in a skilled trade. Alberta funds apprenticeship programmes in part through provincial grants to training providers.
Appropriation: A legislative authorization granted by the Legislative Assembly that permits the government to spend public funds for a specified purpose and up to a specified amount.
Auditor General: The independent officer of the Alberta Legislature who audits government finances and reports on the efficiency and effectiveness of public spending. The Auditor General reports directly to the Legislative Assembly, not to the government.

B

4 terms

Balanced Budget: A fiscal position where government revenue and expenses are approximately equal, resulting in neither a significant surplus nor a deficit.
Bitumen Royalty: Payments that oil sands producers make to the Government of Alberta for the right to extract bitumen, a heavy form of crude oil. Royalty rates vary based on commodity prices and project economics under Alberta's royalty framework.
Bond Rating: An assessment by a credit rating agency of the province ability to repay its debt obligations. A strong bond rating allows Alberta to borrow at lower interest rates, reducing debt-servicing costs for taxpayers.
Budget Sensitivity: A measure of how much provincial revenue or expense changes when a key economic variable, such as the price of oil or the exchange rate, moves by one unit. Budget sensitivities help illustrate fiscal risk.

C

19 terms

Cabinet: The group of MLAs appointed as ministers by the Premier to lead government ministries and make collective policy decisions. Cabinet is the executive decision-making body of the provincial government.
Canada Health Transfer (CHT): The largest federal transfer to provinces, providing per-capita funding to support provincial health care systems. Provinces must meet the conditions of the Canada Health Act to receive CHT payments.
Canada Social Transfer (CST): A federal per-capita transfer to provinces that supports post-secondary education, social assistance and social services, and early childhood development and child care programs.
Cannabis Tax: Provincial revenue from the taxation of legal cannabis sales in Alberta. The province receives a share of the federal cannabis excise duty as well as revenue from its own cannabis licensing framework.
Capital Expense: Government spending on long-term physical assets such as hospitals, schools, highways, and other public infrastructure. Unlike operating expense, capital expense creates assets that provide benefits over many years.
Capital Grant: Funding provided by the provincial government to municipalities, school boards, health authorities, or other entities to build or acquire infrastructure. The recipient owns and operates the resulting asset.
Capital Maintenance and Renewal: Spending dedicated to preserving, repairing, and upgrading existing government-owned infrastructure to extend its useful life and keep it in safe, functional condition.
Capital Plan: The government's multi-year infrastructure investment plan, outlining planned spending on new construction, maintenance, and renewal of public assets such as roads, schools, hospitals, and water systems.
Carbon Competitiveness Incentive Regulation (CCIR): Alberta's former industrial carbon pricing system for large emitters, which required facilities exceeding emissions thresholds to reduce emissions or pay into a compliance fund. CCIR was replaced by the TIER system in 2020.
Cash Accounting: An accounting method where transactions are recorded only when cash changes hands. Cash accounting is not used for Alberta main financial statements but is sometimes referenced in the context of federal transfer payment timing.
Charter School: A publicly funded school in Alberta that operates independently under a charter approved by the Minister of Education. Charter schools offer specialised educational approaches and must demonstrate improved student outcomes.
Committee of Supply: The legislative committee process through which Members of the Legislative Assembly review and debate ministry budget estimates before voting on appropriations. Committee of Supply is a key part of the annual budget approval process.
Contingency: Funds set aside in the budget for unexpected or emergency costs that are not pre-assigned to any specific ministry. Contingency amounts are held centrally by Treasury Board and Finance and allocated as needs arise.
Continuing Care: A range of health services for people who need ongoing assistance with daily living or medical needs. Continuing care includes long-term care facilities, supportive living, and home care programmes funded by the province.
Corporate Income Tax: A tax on the profits of businesses operating in Alberta. The province's general corporate tax rate is 8%, the lowest among Canadian provinces, which is intended to attract business investment.
CPI (Consumer Price Index): A measure of inflation that tracks changes in the price of a representative basket of consumer goods and services over time. CPI is used in budget planning to estimate cost pressures on government programs.
Credit Rating: An evaluation of a borrower creditworthiness issued by agencies such as Moody, S&P, and DBRS. Alberta credit rating affects the interest rate it pays on provincial bonds and reflects the province fiscal health.
Crown Land Lease: A lease granted by the provincial government giving rights to use Crown land for resource extraction, grazing, recreation, or other purposes. Lease revenues form part of provincial resource income.
Crown Mineral Rights: Mineral rights owned by the province. The vast majority of Alberta subsurface minerals are Crown-owned, and the provincial government collects royalties from companies that extract these resources.

D

5 terms

Debt Servicing Cost: The annual interest payments the province must make on its outstanding debt. Debt servicing costs represent money that cannot be spent on programs or services and are sensitive to changes in interest rates.
Debt-to-GDP Ratio: Provincial debt expressed as a percentage of gross domestic product. It is a widely used measure of fiscal sustainability, indicating the size of government debt relative to the overall economy.
Deficit: Occurs when total government expenses exceed total revenue in a fiscal year. A deficit must be financed through borrowing, drawing down savings, or other means.
Diagnostic Imaging: Medical imaging services such as X-rays, CT scans, MRIs, and ultrasounds used to diagnose and monitor health conditions. In Alberta, diagnostic imaging is funded through the provincial health system.
Duty to Consult: The Crown legal obligation to consult with Indigenous peoples when government decisions may adversely affect treaty or Aboriginal rights. In Alberta, this duty applies to decisions such as resource development approvals and land-use changes.

E

3 terms

Equalization: A federal transfer program that redistributes revenue to provinces with below-average fiscal capacity so they can provide reasonably comparable public services. Alberta has never received equalization payments due to its relatively high fiscal capacity.
Estimates Debate: The process in the Alberta Legislative Assembly where opposition and government MLAs question ministers about their ministry budget allocations. Estimates debate provides legislative scrutiny of proposed spending before appropriation bills are passed.
Exchange Rate Assumption: The assumed Canada-US dollar exchange rate used in provincial budget forecasts. Because oil is priced in US dollars, a weaker Canadian dollar increases resource revenue when converted, and vice versa.

F

8 terms

Federal Transfers: Payments from the Government of Canada to the province, including the Canada Health Transfer, Canada Social Transfer, equalization (which Alberta does not receive), and other program-specific transfers.
First Nations Development Fund (FNDF): A provincial programme that distributes a portion of government-owned casino revenue to First Nations in Alberta. FNDF grants support economic, social, and community development projects in First Nations communities.
Fiscal Anchor: A target or rule that guides long-term fiscal policy and constrains government spending or borrowing decisions. Examples include a debt-to-GDP limit or a commitment to balanced budgets over the economic cycle.
Fiscal Plan: Alberta's multi-year budget document that sets out the government's projections for revenue, expenses, and capital spending over a three-year period. It serves as the central roadmap for provincial fiscal policy.
Fiscal Year: The 12-month accounting period used by the Government of Alberta, running from April 1 to March 31 of the following calendar year. For example, fiscal year 2026-27 runs from April 1, 2026, to March 31, 2027.
Francophone School Authority: A school board in Alberta that serves the francophone community by providing French-language education. Francophone school authorities operate under constitutional rights guaranteed by section 23 of the Canadian Charter of Rights and Freedoms.
Freehold Mineral Rights: Mineral rights owned by private landowners rather than the provincial Crown. Freehold minerals account for a small share of Alberta subsurface rights, and royalties on their production are collected through the federal freehold mineral tax.
Fuel Tax: A provincial excise tax applied to gasoline and diesel fuel sold in Alberta. The rate can be adjusted by the government, and fuel tax revenue supports general provincial programs and infrastructure.

G

3 terms

GDP (Gross Domestic Product): The total market value of all goods and services produced within the province over a given period. GDP is a primary measure of the size and health of Alberta's economy.
Glossary of Alberta Budget Terms: Definitions of key terms used in Alberta's budget documents, fiscal plan, and related policy analysis. A reference for journalists, analysts, and the public.
Government Business Enterprises (GBEs): Crown corporations and other government-owned entities that operate on a commercial basis, selling goods or services to the public. GBEs are financially self-sustaining and their results are reported in the provincial consolidated financial statements.

H

2 terms

Health Spending Account: A benefit plan component that allows individuals to allocate a set amount of funds toward eligible health and dental expenses. Health spending accounts are used in some public-sector compensation packages in Alberta.
Heritage Savings Trust Fund: Alberta's sovereign wealth fund, established in 1976 to save a portion of non-renewable resource revenue for future generations. The fund is managed by the Alberta Investment Management Corporation (AIMCo).

I

6 terms

Improvement Districts: Areas in Alberta that lack municipal government and are instead administered by the province. Improvement districts are typically found in remote or sparsely populated regions such as national parks and military bases.
Indigenous Opportunities Corporation (IOC): A provincial Crown corporation that provides loan guarantees to Indigenous communities seeking to invest in natural resource projects and other economic opportunities in Alberta. The IOC helps reduce borrowing costs for participating communities.
Inflation: A sustained increase in the general price level of goods and services, reducing purchasing power over time. Inflation is measured in Canada by the Consumer Price Index (CPI) and is a key assumption in Alberta budget forecasts.
Inflation-Proofing: The practice of adding funds to the Heritage Savings Trust Fund to offset the effects of inflation and maintain its real purchasing power over time. Inflation-proofing was suspended in 1987 and has been intermittently discussed since.
Interest Rate: The cost of borrowing money, expressed as a percentage of the principal. Interest rates affect government debt-servicing costs, economic activity, and are set in Canada primarily by the Bank of Canada through its policy rate.
Investment Income: Earnings generated from the province's financial assets, including returns on the Alberta Heritage Savings Trust Fund and other provincial investment portfolios managed by the Alberta Investment Management Corporation (AIMCo).

L

3 terms

Land Bonus: A payment made to the province by companies bidding on Crown mineral rights at public auction. Land bonus revenue reflects industry demand for exploration and development rights and forms part of non-renewable resource revenue.
Legislative Assembly: Alberta elected provincial parliament, composed of 87 Members of the Legislative Assembly (MLAs). The Legislative Assembly debates and passes laws, approves the provincial budget, and holds the government to account.
Local Government Fiscal Framework: The provincial funding program that provides predictable, formula-based grants to municipalities for infrastructure and operations. It replaced several previous municipal grant programs to simplify and stabilize local government funding.

M

6 terms

Metis Settlements: Eight self-governing Metis communities in Alberta established under the Metis Settlements Act. They represent the only legislated Metis land base in Canada and are governed by elected settlement councils and the Metis Settlements General Council.
Ministry Business Plan: A strategic plan published by each provincial ministry alongside the budget, outlining its goals, priority initiatives, objectives, and performance measures for the upcoming fiscal year and beyond.
Modernized Royalty Framework (MRF): Alberta current royalty system for conventional oil and gas, introduced in 2017. The MRF uses a simplified structure with lower royalty rates during the early, high-cost phase of a well life and higher rates once drilling costs have been recovered.
Municipal District: A type of rural municipality in Alberta governed by an elected council. Municipal districts provide local services to residents in agricultural and rural areas outside of cities and towns.
Municipal Requisition: The portion of property tax collected by municipalities on behalf of the province to fund public and separate school education. The education property tax requisition is set by the provincial government and collected locally.
Municipal Sustainability Initiative (MSI): A former provincial grant programme for Alberta municipalities that provided funding for local infrastructure and services. The MSI was replaced by the Local Government Fiscal Framework.

N

4 terms

Natural Gas Liquids (NGLs): Hydrocarbons such as ethane, propane, and butane that are extracted from natural gas during processing. NGLs are subject to provincial royalties and represent an important component of Alberta energy revenue.
Natural Gas Reference Price: The benchmark natural gas price used by the Government of Alberta in its budget revenue projections. It is typically based on the Alberta reference price or AECO hub pricing.
Net Debt: Total government liabilities minus financial assets. Net debt shows the government's overall financial obligation after accounting for assets that could be used to pay down liabilities.
Non-Renewable Resource Revenue: All provincial revenue derived from the extraction of finite natural resources, including oil and gas royalties, mineral royalties, land sale bonuses, and related fees. These revenues are inherently volatile and will eventually decline as resources are depleted.

O

5 terms

Operating Expense: Day-to-day government spending on programs, public sector salaries, grants, and the delivery of services such as health care, education, and social supports. Operating expense does not include spending on long-term infrastructure.
Operating Expense Ceiling: A policy limit on the rate of growth in government operating spending, typically tied to population growth plus inflation. The ceiling is intended to promote fiscal discipline and prevent spending from outpacing the economy.
Order in Council: A directive issued by the Lieutenant Governor on the advice of Cabinet. Orders in council are used to make government appointments, approve regulations, or enact policy decisions without requiring a vote in the Legislative Assembly.
Orphan Well: An oil or gas well whose owner is insolvent or cannot be found, leaving no responsible party to pay for decommissioning and site cleanup. Orphan wells require publicly funded or industry-funded remediation to address environmental liabilities.
Orphan Well Association (OWA): An industry-funded, not-for-profit organisation responsible for the decommissioning, remediation, and reclamation of orphan oil and gas wells, pipelines, and facilities in Alberta.

P

11 terms

Per Capita: A measurement expressed on a per-person basis, commonly used to compare spending, revenue, or economic output across provinces or countries with different populations. Per capita figures help illustrate how resources are distributed relative to population size.
Personal Income Tax: A tax levied on individual earnings and the largest source of non-resource revenue for the Government of Alberta. Alberta adopted a graduated personal income tax rate structure in 2015, replacing its former single-rate system.
Petrochemical Incentive Program (PIP): A provincial programme that provides royalty credits to companies investing in new or expanded petrochemical facilities in Alberta. The programme is designed to attract value-added processing of the province hydrocarbons.
Physician Compensation: The various models through which Alberta pays doctors for their services, including fee-for-service, alternative relationship plans, and salary arrangements. Physician compensation is a major component of provincial health spending.
Population Growth Assumption: The projected rate of population increase used in provincial budget planning. Population growth affects demand for public services like health care, education, and infrastructure, and influences revenue from income taxes.
Post-Secondary Institution: Universities, colleges, polytechnics, and other institutions that provide education beyond high school. In Alberta, post-secondary institutions receive a significant portion of their operating funding from provincial grants.
Primary Care Network (PCN): A partnership between family physicians and Alberta Health Services that delivers team-based primary health care. PCNs coordinate doctors, nurses, and other health professionals to provide comprehensive care in community settings.
Private Members Bill: Legislation introduced in the Alberta Legislative Assembly by a Member of the Legislative Assembly who is not a Cabinet minister. Private members bills allow backbench and opposition MLAs to propose new laws or amendments.
Property Assessment: The process of determining the market value of properties for taxation purposes. In Alberta, municipal assessors prepare annual assessments that form the basis for calculating property tax.
Property Tax: A tax levied by municipalities on the assessed value of real property to fund local services such as roads, water, policing, and recreation. In Alberta, property tax also includes a provincial education requisition collected on behalf of the province.
Public Accounts: The audited financial statements of the Government of Alberta, published annually after the fiscal year ends. Public accounts provide a comprehensive record of government revenues, expenses, assets, and liabilities.

R

4 terms

Real vs Nominal: Real values are adjusted for inflation to reflect actual purchasing power, while nominal values are expressed in current dollars without adjustment. Comparing real values over time provides a more accurate picture of changes in spending or revenue.
Regional Municipality: A municipality in Alberta that encompasses both urban and rural areas under a single local government. The Regional Municipality of Wood Buffalo, which includes Fort McMurray, is the most prominent example.
Resource Revenue: Income the province earns from its ownership of natural resources, including oil and gas royalties, mineral royalties, land lease sales, and bonuses. Resource revenue is a major but volatile component of Alberta's budget.
Royalty Framework: The set of rules governing how much producers pay the province for extracting Crown-owned oil, gas, and minerals. The framework determines royalty rates, deductions, and how payments change with commodity prices and production levels.

S

12 terms

Schools Capital Accelerated Process (SCAP): A fast-tracked school construction program used by the Government of Alberta to address urgent enrollment pressures by expediting the design and construction of new schools in high-growth communities.
Separate School: A publicly funded Catholic or Protestant school system that operates alongside the public school system under Alberta constitutional framework. The right to separate schools is protected by the Constitution Act, 1867.
Special Areas: Regions in eastern Alberta that are administered by the provincial government through the Special Areas Board rather than by elected municipal councils. These areas were established during the 1930s drought and remain under provincial oversight.
Speech from the Throne: An address read by the Lieutenant Governor at the opening of a new session of the Legislative Assembly, outlining the government policy agenda and legislative priorities for the session.
Standing Orders: The procedural rules governing debate, voting, and conduct in the Alberta Legislative Assembly. Standing orders establish time limits for speeches, the order of business, and the processes for introducing and passing legislation.
Student Aid: Provincial grants and loans provided to help Alberta students finance post-secondary education. Student aid is administered by the Ministry of Advanced Education and is based on assessed financial need.
SUCH Sector: An acronym for Schools, Universities, Colleges, and Hospitals, referring to the broader public sector entities that receive provincial funding. SUCH sector spending makes up a large share of Alberta's total operating budget.
Summer Village: A small seasonal municipality in Alberta, typically situated around a lake. Summer villages have limited year-round populations and provide basic municipal services primarily during the summer months.
Supplementary Estimates: Additional spending requests tabled in the Legislative Assembly during a fiscal year to authorize expenditures beyond what was approved in the original budget. They are used when ministries require more funding than initially appropriated.
Supply Votes: The legislative mechanism through which the Legislative Assembly authorizes government spending. Each ministry's budget is divided into votes that specify spending by category, and the Assembly must approve each vote.
Surplus: Occurs when total government revenue exceeds total expenses in a fiscal year. A surplus can be used to pay down debt, increase savings, or fund one-time investments.
Sustainable Fiscal Planning and Reporting Act: Alberta legislation that establishes the province's fiscal rules, including requirements for fiscal planning, deficit thresholds, quarterly reporting, and the preparation and tabling of budget documents.

T

5 terms

Taxpayer-Supported Debt: The total amount of provincial debt that must be repaid using tax revenue and other general government revenue, as opposed to debt that is self-supporting through dedicated revenue streams. It is a key measure of the fiscal burden on Albertans.
Technology Innovation and Emissions Reduction (TIER): Alberta's current industrial carbon pricing framework for large emitters, replacing the CCIR. TIER requires facilities to meet emissions benchmarks or pay a carbon levy, with revenue directed toward clean technology and emissions reduction programs.
Tourism Levy: A provincial tax collected on short-term accommodation in Alberta, such as hotel and motel stays. Revenue from the tourism levy supports tourism marketing and development through Travel Alberta.
Treasury Board and Finance: The provincial ministry responsible for Alberta's fiscal framework, budget preparation, financial management, economic forecasting, and tax policy. It coordinates the budget process across all government ministries.
Treaty Areas: Geographic regions in Alberta covered by historic treaties between the Crown and First Nations. Alberta is covered by Treaties 6, 7, and 8, which established agreements on land use, rights, and obligations between the parties.

W

4 terms

WCS (Western Canadian Select): The benchmark price for Alberta heavy crude oil blended at the Hardisty terminal. WCS typically trades at a discount to WTI due to its heavier quality and transportation costs.
WCS Differential: The price gap between WTI and WCS benchmark crude oils. A wider differential means Alberta heavy crude sells for less relative to light crude, which directly reduces provincial royalty revenue.
Weighted Moving Average (WMA): The funding formula used to calculate per-student grants for K-12 school authorities in Alberta. The WMA smooths enrolment fluctuations by averaging student counts over multiple years, providing more predictable funding for school boards.
WTI (West Texas Intermediate): The benchmark price for North American light crude oil, set at the Cushing, Oklahoma delivery point. Alberta uses WTI as a key input in its revenue forecasts because oil royalties are tied to commodity prices.

Y

1 term

Year-over-Year: A comparison of a statistic in one period with the same period in the previous year, used to measure change and identify trends. Year-over-year comparisons are common in budget documents to show how revenues and expenses are changing.