Edmonton

Alberta records $1.1B surplus in first half of fiscal year

The province of Alberta recorded $1.4 billion more revenue than expected in the first six months of the fiscal year.

Province attributes surplus to higher energy prices and investment income

Alberta Finance Minister Doug Horner says the province is in a strong financial position to deal with billions of dollars in flood damage costs. (CBC)

The province of Alberta recorded $1.4 billion more revenue than expected in the first six months of the fiscal year.

But Finance Minister Doug Horner warns it has only begun to see what impact the June floods in southern Alberta will have on the province's finances.

"To the tune of $1 billion in immediate support for those impacted by the disaster and it's going to cost a lot more than that in the long run, but you know what?" he said. "We're in a strong financial position and we'll be able to deal with this pressure."

By the end of September, $351 million had been spent on flood assistance efforts.

Horner attributed the higher revenues to higher oil prices, increased investment income and higher personal income tax revenue from a growing population.

Overall the province is left with a $1.1 billion surplus for the first six months of the year.

The Canadian Taxpayers Federation's Derek Fildebrandt said the figure doesn't include $5.3 billion in capital spending on infrastructure for this year.