Canadian energy powerhouse Alberta plans to pay down government debt and cut income tax rates if a predicted windfall in oil and natural gas royalty revenue pans out, provincial officials said last week.

aeco price graph

Assuming oil and gas prices remain at current levels through the province’s fiscal year, which ends March 31, 2023, a new government quarterly report on public finances concluded the province would achieve a C$13.2 billion ($10.6 billion) budget surplus for the 2022-23 period.

“For too long, governments in Alberta refused to exercise fiscal discipline during boom times,” said Finance Minister Jason Nixon. “Those days are over.”

Alberta’s government is earmarking its royalty windfall to cover a planned C$13.4 billion ($10.7 billion) debt repayment and an indexing...