When resource revenue is relatively high, the government faces pressure to increase spending.
The province will run a projected $12.3 billion budget surplus this fiscal year.
By reducing provincial debt, the province would be better prepared for the next inevitable shock.
Due to tax hikes in Ottawa and Edmonton, the province's top combined income tax rate increased to 48 per cent.
The province will run a $13.2 billion projected surplus in 2022/23 due largely to resource revenue.
From 2008/09 to 2020/21, the province's net financial position deteriorated by almost $100 billion.
In 2017, the province's per-person spending reached its highest level since 1965.
Alberta’s fiscal improvement is good news, but without significant policy changes, it will only last so long as commodity prices stay high.
The province is currently experiencing a windfall of resource revenue.