WATCH: Why Energy is So Important to Canada – Understanding Alberta’s Outsized Contribution to Confederation – Fraser Institute

By Tegan Hill, Nathaniel Li, Spencer Gudewill, and Milagros Palacios

• When Alberta is economically strong, all Canadians benefit, because money is redistributed to other parts of Canada.
• In 2022, despite restrictive federal policies, Alberta continued to contribute disproportionately to the federation.
• Alberta’s 5.0% real GDP growth rate was the fastest in Canada in 2022, accounting for 17.9% of Canada’s real GDP growth, despite being home to 11.6% of the population.
• In 2022, 56,245 Canadian residents relocated to Alberta, representing more than 75% of total net in-migration within Canada.
• Alberta reported the fastest private sector employment growth among the provinces (7.8%) in 2022, accounting for 19.2% of private sector jobs created in Canada.
• Per private sector worker, Alberta attracted $36,412 of business investment, more than double the national average (excluding Alberta).
• From 2007 to 2022, Alberta’s net contribution to the federal finances totalled $244.6 billion—more than five times as much as BC’s ($46.9 billion) or Ontario’s ($41.9 billion). In 2022, Alberta contributed $14.2 billion more to federal revenues than it received back in federal spending.
• If Alberta were an “average contributor” based on the other provinces, rather than a large net contributor, the federal government would have had a fiscal shortfall of $16.9 billion in 2022. For perspective, to cover this net revenue loss, the federal GST rate would need to increase from 5.0% to 7.2%.
• Put simply, without Alberta’s oversized contribution to the federation, Canada would be worse off. To benefit all Canadians, the federal government should focus on supportive policies, not restrictive ones.

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