In its first budget as a debt-free province, Alberta boosted its spending, but left taxes virtually unchanged.

There were major increases for education, health and policing, more money for people with severe disabilities, and a predicted surplus of $1.5 billion.

Calling it an investment budget, Alberta Finance Minister Shirley McClellan said the province is heading into its second century with “an unparalleled opportunity to build on all the strengths Alberta has to offer.”

The oil and gas industry is expected to be the source of 28 per cent of the $27.3 billion Alberta in revenue will take in during the 2005-2006 fiscal year. That’s more than $7.6 billion, assuming the price of a barrel of oil is $42 US and the price of natural gas at $5.60 a gigajoule.

With the projected revenues, the Alberta budget predicts a $1.5 billion surplus for the year. But that could climb if energy prices stay high.