The province's first-quarter update says borrowing for infrastructure projects is now forecast to be just over $2 billion in 2014-15.
The projected surplus has grown by $300 million since the budget to $1.4 billion.
Finance Minister Doug Horner says revenue is up due to higher energy forecasts and stronger corporate income taxes.
Horner says Alberta's economy continues to grow as evidenced by a slight increase in real GDP.
He says the province has turned a corner economically and is back on strong financial footing.