Prosperity Bonus

The Prosperity Bonus, also nicknamed Ralph bucks, announced in September 2005, is the name given to a program designed to pay money back to residents of the Canadian province of Alberta as a result of a massive oil-fuelled provincial budget surplus.

Alberta Premier Ralph Klein announced that each person in Alberta would receive $400 sometime in January 2006. This represented $1.4 billion (20%) of the $6.8 billion surplus. The money was not taxed by either the federal or provincial governments.

All Albertans who were residents of the province as of September 1 and filed a 2004 tax return with the Canada Revenue Agency received the bonus, except for prisoners, who did not qualify. Cheques for Albertans under 18 years of age were payable only to their primary caregiver (the mother in most cases), thus leaving parents to determine how their children's share was to be distributed or used. Homeless Albertans also qualified—the government pledged to work with inner-city agencies to ensure that the homeless receive their money. Other questions were unanswered. For example, it was unknown how spouses fleeing abusive relationships would receive their bonus if they were housed in a shelter.

Klein said more prosperity bonuses might follow if oil prices remained high but none were issued before he left office.