Premier Ralph Klein says Alberta is the only province in Canada that can now declare itself debt-free.

"I've been dreaming about this day for some time now," Klein told reporters at a pancake breakfast at the Calgary Stampede Monday morning.

"Well, today I'm very, very proud to announce that Alberta has slain its debt," he said.

According the province's calculations, Alberta's final $3 billion in debt is to be paid by March 31, 2005, the end of the fiscal year. And to ensure the debt is paid off, Klein will introduce legislation this fall to declare that money can only be used to pay off the debt.

A decade ago, Alberta's $22.7-billion debt worked out to $8,400 for every man, woman and child in the province. Crediting soaring oil prices, Klein said Albertans should still feel proud of the accomplishment of whittling that down to zero.

"It's mostly due to the hard work of Albertans," the premier said.

"Never again will this government or the people of this province have to set aside another tax dollar to pay the debt," he said. "Those days are over and they're over for good... as far as my government is concerned."

With the debt paid off, the premier said Albertans will now decide how to spend the province's money in a survey to be sent out to all residences, called It's Your Future.

"Now that we've reached our destination, we need to know if the priorities of Albertans have changed," Klein said. "Everyone will have the opportunity to share their ideas on what Alberta's post-debt priorities should be."

Klein's announcement follows hot on the heels of the recent provincial budget that boasted of a $4-billion surplus in 2003-2004.

Based on a $230-million boost in fourth quarter oil, natural gas and other resource revenues, Alberta's massive surplus was also buoyed by a higher tax income, lottery revenues and health-care premiums.

In addition to the growing revenue, the province slashed spending in various departments by $248 million.

Despite Albertans' good fiscal news, critics wonder what cost they are paying for the province's debt-free status. Donna McPhe heckled the premier during his announcement, saying the province's books have been balanced on the backs of the poor.

"Alberta is mean and cruel and they have a war on the poor and I am sick of it as one person living in poverty,'' McPhe told reporters, her voice shaking with anger.

"It could have been wiped out anyway, but you had to make people suffer to do it? And we're supposed to party with you?"

The Canadian Taxpayers Federation is pleased the province has eliminated its debt, but is calling on the Klein government to now reduce taxes.

"With the debt gone, Premier Klein has the fiscal capacity to eliminate health premiums," said CTF spokesman David MacLean. "This health tax is in no way tied to health care use or any proposed reforms. Disguising a tax as a health user fee does nothing to foster health care reform."

Opposition members charge the government with taking credit for a turnaround built not on fiscal management, but rather the price the market is willing to pay for its resources.

The timing of Klein's announcement has many speculating that the three-time premier may call an election as early as this fall.

Hinting to reporters the next provincial election could be his last, Klein said Monday he's not leaving Albertans with a mountain named in his honour. Instead, he's leaving them with "a real, true, honest legacy."

"And it's an amazing gift to the future."

The last time a provincial government declared its books debt-free was in the late 1960s.

Then-British Columbia premier W.A.C. Bennett marked the occasion by loading up a barge full of government debentures, floating it on Lake Okanagan and attempting to ignite it with a flaming arrow.

The stunt missed its mark, leaving a Mountie to ignite the blaze with his cigarette lighter.