A coalition of groups that promotes medicare in Alberta is calling on the province to direct some of its budget surplus toward health-care delivery.

The Alberta government announced Tuesday it is projecting a $8.5 billion budget surplus for this fiscal year because of higher than expected oil and gas revenues.

David Eggen, executive director of Friends of Medicare, said in Calgary the government could find many areas in the health-care system where money could be spent to improve services for Albertans.

"Wait times are unconscionable," he said. "Our health-care professional shortage could be alleviated. This is money that is meant to be invested back into the population. Our public health care system needs it. And certainly, we can afford it."

Eggen said the government cannot argue that it doesn't have the money to spend on health care and earmarking funds for specific problems would be money well spent.

The surplus is $7 billion higher than the government projected in its budget released in April.

"Obviously, the money is available, and you get a fantastic return when you invest in the security of public health here in the province," he said.

As part of the first-quarter fiscal update, Health and Wellness Minister Ron Liepert said Tuesday the province will give $97 million to the new Alberta Health Services Board to cover regional health authority deficits and an additional $80 million to cover transitional costs.

However, Eggen said, money is needed for more than governance.

Much of the budget surplus has already been allocated.

Finance Minister Iris Evans said the government will allocate $2.5 billion to unspecified savings, $2 billion to create a fund for carbon capture and storage projects, $2 billion to roll out public transit upgrades and $1 billion to complete infrastructure projects.