Alberta Facing Nearly $6 Billion Deficit
Alberta Facing Nearly $6 Billion Deficit
Thanks in part to falling oil prices and higher-than-expected costs for disaster assistance, Alberta is looking at a $5.9 billion deficit.
President of Treasury Board and Minister of Finance Joe Ceci announced on Monday that between Alberta’s forecasted $44.3 billion revenue and $50.2 billion in expected expenses, the province will likely be heading into some financial turmoil.
“There is no doubt that families and businesses are struggling due to the dramatic drop in oil prices,” said Ceci. “The last month has been volatile for the energy sector.”
Both Canada’s slumping loonie and Alberta’s hike in wildfires this summer have also helped to contribute to the nearly $6 billion deficit.
Alberta shelled out $456 million for disaster assistance, including agricultural drought relief and wildfire fighting costs, which is above and beyond the $301 million initially budgeted.
Despite the financial trials and tribulations, Ceci believes that Albertans can expect positive GDP growth in 2016.
“The first quarter update highlights the difficult choices we have ahead as we build a budget that is prudent, while creating jobs and protecting the frontline services that Albertans count on. There is no doubt many Alberta families and businesses are feeling the effects of the dramatic drop in oil prices. That’s why our government is focused on building a plan for job creation and diversification of our economy,” added Ceci.
Beginning April 1st, these figures are based on the first three months of the 2015-2016 fiscal year.