EDMONTON – Premier Jim Prentice says Alberta’s economy is on a razor’s edge and deficits will be needed to prevent it from falling into the deep.
Prentice, in a conference call from Houston, said economists are telling him that without deficits the low price of oil could push Alberta into a recession and make matters much worse.
READ MORE: Conference Board says Alberta recession likely – Premier Jim Prentice disagrees
Alberta is struggling with collapsing oil prices that have siphoned billions of dollars from the treasury.
Prentice has refused to rule out clawing back public-sector salaries or imposing tax increases or a sales tax.
READ MORE: Alberta premier Prentice considers sales tax to fix ailing, oil-based economy
The premier also fuelled speculation that an election is coming this spring by saying he won’t proceed with any financial changes without a mandate from the people.
Responding to a suggestion that he and his Progressive Conservatives failed to manage the economy in good times, the premier said he just took over the top job four months ago.
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