EDMONTON – Alberta’s budget deficit is expected to rise to $6.3 billion this year as the effects of collapsing oil prices burrow deeper into the province’s contracting economy.
Finance Minister Joe Ceci says hard times are adding another $197 million in red ink this fiscal year, which ends March 31.
“This is a once-in-a-generation economic challenge,” Ceci said.
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“As such, we are committed more than ever to prudent fiscal management, creating jobs and diversifying the economy. This includes protecting services Albertans need, putting people back to work with an expanded infrastructure program, and promoting home-grown business and entrepreneurship.”
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He says the bad news is offset somewhat by the low Canadian dollar, which helps an exporter such as Alberta.
Ceci says the province will also benefit from a one-time payment of $251 million from a federal government program that assists provinces dealing with sudden and deep drops in revenue.
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Oil and gas investment is expected to fall by 20 per cent in 2016.
Ceci says Alberta is still planning to save money where it can and keep front-line jobs intact, but is taking on debt to build roads, schools, and hospitals.
“Energy producing provinces are experiencing declines that will probably lead them to deficits,” Ceci said.
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He said he will release the 2016-2017 budget in early April and that the slumping oil prices are projected to leave the province with a record $10.4-billion deficit in the next budget.
He also said the budget won’t be balanced by 2019-2020 as promised.
Ceci also stressed “there will be no PST in this province.”
“I’ll be as clear as I can: there will be no new taxes… It’s not the right time.”
With files from Global News
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