June 28, 2019 4:58 pm
Updated: June 28, 2019 4:59 pm

Higher oil prices, more tax income: Alberta ends 2018-19 with smaller deficit

Premier of Alberta Jason Kenney makes his way to a press conference during the Western Premiers' conference, in Edmonton on Thursday, June 27, 2019.


Newly released figures show the Alberta government ended the last fiscal year with a deficit more than $2 billion smaller than originally predicted in the budget.

Higher oil prices and more than $800 million in additional tax revenue are being credited for shrinking the red number.

The figures show resource revenue was up $1.6 billion from what was expected in the 2018-19 budget — the last brought in by Rachel Notley’s NDP before a provincial election loss earlier this year to Jason Kenney and the United Conservatives.

Story continues below

READ MORE: Lower minimum wage for Alberta youth takes effect Wednesday

Expenses were up $150 million and, overall, the Alberta government ended up spending $6.7 billion more than it made.

UCP Finance Minister Travis Toews, calling it unsustainable, focused on the province’s debt in a statement that accompanied the numbers.

READ MORE: Kenney government launches website to let Albertans help decide where to cut red tape

“Alberta’s debt has skyrocketed to more than $80 billion,” Toews said.

“This level of debt is unsustainable and we will be taking every measure possible to ensure this is brought under control to get Alberta on a path to balance.”

READ MORE: Alberta addressing concerns with driver’s licence test delays

Kenney has said he won’t release his government’s first budget until the fall to give a government-appointed panel time to examine Alberta’s finances.

The panel, headed by former Saskatchewan finance minister Janice MacKinnon, is to report by Aug. 15 on ways the province can save money.

READ MORE: New Alberta Speaker sheds light on rarely-seen corners of legislature

When she was appointed, MacKinnon called Alberta a big-spending province, but said that hasn’t translated into better public services.

“Even if the budget was balanced, I would look at the spending … because a lot of money is being spent in a lot of areas and you are not getting the outcomes,” she said at the time. “You are not getting the results.”

READ MORE: Alberta nurses launching legal challenge of province’s wage arbitration bill

The new government has already passed legislation that delays contract provisions that mandate binding arbitration for 180,000 public-sector workers. Under current collective bargaining agreements, those arbitration hearings must occur on or before the bill’s new deadline of Oct. 31.

The government said the delay is necessary to let MacKinnon’s panel do its work.

© 2019 The Canadian Press

Report an error


Want to discuss? Please read our Commenting Policy first.