Alberta Premier Jim Prentice said the province will need to make “tough choices” and build a stable economy if it is to weather the latest budget crisis.
“This is going to be a very difficult year,” Prentice told the crowd at a luncheon hosted by the Edmonton Economic Development Tuesday.
“We have not been doing a good job with our public finances. We have been living beyond our means.”
Premier Jim Prentice has recently revealed that the province is forecast to end the year with a $500 million deficit.
Now, the Conference Board of Canada says that the drop in oil may push Alberta into a recession.
Prentice said government forecasts predict that oil prices will remain around $62 dollars a barrel, which will mean a $6.2 billion hole in Alberta’s budget.
“This is not just about shaving down salaries,” he said.
The premier argued the province has been too reliant on volatile oil revenues in the past. He said the government needs to take measures to make its income more stable.
“We cannot wait for high prices to return. I think it’s fair to say that everyone in this province has had enough. Enough of the rollercoasters.”
Prentice said “nothing is off the table” and that he will begin consolations with the public with how to deal with the financial crunch.
