The Alberta government finished the 2015-16 fiscal year with a $6.4-billion deficit, $324 million higher than forecast in the October 2015 budget.
The deficit is just one of many indicators showing how the economic downturn is affecting the province’s finances, according to a financial update released Wednesday.
Resource-dependent Alberta was hurt by oil prices that plunged through the latter half of 2015. The annual report released Wednesday shows the amount of resource revenue dropped by $6.2 billion last year.
The economy contracted by 3.7 per cent in the 2015 calendar year.
Even though corporate and personal income tax rates went up last year, the overall amount collected was down $716 million from the previous year. Businesses are not doing as well, so they are paying less. The lower personal income tax figure is a reflection of the thousands of Albertans who lost their jobs last year.
Revenue from the tobacco and gas taxes was lower than budgeted.
Overall, government revenue was $1.3 billion less than forecast in the October 2015 provincial budget, with expenses coming in $964 million lower than expected.
The province’s contingency account sat at $3.6 billion by the end of March. But it will be drained to zero this year.
Alberta ended the previous 2014-2015 fiscal year with a surplus of $1.1 billion.