The government expects the Alberta deficit to hit almost $6 billion, in spite f higher taxes in some areas due to recent tax increases. In a first quarter fiscal update the province announced the expected deficit, and some of the factors involved are the recent volatility in oil prices, a wildfire season that was more costly than anticipated, and new government spending on necessary expenditures. Around $1.4 billion of the expected deficit is due to operating expense increases in areas like health, education, and human services as well as close to half a billion for disaster assistance. A statement from Finance Minister Joe Ceci explains “The first quarter update highlights the difficult choices we have ahead as we build a budget that is prudent, while creating jobs and protecting the frontline services that Albertans count on. There is no doubt many Alberta families and businesses are feeling the effects of the dramatic drop in oil prices. That’s why our government is focused on building a plan for job creation and diversification of our economy.”
The expected Alberta deficit would probably have been even higher if not for the higher taxes that were recently enacted. Because oil prices are so unpredictable right now there could be significant fluctuations before the fall budget is released according to Brian Jean, the Fort McMurray-Conklin MLA and Wildrose leader. Jean said “This is the largest net financial drop in Alberta’s history. Instead of showing any kind of fiscal restraint, this forecast demonstrates a vacuum of leadership from our government.”