Agriculture disaster relief and one of the costliest firefighting seasons on record and increased government spending added up to boost Alberta’s expected budget deficit to $5.9 billion.
Alberta finance minister Joe Ceci said the first quarter results show an increase of $456 million of disaster assistance, including agricultural drought relief and wildfire fighting costs, in excess of the $301 million allocated in the March 26 budget.
The updated forecast is a snapshot of the province’s financial outlook from April through June. The updated forecast includes an increase of $1.4 billion in operating expenses, reflecting the government’s decision to reverse spending cuts in health, education, innovation and advanced education and human services.
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Revenue is forecast at $44.3 billion, $1 billion higher than previously forecast. This reflects a net increase of $497 million in income tax revenue this year, mainly due to the government’s introduction of a graduated income tax system that takes effect Oct. 1.
The forecast does not take in the continuing drop in oil and gas prices, the government relies on heavily for its revenue.
The NDP government plans to table its first budget soon after the fall session convenes Oct. 26.
