EDMONTON — Alberta finance minister Doug Horner didn’t sugar coat the budget.
Declining oil and gas revenue and a growing economy has left Alberta in a tough financial position.
“We are in a deficit,” Horner told reporters before giving his budget speech. “We are having a tough time here.”
The province is facing a $1.97 billion deficit, is borrowing $4.3 billion for capital projects and will borrow an additional $2.1 from the government’s saving account.
The provincial government is expected to take in $37 billion in revenue and will spend $38 billion.
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With no tax increase, no new taxes and no sales taxes and lower oil and gas revenue, the government is struggling to find sources of revenue to cover their costs from a growing population.
“This is the biggest fiscal challenge we have seen in a while,” said Horner.
“We are making thoughtful and responsible solutions to address fiscal challenges,’ he said.
Operational spending is maintained at $36.4 billion, the same as last year.
Over the next three years it plans on borrowing $15 billion for infrastructure projects.
“In a time when population growth plus inflation is 4.3 percent, we are significantly holding the line on spending and living within our means. There will be changes, but they will not be across-the-board reductions, where everyone gets a haircut,” said Horner.
