CALGARY – Alberta’s deficit has been reduced by 60 percent since the province started its reductions one year ago.
Provincial treasurer Jim Dinning said Nov. 25 that the second quarter report for this year shows the provincial deficit is down to $655 million, keeping the government within sight of its goal – a balanced budget in 1997.
The dramatic decrease is due to spending cuts combined with higher than expected resource revenue and lottery sales.
“The major change is on the revenue side which is up by $680 million because of higher oil prices and stronger revenues coming from the sales of crown leases,” said Dinning in a province-wide press conference.
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The money from lotteries and the energy industry will not be used to ease department budget cuts because those industries’ earnings are too unpredictable, said Dinning.
“We must continue to focus on the spending side. We don’t have a revenue problem, but we do have a spending problem,” he said.
Three departments, health, education and advanced education spent more than expected. The other government departments are on or below budget, said Dinning.
Health spent more because of extended health care benefits which will be covered by health care premiums.
Advanced education is up because $6 million was spent on retraining programs for welfare recipients. This will be covered by funds from social services, which has spent less than its budget, said Dinning.
