Deficit for Alberta as oil revenues plummet
Alberta’s expected surplus will now be a $500 million deficit due to the fast and deep drop in oil revenues. Alberta Premier Jim Prentice says that the province may stay in deficit for the next three years, even if oil prices rebound as expected. The government projections show that the deficit will get larger for a couple of years before balancing in year three. There will almost certainly be spending cuts and/or new revenue generators and while sales tax isn’t on the table there could be other taxation changes; possibly increased income tax.