Premier Smith says lower-than-forecast oil prices could mean Alberta budget deficit

Alberta Premier Danielle Smith says a potential budget deficit next year is not off the table.

Her government’s 2024 budget initially projected a surplus of $367 million when it was tabled in February.

Smith says that surplus was dependent on West Texas Intermediate oil prices averaging US$74 per barrel, but the price to start the week has been around US$68 per barrel.

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

She says the lower than projected oil price, coupled with other “different pressures” means a budget deficit is a possibility.

Finance Minister Nate Horner says it’s too early to say for sure, but says posting a surplus will be a challenge.

Smith wouldn’t say if a budget deficit means her promised income tax cut would be delayed further.

Story continues below advertisement

— More to come…

&copy 2024 The Canadian Press

Source