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Province projects $8.8 billion deficit in 2018-19 budget

Mar 22, 2018 | 3:28 PM

EDMONTON, AB – Finance Minister Joe Ceci said the province’s economy is showing signs of improving for the coming year.

Ceci tabled the budget for the 2018-19 fiscal year in the legislature Thursday afternoon, noting the province is projecting an $8.8 billion deficit, down $1.5 billion from last year.

“The recession is behind us, and Alberta’s economy is looking up,” Ceci said in a statement. “Alberta’s economy is creating good, mortgage-paying jobs and Alberta led the country in economic growth last year, and is poised to do so again in 2018.”

The Conference Board of Canada expects the provincial economy will grow by 2.7 per cent this year.

The budget is projecting revenue of $47.9 billion for the fiscal year, and are expecting it to grow to $50.6 billion in the 2019-20 fiscal year and $53.8 billion in 2020-21. The government is expecting the construction of the Trans Mountain Pipeline to factor in the increase in revenue in future years.

The government is projecting expenses of $56.1 billion for the fiscal year, followed by $57.8 million in 2019-20 and $59.8 billion in 2020-21.

Oil is being projected at $59 USD/barrel, according to the West Texas Intermediate. The projection is up from $54/barrel in the 2017 budget.

The budget also includes information on how the government plans to balance the books by the 2023-24 fiscal year. The government says a diversified economy, cost containment and reducing the reliance on resource revenue will result in lower deficits over the next several years.

Here is a look at some of the winner and losers from Thursday’s Alberta Budget:

WINNERS:

Parents — Spending on K-12 education to rise to $8.4 billion from $7.8 billion and some of that boost to be used to reduce school fees. The government plans to spend $22 million more on affordable child-care spaces and $6 million more on school lunch programs.

Students — Tuition to remain frozen for post-secondary students. Advanced education spending to jump to $6.1 billion from $5.5 billion.

The environmentally conscious — The government plans to spend $5.3 billion over the next three years on climate initiatives that include everything from transit projects to home efficiency programs.

The disabled — The Assured Income for the Severely Handicapped program is to get a boost of $62 million to $1.1 billion.

LOSERS:

Non-unionized civil servants — A salary freeze for all non-unionized government workers is being extended to 2019. Overall compensation for all public-sector workers is budgeted at $26.6 billion, about half of all government spending. 

Future taxpayers —  Debt is pegged $54.2 billion this year. The budget projects an $8.8-billion spending deficit in the year ahead. The budget is not expected to be balanced for another five years.