By The Canadian Press

Auditor general calls for long-term financial forecasts as oil revenue decreases

Apr 20, 2018 | 6:28 AM

EDMONTON – Alberta’s auditor general says a long-term fiscal projection would help the province as it deals with oil price swings and a diminishing non-renewable resource.

In his farewell report, Merwan Saher says enormous oil revenues, such as have been enjoyed by Alberta in the past, can be a double-edged sword.

He says such petroleum windfalls can become easy substitutes for strong economic fundamentals in good times, leading to much bigger problems when the prices crash.

Saher says long-term forecasts looking decades down the road, such as used in Norway, help keep government spending on track as a constant reminder that oil resources will run out and that planning for a post-oil future is critical.

Alberta has been running multibillion-dollar deficits due to a prolonged slump in oil prices.

10 to 15 metres

Red Deer residents concerned with increased building heights in new Zoning Bylaw

51m ago

Byelection April 22, 2024

Advance voting for Red Deer's byelection runs April 18-20

15h ago

family physician

New doctor working at Easthill clinic in Red Deer

15h ago

Saher says Alberta risks not capitalizing on its remaining oil and gas revenue if governments take a short-term view in future planning.

Finance Minister Joe Ceci says in response that the province has a six-year plan to erase its budget deficit, but opponents say it’s based on questionable assumptions, including construction of the Trans Mountain pipeline.

(The Canadian Press)