Alberta Premier Danielle Smith anticipates substantial deficits for the province due to low oil prices but has dismissed tax increases and major service cuts.
Alberta's Premier Danielle Smith has announced that the province is facing 'significant' deficits largely attributed to the drop in oil prices. As Alberta approaches the unveiling of its new budget, she has declared it will be a challenging fiscal plan. Smith emphasized the government's commitment to maintaining essential services while simultaneously grappling with the financial realities posed by decreased revenue from oil royalties.
During an interview with RED FM Calgary, Smith stated that while the province would focus on critical areas such as health care, education, and support for vulnerable populations, they cannot afford to do everything at once. The premier ruled out tax hikes and deep cuts to services, indicating that this strategy could protect Albertans from immediate financial strain. However, the acknowledgment of running multiple deficits highlights the challenging economic landscape the province is navigating.
As of November, projections indicated a staggering $6.4-billion deficit for the ongoing budget year, driven largely by lower-than-expected oil prices. With the average price of West Texas Intermediate oil falling to US$61.50 a barrel, Alberta's government is confronted with tough decisions ahead as it strives to balance fiscal responsibility with the needs of its residents.
