Provincial deficit settles at $1.22B
As the government closes the books on the 2016-17 fiscal year, the bottom line is the province has a $1.22-billion deficit — $914 million higher than budgeted for the year.
“Our deficit was relatively on track from what we forecast back on March 22 when I delivered the budget and indicated a deficit in the neighbourhood of $1.2 billion,” said Finance Minister Kevin Doherty, following the release of the Vol. 1 of the province’s public accounts on Friday.
Forecasted revenues were down about $400 million, primarily in taxation and non-renewable resources, and expenditures were about $500 million more than budgeted, he said. The province’s debt climbed by $2.29 billion, to $10.19 billion.
NDP MLA Carla Beck faulted the government for its projected oil prices.
“There is a real concern about the planning that went into this budget,” Beck told reporters.
It’s a problem that could come up again. The province formulated the 2017-18 budget based on oil selling for around $56 a barrel. Since the release of the budget, oil prices have been sitting around $45/ barrel. But Doherty is encouraged by activity in the oilpatch.
“Even at $44 or $45 per barrel, we’re seeing some additional drilling going on this year — much higher than we’d anticipated.”
Doherty is confident in the plan to get to a balanced budget in 201920 — “all things being equal.”