The Alberta government said they would continue to take a cautious approach despite forecasting a $500 million increase to the deficit - putting that figure at $10.9 billion.
During a news conference on Tuesday, Alberta's Finance Minister Joe Ceci said that the oil price collapse continues to reverberate through the provincial economy – but the wildfire in the Fort McMurray area also had a major impact.
Ceci said the wildfires in the Fort McMurray area had a fiscal impact of around $500 million (the province said the impact is as follows: $647 million in disaster relief assistance, minus $452 million in federal transfers, plus $300 million in lost revenue.)
The province said the revenue forecast has increased, due to an updated forecast for the West Texas Intermediate oil price. Forecasted revenue has increased by $708 million, as the forecasted price of oil has gone up from $42 per barrel, to $45. Also affecting the revenue are higher-than-expected federal transfers, which include $452 million in disaster assistance.
The Finance Minister suggested that it's not the time for the province to make knee-jerk cuts, which would just make it worse for Alberta. Ceci went on to suggest that if the government stays with the fiscal plan, that the province will be fine.
The Wildrose opposition called out the government for continuing to make things worse for Albertans by dragging down the economy.
With files from Bill Fortier
