In his first quarter fiscal update, Alberta Finance Minister Joe Ceci said the province was set to record a $5.9 billion deficit this year – as the oil crunch impacts families and businesses.
Ceci released figures that were from the first months of the 2015 to 2016 fiscal year – that started on April 1.
“The first quarter results show we have to make difficult choices,” Ceci said.
Unemployment in Alberta is at 6 percent – meaning about 139,000 Albertans are out of a job. Meanwhile, revenue is higher at $44 billion – up $1 billion.
Expenses are up – at about $50 million. That increase is due to disaster assistance for wildfires and floods.
In total, the province said Alberta’s deficit is at $5.9 billion - $814 million higher than expected, and it could get worse.
Meanwhile, the opposition says the deficit released by the government isn’t correct, claiming the deficit is actually $9 billion.
Finance Critic Derek Fildebrandt accused the government of using ‘voodoo economics’.
“No doubt the PCs left a mess behind, but instead of making excuses the NDP government needs to fix that,” Fildebrandt said.
Despite the deficit, Ceci pledged the public sector would be protected.
“Businesses are going through tough times, and conservatives would fire thousands of people including teachers and nurses,” Ceci said. “We are not going to do that.”
The numbers given Monday might drop in the next update as the price for oil in North America fell sharply in August.
It’s not clear when the NDP government’s first budget will be tabled – the legislature will resume October 26.
With files from CTV’s Serena Mah and The Canadian Press
