Higher energy prices expected to deliver boost in Alberta budget update
Alberta's finance minister says the recent bullish run on energy prices is part of a stronger economic story on the province's bottom line that will be revealed in the upcoming second-quarter budget update.
Travis Toews says investment is gaining strength across a range of sectors, but he is not revealing details until the update is delivered Tuesday.
“Certainly, rising energy prices are part of the good news story for Alberta, there's no doubt about that, but tomorrow we can talk about a much broader recovery,” Toews told reporters at the legislature Monday.
“We're seeing improved investment attraction across many key sectors in the province.”
Toews introduced the budget back in February projecting an $18-billion budget deficit with West Texas Intermediate - the North American oil benchmark price - estimated to average US$46 a barrel throughout the year.
But both oil and natural gas, mainstays of Alberta's resource-based economy, have been enjoying banner years. That has prompted the province to adjust both revenues and projections.
In the first-quarter budget update in August, Alberta's West Texas forecast was raised to US$65 a barrel and the deficit projection halved to less than $8 billon.
Projected natural gas revenues more than doubled to $1.2 billion from February's budget.
Economist Trevor Tombe said up until last week West Texas was averaging US$71 a barrel alongside a price surge in natural gas to almost $3.60 a gigajoule - up substantially from the $2.60 gigajoule predicted at budget.
He said all that could mean an extra $2 billion on top of the $10 billion the province was expecting to receive from all non-renewable resources this fiscal year.
“Tomorrow we may very well see certainly above 10 (billion dollars), I think no question about that, but maybe 11 or 12,” said Tombe, a professor at the University of Calgary. “It depends how conservative the government wants to be (in its price forecasts).
“We're still in a time of pretty incredibly high uncertainty (given COVID-19), so all of these numbers should be therefore taken with a grain of salt.
“But it's nice that we've seen some really positive developments for Alberta in recent months,” Tombe added.
Opposition NDP finance critic Shannon Phillips said the government is benefiting from a rise in energy prices, but it still needs to present a plan to help families dealing with the double whammy of a 4.7 per cent rise in inflation to go with higher user fees, bills and insurance rates imposed under Kenney's United Conservative Party.
“It's time for Premier Jason Kenney (and) his finance minister to put their feet on the ground, get their heads out of the clouds and focus on what's actually worrying ordinary people,” said Phillips.
This report by The Canadian Press was first published Nov. 29, 2021.
CTVNews.ca Top Stories
Ottawa injects another $36M into vaccine injury compensation fund
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
'Secret report' or standard research? B.C. government addresses safe supply allegations
B.C.’s premier and one of his top lieutenants are pushing back against allegations by the Official Opposition that he covertly commissioned a report into the diversion of safe supply drugs onto the streets.
Video shows suspects waving weapons, smashing glass in Toronto jewelry store robbery
Arrests have been made after five men were captured on video rampaging through a jewelry store in Toronto, waving weapons and smashing glass display cases.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
She was too sick for a traditional transplant. So she received a pig kidney and a heart pump
Doctors have transplanted a pig kidney into a New Jersey woman who was near death, part of a dramatic pair of surgeries that also stabilized her failing heart.
What Canadians think of the latest Liberal budget
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Teacher shortages see some Ontario high school students awarded perfect grades on midterm exams
Students at a high school in York Region have been awarded perfect marks on their midterm exams in three subjects – not because of their academic performances however, but because they had no teacher.