In the Alberta government’s first quarter update it says revenues were up thanks to high oil prices.
Finance Minister Doug Horner says the budget predicted a $451-million deficit on day-to-day spending, but the province could end up in the clear.
“At first quarter we estimated that by the end of this fiscal year, operational results will be closer to being balanced, ranging from a surplus of $250-million to a deficit of $500-million.”
He says that he’s pleased that energy production is increasing.
But he says even though high oil prices have boosted revenue, because of the volatile energy market and pipeline constraints, nobody should get their hopes up.
“Given this reality and the fact that we’ve made a commitment to Albertans to live within our means, we will be holding the line when it comes to spending,” he adds, “other then for flood recovery and other disasters.”
He says so far they’ve spent $148-million from the $1-billion the government allocated for flood recovery.
But he says the final cost could come in near $5-billion.
He says the rebuild will drive up the province’s Gross Domestic Product.
“Reconstruction efforts through replaced or repaired managed property are estimated to add 0.2 percentage points in growth in 2013, and 0.4 percentage points in 2014.”
On the downside, he says it will more than likely drive up material and labour costs.
He says Albertans have submitted more than $1.6-billion in insurance claims following the June floods.
But, Premier Alison Redford warned the higher revenue doesn’t mean the government will reverse funding cuts laid out in this year’s budget.
August 29th, 2013
