Alberta is projecting a wider deficit for the current year as prices for oil drop, damaging one of Canada's top energy-producing provinces' key sources of income.
The deficit will rise to US$4.7 billion (C$6.5 billion) in the March year, C$1.3 billion higher than it was projected, the provincial government said Thursday. Behind the higher deficit is a C$1.4 billion reduction in non-renewable resource revenue from earlier projections.
Alberta oil sands produce much of the nation's crude, the world's fourth-biggest producer. Oil and gas royalty revenues are the province's second-biggest source of funds behind taxes, and non-renewable resource revenues. Alberta is forecasting the benchmark price of oil to average $63.75 a barrel this year, $4.25 less than budget forecasts, as U.S. tariffs reduce the global demand for energy and OPEC+ nations increase output.
Taxpayer-supported province debt will drop to C$84.3 billion at March 31, down about C$900 million from last year, as pre-paid debt that matures is retired. Net debt as a percentage of GDP at year-end stands at an estimated 8.7%.