A big drop in resource revenue is getting most of the blame for Alberta’s growing deficit.

During his second quarter fiscal update, Finance Minister Doug Horner stated the projected deficit is still expected to come in between $2.3 and $3 billion.

The biggest reason why Alberta is cash poor is because the province only has one customer for its oil and it’s not getting world oil prices from our shipments south of the border.

“Right now the difference between the world price for a barrel of oil and what our producers can get for Alberta bitumen is about $28,” Finance Minister Doug Horner said. “Multiply that by 2.5 million barrels a day and the math adds up very quickly.”

Despite the deficit, Horner said the government will proceed with plans to borrow to build hospitals, school and roads and bridges, because that is what Albertans want.

He added government agencies have been told to find $500 million in savings and the 2013 budget will include detailed operating, savings and capital plans.