Finance Minister says Alberta is on track cut deficit

Despite the loss of hundreds of millions of dollars in royalty revenues, Finance Minister Ted Morton claims the province is still on track to slay the deficit by 2012-13.

Both Wildrose Alliance leader Danielle Smith and University of Calgary Economist Dr. Frank Atkins have their doubts.

Morton figures instead of a surplus of $500-million in three years, the amount will be reduced to $140-million.

The Stelmach Tories figure the treasury will take a $785-million hit from reduced royalties in 2012-13, but the red ink will fall to $363-million thanks to increased land sales, taxes, and oilpatch activity.

The government is projecting a $4.7 billion deficit for the coming budget year, but Smith has her doubts, saying the Tories have not given any indication of reining in spending.

Atkins speculates the actual deficit is closer, to $7-billion thanks to accounting procedures for capital projects.