NDP projects $10.8 billion deficit, down from $10.9 billion in last forecast

The NDP government is calling its latest deficit forecast a ‘small, but measurable improvement,” pegging the hole at $10.8 billion.

Finance Minister Joe Ceci made the announcement Monday in the province’s second quarter fiscal update, saying it’s down from the $10.9 billion projection from three months ago.

“The oil price collapse is still reverberating throughout our economy, too many Alberta are out of work, too many families worry about paying the bills,” he said. “But it’s also the case as this update shows that the province’s economy is now showing signs of stability.”

The projected price of a barrel of oil is still pegged at $45 and Ceci said he will continue to maintain the $700 million risk adjustment built into the budget for protection against oil prices.

“I’m simply not prepared to book any of that money against our deficit,” he said.

Ceci also announced 25,000 jobs in the last quarter, with the oil and gas, manufacturing and service sectors seeing improvement.

However, there’s also been thousands of job losses in that time as well.

“Some things are improving and some things are challenged,” he said, but added the estimate of 2.3 per cent increase in GDP growth next year should result in strength for all sectors.

Ceci was also asked about his concern considering many of the 25,000 jobs added are part-time and said he expects more full-time hires in the near future.

But Wildrose Leader Brian Jean pointed to the $14 billion drop in net financial assets and annual debit increasing to over $11 billion, nearly $700 million more than was forecast in the budget.

“No one is blaming the NDP government for the price of oil, but their financial and economic policies continue to drive our balance sheet into the ground,” Jean said in a release. “Despite overall revenue increases, our deficit and debt is higher today than the NDP promised last April. Without changing course, the NDP government’s budget will continue to take Alberta in the wrong direction.”

Government revenues are higher, at $1.3 billion, but expenses are too, at $1.7 billion, which Ceci attributed to the ongoing cost of the Fort McMurray wildfire recovery.

Interim PC Leader Ric McIver said the NDP is not making effort to reduce spending enough, adding there’s a $33 million increasing in operating debt service costs, with Albertans paying more than $1 billion in interest.

“When Albertans take on debt, they have to have a plan to pay it back,” McIver stated. “The fact that this government continues to borrow billions on behalf of Alberta taxpayers while having no plan to pay it back tells us everything we need to know about the NDP’s ability to be responsible fiscal managers.”