Relative strength
Good news: Alberta's projected fiscal deficit for 2011-12 has been trimmed, according to recent government estimates.
by Max Fawcett
By Max Fawcett, Managing Editor
In Europe it’s been one sovereign debt crisis after another, and it now appears possible – if not probable – that France may be the next country in the crosshairs. In the United States, meanwhile, the so-called “Supercommittee” managed to meet everyone’s lowered expectations by announcing that it was unable to strike a debt-reduction deal.
Here in Alberta, though, the beat just keeps going on. In its second-quarter update on the budget – and the first under new Premier Alison Redford – the province announced that it forecasts a $3.1 billion deficit for the 2011-12 fiscal year, a $341 million improvement over the estimates in its budget documents.
The reason, not surprisingly, is strengthening global oil prices. The province now expects revenues from nonrenewable resources to exceed $10 billion, a 22 per cent improvement over its budget estimate of $8.32 billion. Whether those numbers will hold up under the pressure of the various debt crises being played out across the western world remains to be seen.
Follow Alberta Venture On: