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Collapse in Oil Revenue Leads to Historic Alberta Deficit

“Resource revenue is expected to fall to levels not seen since the 1970s as Jason Kenney’s UCP government announces deficit projections $16.8 billion higher than previously forecast”

“Alberta is projecting a historic deficit for the 2020-2021 fiscal year as resource revenues decline to levels not seen in decades.

In a first quarter fiscal update, Finance Minister Travis Toews gave Albertans a closer look at the combined toll on provincial coffers of what he called a “triple black swan event”: the COVID-19 pandemic, the ensuing global economic crisis and the collapse of oil prices.

The deficit is now projected to be $24.2 billion — $16.8 billion higher than government estimates in the 2020 budget released in February.

The increase is largely due to a major decline in government revenue, which is now projected to be $11.5 billion lower than estimates in the budget. Revenue from non-renewable resources is expected to be $3.9 billion lower, while income tax revenue is expected to be down $4.3 billion.”

Ainslie Cruickshank reports for The Narwhal August 27, 2020.