Alberta Premier Smith says lower-than-forecast oil prices could mean budget deficit

EDMONTON - Alberta Premier Danielle Smith says a potential budget deficit next year is not off the table. Her government’s 2024 budget initially projected a surplus of $367 million when it was tabled in February. Smith says that surplus was dependent on West Texas Intermediate oil prices averaging US$74 per barrel, but the price to start the week has been around US$68 per barrel.

She says the lower than projected oil price, coupled with other “different pressures” means a budget deficit is a possibility. Finance Minister Nate Horner says it’s too early to say for sure, but says posting a surplus will be a challenge. Smith wouldn’t say if a budget deficit means her promised income tax cut would be delayed further.



This report by The Canadian Press was first published Oct. 29, 2024..