This release was issued under a previous government.
Compared to last year, 42,000 new jobs were created in the province. Average weekly earnings remain strong and manufacturing sales are up 8.5 per cent.
The deficit has dropped by $1.3 billion since Budget 2018 with the $500 million risk adjustment remaining in place to protect against price volatility. As a result, our government remains on track to balance the budget as planned in 2023.
However this recovery faces a serious threat from the differential. Inadequate pipeline capacity and inaction by the federal government on crude by rail has led to a widening differential. The decline in the price of Western Canadian Select (WCS) over the past months has weighed on Alberta’s economic outlook.
“The Alberta economy continues its second year of recovery with 42,000 jobs created. The deficit continues its decline and we are on track to balance in 2023-24. But our recovery is at risk due to the punishing differential. This is a crisis. Albertans and working Canadians cannot afford to leave $80 million on the table every day. It doesn’t make sense and, if the differential is not addressed, our entire country could be plunged into a downturn. This is a national issue and it’s time Ottawa stepped up and pitched in.”
Fighting to get full value for Alberta oil
The Canadian economy is losing more than $80 million a day due to the differential. The Government of Alberta is committed to achieving market access and getting full value for Alberta oil.
“We’re fighting for the Albertans who are struggling because of the punishing differential. We’re going to keep pressing the federal government. And if they won’t act, we will.”
2018-19 Second quarter forecast ($ millions)
Full-year forecast |
Budget 2018 |
Q2 forecast |
Change from Budget |
|
Income taxes |
15,938 |
16,318 |
380 |
|
Non-renewable resource revenue |
3,829 |
5,322 |
1,493 |
|
Other revenue |
28,113 |
27,965 |
(148) |
Total revenue |
47,879 |
49,605 |
1,726 |
|
Operating expense (excluding CLP) |
47,765 |
47,886 |
121 |
|
Climate Leadership Plan operating expense |
1,035 |
1,029 |
(6) |
|
Disaster/emergency assistance expense |
206 |
459 |
253 |
|
Other expense |
7,175 |
7,243 |
68 |
Total expense |
56,181 |
56,617 |
436 |
|
Risk adjustment |
(500) |
(500) |
- |
Deficit |
(8,802) |
(7,512) |
1,290 |
Energy and economic assumptions |
Budget 2018 |
Q2 forecast |
Change from Budget |
|
WTI (US$/bbl) |
59.00 |
64.00 |
5.00 |
|
Exchange rate (US¢/Cdn$) |
80.0 |
77.50 |
(2.5) |
|
Real GDP growth (%) |
2.7 |
2.5 |
(0.2) |