Alberta Fiscal Snapshot: Winter 2019
This “fiscal snapshot” looks at the state of Alberta’s economy and its government’s fiscal challenges, and provides a short- and medium-term outlook for the province.
- Alberta’s economic rebound has hit a bump—the unexpected collapse in oil prices that has dampened growth and revenue projections.
- A swift response from the provincial government has limited the impact of low oil prices on royalties and corporate tax revenues, but provincial coffers remain dependent on volatile resource revenues, which will be lower over the near term.
- Despite recent spending restraint, the Alberta government continues to spend at the second-highest per capita rate in the country.
- The province is expected to continue to run large deficits over the near term. While Alberta’s debt burden is small compared with other provinces, its rising debt levels and persistent deficits are unsustainable.