A good summary of the budget update from the Alberta Party:
http://abpartycaucus.ca/clark-says-n...ecord-deficit/
Quote:
Backgrounder
2016 Fiscal Year Q1 Update
Income statement deficit increased by $527 million to $10.9 Billion
Revenue increases by $708 million
Mainly due to higher WTI price
Personal income tax revenue is $215 million higher than budgeted
Corporate income tax revenue is $877 million lower than budgeted
NRRR is $744 million more than budgeted
Transfers from the government of Canada increased by $652 million from budget
Expenses increased by $1.2 Billion
$816 million is for wood buffalo firefighting and DRP expenses
$100 million is increased health expense
Mainly due to higher volumes for benefits programs, and increased drug costs
Balance sheet
Net financial assets dropped $14.5 Billion from 2015 FY
This is a $474 million decline from 2016 budget
Total debt is now at $32 Billion (was $30.5 Billion at budget)
Debt-GDP ratio increases from 9.9% in budget to 10.2%
Total debt was $20 Billion for 2015 FY
Capital Plan
Total capital plan increases by $245 million
Mainly due to re-profiling of funds from previous year
Debt Servicing Costs
Increased by $37 million from budget
Mainly due to increased borrowing due to cash position
Contingency Account
Cash position has significantly weakened
This is leading to an increase in borrowing from $5.4 billion to $7.1 billion ($1.7 billion more)
Decrease of $850 million in cash from budget due to timing differences between accruals and cash collections
Loss of $695 million in cash that was to be transferred from previous fiscal year
Economic Indicators
WTI projection has increased from $42/bbl to $45/bbl (7%)
Differential has decreased from $15.20/bbl to $14.10/bbl (-7%)
Crude production has decreased from 524,000 bbl/day to 468,000 bbl/day (-11%)
Bitumen production has decreased from 2,668,000 bbl/day to 2,557,000 bbl/day (-4%)
Exchange rate projection has increased from 73.5 USD/CDN to 77.0 USD/CDN (4.8%)
GDP decreased by 1.6% nominally, 3.6 % in real terms (accounting for inflation)
Average weekly earnings dropped 2 percentage points
Primary household income dropped 1.6 percentage points
Net Corporate Operating Surplus dropped 8.8 percentage points
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Corporate income tax down $877M despite raising the corporate tax rate. WHO OH WHO COULD HAVE FORSEEN THIS.....