Alberta headed for record deficit

[Azure]

EDMONTON — The Alberta government remains on course for a record deficit this year, but there is now a bigger cushion for the red ink thanks to stronger-than-expected finances from the previous year.

The government on Wednesday unveiled its first-quarter update to the 2010-11 budget, projecting a deficit of $4.76 billion that's virtually unchanged from original estimates.

To cover the deficit, the province is dipping into its sustainability fund, the value of which was expected to drop from $14.9 billion to $8.2 billion by year-end.

Now, that fund is expected to decline only to $11.2 billion, due to some economic good news the province received at the end of last year's budget cycle. Thanks to soaring bitumen prices and a better performing Heritage Fund, that year's projected deficit came in at $1 billion, less than a quarter of what was initially predicted.

http://www.vancouversun.com/business...#ixzz0xeVQSCFb

[Resolute 14]

Thanks Ed!

[Tron_fdc]

Sandbaggers!

[WilsonFourTwo]

I believe that the title should read "Alberta headed for new government".

[Resolute 14]

Originally Posted by WilsonFourTwo

I believe that the title should read "Alberta headed for new government".

Indeed. Ed and co are probably thanking god that they have two years to get out of this mess before they have to drop the writ.

[mykalberta]

Thanks Vancouver Sun, what is BC budget headed for?

[FireFly]

Originally Posted by Resolute 14

Indeed. Ed and co are probably thanking god that they have two years to get out of this mess before they have to drop the writ.

Rumour has it they won't wait that long though. All signs point to one in the next 8 months. YAY!

[troutman]

Originally Posted by mykalberta

Thanks Vancouver Sun, what is BC budget headed for?

My clients just bought a property in BC. They have to pay $11,000 as a "property transfer tax". Welcome to BC!

[Canada 02]

so Alberta has a a $4.8B deficit, but they have a ~$15B rainyday account to wipe out the deficit. To bad every province/state/jurisdiction didn't have that problem

[DownhillGoat]

Originally Posted by troutman

My clients just bought a property in BC. They have to pay $11,000 as a "property transfer tax". Welcome to BC!

And the HST! Yay!

[MarchHare]

Originally Posted by mykalberta

Thanks Vancouver Sun, what is BC budget headed for?

The article was originally written for the Edmonton Journal and was re-published by the Vancouver Sun (both papers are owned by Postmedia, formerly CanWest Global).

[WilsonFourTwo]

Originally Posted by Canada 02

so Alberta has a a $4.8B deficit, but they have a ~$15B rainyday account to wipe out the deficit. To bad every province/state/jurisdiction didn't have that problem

A rainy day fund that should be so large by now, the interest alone would have swallowed this year's $4.8B deficit. That fund should be upwards of $50-$100 Billion at this point.....

[mykalberta]

Is the rainy day fund an actual fund or is it the "Heritage Fund" ?

I seem to remember it being valued around 15B - if thats the case then they should not be using it for this IMO (cant trust the kids with the cookie jar).

[bizaro86]

Originally Posted by FireFly

Rumour has it they won't wait that long though. All signs point to one in the next 8 months. YAY!

Are they so out of touch they think they would win an election held now?

Michael

[albertGQ]

Originally Posted by mykalberta

Is the rainy day fund an actual fund or is it the "Heritage Fund" ?

I seem to remember it being valued around 15B - if thats the case then they should not be using it for this IMO (cant trust the kids with the cookie jar).

I beleive there is a sustainability fund and a Heritage fund

[SebC]

I still don't see the PCs losing the next election. People were saying they were in trouble before the last election, and we know how that panned out.

[Ashartus]

Originally Posted by bizaro86

Are they so out of touch they think they would win an election held now?

Michael

The latest polls I've seen seem to indicate they could, though definitely not a sure thing. They might be saved by WAP being too far right for a lot of people, and the Liberals having been pretty ineffective lately (not to mention having a name that is pretty much a swear word in Alberta). The Conservatives might want to call an election early before either of the main opposition parties can sway any more people.

[FireFly]

Originally Posted by bizaro86

Are they so out of touch they think they would win an election held now?

Michael

Actually they believe that the WAP isn't ready for an election and they should avoid allowing them to prepare.

[Resolute 14]

Originally Posted by SebC

I still don't see the PCs losing the next election. People were saying they were in trouble before the last election, and we know how that panned out.

I don't either, but I do expect the WRA to win enough seats to put the fear of god into them. Having a legitimate opposition would benefit this province greatly.

[Olao32]

Originally Posted by FireFly

Actually they believe that the WAP isn't ready for an election and they should avoid allowing them to prepare.

That’s probably true. While I like many things that the WAP stands for, I am undecided if they are ready to take the reins and run the province.

Historically, (except for the last provincial election) I vote Conservative through and through. However, sadly, I am unable to stand behind a party who supports a leader that drove this province into a financial and operational decline even before the recession hit. His business ignorance, and complete lack of personality make him a very unlikable and ineffective PM in my opinion.

Unfortunately, the majority will blindly vote blue just as they always have, without thought to choice. I would suspect, if they did hold an election in the near term, regardless of what the polls tell you, the Torys will once again walk away with a win...even with Incompetent-Ed.