Alberta unveils $5.2 billion deficit budget; economy back in crisis

 

 

Amidst US President Donald Trump's tariff threats, Alberta Finance Minister Nate Horner unveiled this year's provincial budget. The budget has been presented with a deficit of $5.2 billion for this fiscal year, with a total expenditure of $79 billion. With this, there is a sign that the province's economy is heading back into crisis.

The minister says that the reasons leading to the crisis are the expected decline in oil prices, the need to raise money in the event of US tariffs destroying the economy, and the personal income tax relief of more than $1 billion for Albertans. This is the first deficit budget under United Conservative Party Premier Daniel Smith and the first since the COVID-19-era budget. The province is forecasting a multi-billion dollar deficit that will persist until the 2027 provincial election.

The province expects the deficit to approach $9 billion if U.S. President Donald Trump imposes a long-term 25 percent tariff. The minister said the deficit would be a third of that, about $3 billion, without tariffs.