Alberta is betting that the recent dip in oil will be temporary and that higher crude prices will allow the province to shrink its deficit while raising spending.
The deficit will narrow to C$10.3 billion ($7.7 billion) in fiscal 2017-18 from C$10.8 billion in the current fiscal year as economic growth in Canada’s energy province rebounds to 2.6 percent after three years of contraction, according to budget documents released on Thursday.
“Its clear, Alberta’s economy is set to grow,” Finance Minister Joe Ceci said in a speech before the legislature in Edmonton. “Our energy industry is on more solid footing. Drilling is increasing, with twice the number of rigs active compared with this time last year. And jobs are starting to come back.”