Only three years of deficits? I somehow doubt this will end that quickly since the recession is just starting. I can’t imagine what red ink the other provinces will soon be drowning in.
The budget predicts three years of deficits, largely due to a $4.4 billion decrease in oil and gas revenue from what was forecasted in the current year’s budget. Non-renewable resources make up 23 per cent of the province’s current revenue.
The price of a barrel of West Texas Intermediate oil, the benchmark Alberta uses for budgeting, is estimated at $68 US in 2025-26. That’s a drop of $6 from the previous year’s budget.
This is the first deficit budget for an Alberta government since the 2020-21 fiscal year, presented during the early days of the pandemic.
This is grotesque.
The gov’t of the day in AB has no real idea how bad it’s going to be. Yet the other parties which could be in gov’t here are worse in every way. I have difficulty believing this is as good as it can be.
My advice … and I’m the LAST “investor advisor” you should ever listen to … it’s time to go to ALL cash.
Why?
Because Corporations who have gotten FAT on the government Corp. welfare teat are getting cut off
Because the Military Industrial Complex is about to go WAR-vacant for the next 4 or more years
Because a big chunk of Big Pharma funding via Medicare/Medicaid FRAUD is about to go bye bye
Because the FED is returning to tightened monetary policy (high interest rates) to punish Trump
Because Corporate America will continue to inflate prices … to punish Trump
Every part of our society will be pushing back on Trump to ensure “the businessman” POTUS FAILS … so they can return to the Swamp-as-usual
Cash?
No. Governments devalue fiat currency at their convenience.
Kenji, the Fed controls the overnight rate only, they have zero effect on any other interest rate, that is the bond market. Mortagages, other than variable, car loans, business loans all are independent of the Fed.
Under a worst case scenario the budget deficit could swell to 8.7 billion?? Put your citizens in penury when the solution is so simple, one call to Washington no tariffs, no more central Canada BS, how would they not do it? Government is supposed serve its citizens, what a service to jump from tier 3 Canada to the number 1 country in the world.
Problem: Smith never put any effort into cutting. Alberta has always been a bloated govt. Start heavy cutting and start reducing taxes. Chase away the parasites and attract the productive. Simple.
Or just keep doing Canadian type things. Whatever. (love you for other things Danielle, but you can’t keep spending like this)
51 or bust!
Wait until Captain Canada Carney (CCC) says we must all sacrifice for Canada! Which means cutting off 300 million of petroleum exports per day. After all, it is all for Canada!
Meanwhile, Jacques de Creme, holder of industrial milk quota from Quebec, while spending his usual six months in Coral Gables, Florida, couldn’t possibly be expected to sacrifice a dime. After all, it is imperative that he be able to overcharge for substandard cheese.
If you don’t stand up and protect him, Quebec will leave! Quebec will leave! And stop their parasitism? Allez S’il vous plait! Tout de suite!
Best possible thing that could happen out of this mess, next to Albertans waking up and growing to realize they’re being s06om!2ed every single day
Well Carney can try but it is relatively easy to get around. And even if he did, Ontario would be cut off from Canadian oil coming up from the U.S.
December 2025 WTI options are trading at $66.50 today, so already they are below their target price, and -27 looks even worse at the moment. How screwed are they at $55 WTI?
It PO’s me to no end when they say NF has a lot at stake with energy too, their oil is seaborne by it’s nature, pretty easy to open new markets when it starts out on a tanker.
Oil prices ar going to $40 and some smsrt folks say to $14. This year. What’s the plan for that?
https://longforecast.com/oil-price-today-forecast-2017-2018-2019-2020-2021-brent-wti
Smith missed her opportunity to govern boldly. A little better than Kenney but we’ll short of what’s needed.
5.2 billion is nothing really. Alberta has 340 billion GDP and a 95 billion dollar debt (thanks NDP).
Danielle should double the tax cut.
Or?
Alberta could copy Quebec.
Collect her own taxes and withhold the “Federal share” until the feds prove they are providing the services they claim these monies for.
Much of the power inbalance could be solved,simply by the Provinces doing their job.
And 20 billion per annum might be chump change in Dear Leader’s eyes,in Alberta it could do so many things..
That’s not how that works. The Quebecois still have to file with the CRA for the federal portion. Only the provincial portion goes to Quebec directly.
Québec is the only province in Canada where residents must file 2 separate tax returns— one federally, (T1) to the CRA, and one provincially, (TP1) to Revenu Québec (RQ).
As with historic weather forecasts, it’s difficult to find historical data for crude oil forecasts, in order to measure the forecasters batting average.