Finance Minister Cathy Bennett announced that the provincial deficit now stands at $1.58-billion compared to the $1.8-billion deficit this Spring.Total revenue has improved by $217 million since Budget 2016 and the risk adjustment has been reduced. Oil prices and production have been higher than anticipated; however, volatility remains.
Program savings of more than $110 million have been offset by increased debt servicing expenses of $130 million. These changes are a result of the most current assumptions of pension and post-employment benefits from the province’s actuary.
The Provincial Government’s borrowing requirements for fiscal 2016-17 were estimated at $3.4 billion. The amount has been reduced to $2.9 billion due to higher revenues and deferred cash-flow from infrastructure projects.