Premier Danielle Smith’s recent announcement that Alberta may be heading for a budget deficit in 2025 is troubling news for families and businesses in communities large and small, including in this region.
Whether the shortfall actually happens and what impact it may have on services remains to be seen. What is known is that the possibility that Alberta may fall into a deficit position should prompt immediate government action.
Premier Smith says that lower-than-forecast oil prices, coupled with other pressures, could lead to the deficit next year.
“It’s a serious problem,” said Smith. “We have a number of different pressures coming our way and we have to be honest with people about what we are facing.”
Finance Minister Nate Horner added, “It’ll be a sincere challenge if there isn’t an uplift in the overall forecast for oil, coupled with population growth pressures that we’re seeing on the spending side.”
So far, the premier has declined to say how a budget deficit might impact her 2023 campaign promise of tax cuts for Albertans.
NDP leader Naheed Nenshi said, “If, in fact, we are in deficit . . . then we are going to see massive cuts to the services that Albertans need at a time where things like education and health care are already incredibly underfunded.”
While the Smith government cannot do anything about the price of oil, Albertans expect it to take action to address the threat of a possible budget deficit.
Specifically, the government needs to focus its spending on Alberta’s primary and pressing needs, including on schools, hospitals and critical infrastructure.
As the same time, maybe the Smith regime should put an end to its current practice of spending millions and millions of taxpayer dollars fighting political battles outside the province, including on lawsuits and public relations campaigns aimed at federal government policies and programs?
With Alberta facing a possible budget deficit, families and businesses have a right expect the provincial government to start focusing on the job it was elected to do.
Dan Singleton is an editor with the Albertan.
