Alberta’s budget picture looking rosier, but gains to be offset by flood costs

EDMONTON – Finance Minister Doug Horner says Alberta’s economy is doing much better than expected this year, but he says those gains will be offset by the costs of flood reconstruction.

Horner made the comments as he revealed figures at the halfway point for the current budget year.

The province had expected to run a deficit in day-to-day operational spending this fiscal year, but Horner says due to higher oil royalties, they’re now running a $1 billion surplus.

But Horner says even with the extra cash, the year-end budget figure for day-to-day spending will be about even due to flood spending.

Alberta expects to pay about $4 billion for the devastating floods that hit southern Alberta in June.

Opposition critics say given the fact the province is now borrowing money to pay for infrastructure, the true consolidated deficit number for this budget year will actually be more than $2 billion.