Alberta will record a wider budget deficit in the fiscal yearthat began Apr. 1 because of declining revenue from oil, FinanceMinister Doug Horner said in a Bloomberg report.
The deficit will widen to a range between $2.3 billion and $3billion, up from an original forecast of $886 million, Horner saidon a conference call with media from the provincial capital ofEdmonton. The province's outlook for oil has been cut to an averageof $92.75 a barrel from an initial forecast of $99.25 on Feb. 9,government documents show. Oil has averaged $92.42 Since April1.
"My mandate is to have a balanced budget in 2013-14," Hornersaid. "That's my target and that's where I'm headed." Theprovincial economy is set to grow by 3.8% this year, according to agovernment document, with a budget surplus of $952 million forecastfor the 2013-14 fiscal year.
Alberta posted a deficit of $588 million in the first quarter ofthis fiscal year, higher than the initially forecast $194 million,on lower oil royalties and taxes due to price declines for thefossil fuel. The government gets a third of its revenue fromroyalties and taxation of the oil and gas industry.
Alberta is home to the world's third-largest oil reserves after Saudi Arabia and Venezuela.
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