February 27, 2002 Alberta weathers
global economic uncertainty in 2001-02
The update shows overall government revenue will be $1.5 billion lower than estimated in Budget 2001, mainly due to lower energy prices and reduced investment income. With the actions the government took in October 2001, program expense is $830 million lower than budgeted and the economic cushion will be reduced from a budgeted $817 million to $18 million. The accumulated debt, net of cash set aside for future debt repayment, is forecast to be at $6 billion by the end of the fiscal year. "We have always said that we will not spend money we don't have. Albertans want a fiscally responsible government that will keep taxes competitive, spend wisely, and not run a deficit. This update confirms that we have done exactly that," said Nelson. The Minister of Finance provided updated projections for this fiscal year showing the price of oil to average $23.75 US$/barrel, down from the Budget estimate but up from the Second Quarter and natural gas at $3.76 Cdn$/mcf, $1.27 lower than estimated at Budget 2001. The province estimates that, over the course of a year, every 10-cent decline in the price of natural gas means $142 million less in resource revenue and every dollar drop in oil is $153 million less.
Nelson added that the government must remain cautious and prudent as it prepares for Budget 2002 in March. Go to:
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