Danielle Smith says significant deficits are coming and rules out tax hikes

Alberta Premier Danielle Smith said lower oil revenues will force the province to run significant deficits and that she will not raise taxes or make deep service cuts; the government's budget is scheduled to be unveiled later this month.

Alberta Premier Danielle Smith said the province will face significant deficits as it manages lower oil revenues. She told RED FM Calgary she has ruled out raising taxes or making deep service cuts and said the government will continue to prioritise health care, education and supports for vulnerable people. The government’s new budget is scheduled to be unveiled later this month and Smith said it will be difficult. A November provincial update had forecast a $6.4-billion deficit for the current year based on a lower West Texas Intermediate price. Key facts: - Premier Danielle Smith said the province expects to run multiple deficits because of reduced oil royalty revenue. - She ruled out tax increases and deep service cuts while saying core services remain priorities. - A November forecast put the current-year deficit at $6.4 billion using a WTI price of US$61.50 per barrel, down from the budgeted US$68 per barrel. - The budget is to be tabled later this month and Finance Minister Nate Horner said specifics cannot be released before it is presented. Summary: The reported shortfall reflects the province's reliance on natural resource revenue and the government's plan to accept deficits rather than raise taxes or impose deep cuts. Opposition leader Naheed Nenshi criticised the government's fiscal record and cited earlier spending controversies. The next scheduled step is the formal budget presentation later this month.