Coronavirus may force government to ditch balanced-budget plan: Alberta premier

EDMONTON — Premier Jason Kenney says the novel cornonavirus outbreak is hammering Alberta’s economy and may force his government to abandon its core election promise to balance the books by 2023.

Kenney says its appears the virus is setting off a global economic downturn, which could affect prices for the oil that underpins Alberta’s economy.

He says if the virus affects the economy long term, his United Conservatives may not be able to meets their promise to end  multibillion-dollar budget deficits by the 2022-23 budget.

Kenney says his government intends to keep spending flat in health and education while reducing operational spending by less than three per cent.

Opposition NDP finance critic Shannon Phillips says Kenney’s government was never going to balance the books, given that it cut corporate income taxes and set a budget based on wildly optimistic oil price forecasts.

Alberta’s deficit is $7.5 billion this year and is expected to be $6.8 billion in 2020-21.

This report by The Canadian Press was first published March 6, 2020

The Canadian Press