In the third quarter update, the total non-renewable resource revenue forecast is down $503 million from budget, mainly due to plummeting oil prices. Bitumen royalties have taken the biggest hit, and are expected to drop $644 million from budget to year end, with other revenue streams showing slight increases.
“We have taken steps to protect our financial position that will help keep us in the black this year. Contract settlements made by previous administrations and significantly lower resource revenues have created a very challenging fiscal outlook for Alberta. This requires a reset of our fiscal foundation to address a $7 billion revenue gap.” Jim Prentice, Premier
World oil prices, which have fallen more than 50 per cent since June 2014, are drastically impacting government revenue and dampening the pace of Alberta’s economic growth.
For more information please click on the Government of Alberta media release.