EISEN and HILL: Smith government risks another period of major debt accumulation if oil prices decline

EISEN and HILL: Smith government risks another period of major debt accumulation if oil prices decline

According to the Smith government’s latest budget, the government will run a projected $5.2-billion deficit in 2025-26 ($1.2 billion, excluding contingencies), with additional deficits over the next two fiscal years — despite fairly strong projected resource revenue (e.g. oil and gas royalties). This means the government is not only missing out on a chance to improve the province’s fiscal foundation, it’s also putting Alberta’s finances in a vul…