On the Rebound: Alberta forecasts much smaller 2021-22 budget deficit of C$7.8 bln

Strong global crude prices, increasing oil production, lower unemployment and increased exports helped Alberta revenues climb more than expected.

The province said it made the previous budget forecast during high uncertainty about the trajectory of the COVID-19 pandemic and pace of the vaccine rollout and Alberta’s economy was recovering faster than expected, but warned there could be more volatility ahead.

“We will continue to bring spending in line with that of other provinces, attract more investment and get Albertans back to work,” Finance Minister Travis Toews said in a statement.

Alberta’s gross domestic product (GDP) is expected to grow by 6.7% in 2021, up from the budget forecast of 4.8%.