Alberta's government has announced that the province's budget deficit is projected to hit $6.5 billion. This figure is $1.3 billion higher than what was initially budgeted in the spring. The increase in the deficit is attributed to lower-than-expected oil prices, which have significantly impacted the province's revenue.

During a news conference, Finance Minister Nate Horner highlighted the dramatic change in Alberta's financial outlook. "I want to acknowledge that this is a big shift from the $8.3-billion surplus we had at the end of March just five months ago," he said. The decline in resource revenues has been a major factor in the budget shortfall. However, the province has seen some improvement in other areas, such as corporate income taxes, which have provided a slight offset to the losses.

The fiscal update reflects the challenges Alberta faces as it navigates fluctuating oil prices. The province's financial health has been closely tied to the performance of its oil sector, and recent trends indicate a downturn. The government is now tasked with addressing the implications of this deficit while managing public services and investments.

In addition to the current fiscal challenges, the update includes a comparison of Alberta's budget balances over the past decade alongside the prices of West Texas Intermediate and Western Canada Select oil. This context helps illustrate the volatility of the province's financial situation in relation to global oil markets.