Alberta's not in the red as much as expected.

Finance Minister Iris Evans, in her government's second-quarter fiscal update released Thursday morning in Calgary, now pegs the projected deficit for the 2009-10 year at $4.3 billion. That's $400 million lower than what was budgeted last spring, and well below the projected $6.9 billion deficit that was included in the first-quarter report.

 

Evans credits the improvement to increased activity in oil, oil sands, investment, and corporate tax revenue. As well, the numbers take into account $430 million in cuts to various government departments that were done through hiring freezes.

 

Despite the more rosy numbers, the government is still going ahead with finding $2 billion in cuts or savings. The hope is to have the province in the black in three years' time.(QR77/bp)

On the Net:
Finance.Alberta.ca