from Wealth Cycles
In late August, Alberta’s Provincial Finance Minister Doug Horner shocked citizens with an announcement about the expected deficit for the 2012-2013 fiscal year. The announcement was shocking both because of its lack of substantive information and also because of the size of the projected deficit: $3 billion, nearly three times larger than previously estimated. The culprit: government’s inability to simply live within its means.
As recently as February 2012, the Alberta government had predicted a surplus for 2013-2014 of $952 million. So, what happened in only seven months, and why? According to Horner’s brief briefing, there were many factors that precipitated the change in fortunes for Alberta: