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Alberta deficit higher than expected
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CBC News-
Alberta will end the year in the red with a $3.1 billion deficit, predicts the province's second-quarter budget update.
Natural disasters, market volatility and economic uncertainty in the United States and Europe will combine to leave the province with a deficit $1.7 billion higher than predicted three months ago.
The deficit is more in line what the province expected in when it drew up the 2011-2012 budget more than six months ago.
Finance Minister Ron Liepert was quick to point out that overall, Alberta's economy is in "excellent shape."
The provincial economy is forecast to grow by 3.5 per cent this year, unemployment is falling and the province continues to add jobs, he said.
Part of the deficit can be blamed on crisis spending, said Liepert.
The province spent $586 million on emergencies and disasters, most notably the Slave Lake wildfire, which alone cost the province $159 million.
The province also restored $107 million to classrooms, an amount sliced from education budget by former premier Ed Stelmach.
While spending is up, so is revenue, largely because of record Crown-land lease sales.
That's expected to bring in $3.3 billion, surpassing last year's record amount.
The deficit leaves the government with some tough decisions to make, as Premier Alison Redford wants to balance the books within two years, said Liepert.
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