The provincial government announced a higher-than-projected surplus in its quarterly fiscal update this week.
Local MLA and Finance Minister Doug Horner delivered the news during a Wednesday press conference.
“I’m happy to say we’re doing very well,” Horner said.
The results of the first quarter of this fiscal year show an operational surplus of $2.6-billion. The projections for the rest of the year are now forecasting a $1.4-billion surplus for the full fiscal plan, and an operational surplus of $3.2-billion.
Horner said revenue has gone up mainly due to higher energy forecasts and corporate income taxes. Expenses are up as well.
Horner insisted the original numbers forecasted in the budget were in tune with private sector forecasts, and it “looks like we all should have been a bit more bullish.”
The result of the increased surplus means borrowing for infrastructure will be decreased to a predicted $2.1-billion, down from an expected $4.9-billion.
Horner countered expected opposition party criticism during his press conference by saying that, “no matter how you analyze the numbers” the provincial government’s strong financial position doesn’t change.
Opposition parties have cried foul on the projected surplus, criticizing the fiscal update’s new format and decrying the claims of surplus.
Horner explained the new format, saying it incorporated feedback from the auditor general. New features are forecasts for expected year-end results on both the fiscal plan and consolidated financial statements and included a full year forecast to compare to the budget.
During the news conference Horner was peppered with questions about his future as finance minister in light of expected changes once the new premier is selected in a few weeks time as the Progressive Conservative leadership race comes to a close.
Asked if he had any thoughts about this possibly being his last fiscal update, Horner said “no, not really.”
When asked if Jim Prentice, who is considered the front runner and who Horner supports, had promised to keep Horner in the finance portfolio, Horner said none of the leadership candidates have given him any kind of commitment.
