It’s early days but we’ve had two major provincial budgets tabled in the last few days and they are sending some not-so-pretty signals.
First out of the gate was Alberta, a province with a strong fiscal position and balance sheet. And it is projecting a budget deficit of more than $5 billion in the coming fiscal year, a sharp reversal from the current year which is in a surplus position.
Then came BC with a forecasted deficit of nearly $11 billion. It effectively threw out earlier projections which had called for deficits but much smaller than the now revised versions. It didn’t include the tariffs in its estimates but did set aside $4 billion for contingencies.
To put this in context, these two are among the best financial performers in the country.
So, what does that mean for us? An earlier RBC forecast had placed Saskatchewan in a ‘strong’ position as well, a province that was well positioned to withstand an economic slow-down but if our neighbors are any indication, fiscal 2025 will be a challenge.
