Alberta delivered its first quarter update today, which shows that revenues were higher than expected, helping it address the expected $5 billion in flood damages suffered earlier this year.
The province said that operational revenue in the first three months of the fiscal year was $9.9 billion, $211 million higher than expected, due to higher oil prices and investment income. Operational expenses were $9.2 billion, resulting in a $715 million operational surplus for the quarter.
However, it’s forecasting that its budget will be close to balanced for the year overall. For the 2013/2014 fiscal year, its forecast ranges from a surplus of $250 million to a deficit of $500 million.
So far, $704 million has been allocated to flood recovery, it says. Although the total bill is expected to be much higher than that.
“Right now, our best estimates show the June flooding disaster to be about a $5-billion event,” said Doug Horner, president of Treasury Board and the province’s minister of finance
While this overall cost will be shared between the province, other levels of government, and insurance claims, Horner said the event will impact the province’s finances.
“We’re certainly in for some challenges,” he said. “But with a solid commitment from the federal government for their contribution to support disaster recovery, and thanks to our strong economy and higher revenues in first quarter, we are in a good position to help get lives back to normal.”