EDMONTON — Premier Jim Prentice says his government will be dealing with a $6-billion to $7-billion hole in Alberta's $40-billion provincial budget if low oil prices persist.
Prentice says that means all Albertans will feel the consequences.
But he says fixing the problem is not as simple as making deep across-the-board cuts in government spending.
The premier says the government will limit spending to below the rate of growth, plus inflation, and focus on core services.
It will also rely on much more conservative estimates for oil prices when putting together future budgets.
Prentice says he will not turn to a provincial sales tax to raise revenue and the government will continue to borrow money for capital projects.
Oil was trading at below US$65 on Tuesday, down from US$95 forecast in the provincial budget.
