Alberta's projected deficit has inched up ever so slightly as the province continues to head for a record deficit.
The first quarter update, released Wednesday, predicts Alberta will go into the red by $4.76 billion this year. That's an increase of $7 million over what was budgeted -- or "relatively unchanged" from February's financial blueprint, says Finance Minister Ted Morton.
It would still be the largest deficit in Alberta's history.
At the same time, the Alberta Heritage Savings Trust Fund -- the government's long-term savings account -- lost $282 million, lowering its value to about $14.1 billion.
In addition to factors like the rising dollar -- which hurts crude oil royalties -- the province is also dealing with lower-than-expected personal income taxes and investment money, among other things.
Overall, expenses are expected to rise $609 million more than was forecast, due in part to emergency and disaster assistance.
That includes aid for municipal flooding, fighting wildfires and battling the dreaded mountain pine beetle.
Much of that could be offset by a $602-million revenue boost in other areas, including greater-than-expected corporate tax revenues, land sales and federal transfers.
Liberal critic Hugh MacDonald said $34 billion in revenue this year should have been enough to avoid a deficit.
NDP Leader Brian Mason suggested scrapping the province's flat-income tax system as one option to raise revenues, calling it a "goldmine for the wealthiest Albertans but it's given the middle class the shaft."
The deficit is covered by the province's Sustainability Fund, projected to have a balance of $11.2 billion at year-end, $3 billion more than was expected in February.
Meanwhile, a $282-million hit to the Heritage Fund is being blamed on a decline in world equity markets.
The fund is still expected to earn $684 million this year before expenses -- a decrease from the original $1.05-billion forecast.
