Canada's Alberta projects deficit of nearly C$9.4bn, citing low oil prices

Canada's oil-rich province of Alberta is forecasting a deficit of C$9.4bn ($6.9bn; £5.1bn), citing the costs of a rising population coupled with low oil prices.

The once debt-free province called the deficit "a tough pill to swallow", saying it will have to break its own fiscal restraint laws and that it cannot balance the budget for the next three years.

The projection comes as the province prepares to put several referendum questions to voters later this year, including one that would restrict access to certain social services for some newcomers.

Alberta is also grappling with a grassroot movement that is gathering signatures to force a separate referendum on secession from Canada.

Delivering the economic outlook on Thursday, Alberta's finance minister Nate Horner said the province was dealing with a "dramatic" increase in its population at the same time as oil prices dip.

Historically, the province's financial health has been tied to the boom and bust of the oil industry. Alberta is home to the world's third-largest oil reserve, and crude oil is its main commodity.

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Alberta projects the benchmark West Texas Intermediate oil price will average $60.50 per barrel in the upcoming year, down from $74.34 two years ago.

It added that it would need prices to be between $74 to $77 per barrel in order to balance its budget.

Alberta is the only province in Canada that does not charge its residents a sales tax.

Finance minister Horner suggested that may have to change.

"If Albertans want to give up some of that tax advantage to get off the roller-coaster, that's a conversation we can have," he told reporters on Thursday.

As oil prices dip, Alberta's population has grown at a faster pace than any other Canadian province, though the rate has recently slowed as Canada tightens its immigration policies.

Horner did not specify how much the growth has contributed to the province's deficit, but said he believed the influx had strained Alberta's public services and housing market.

Last week, Alberta premier Danielle Smith announced in a televised address that she would put forward several referendum questions to limit immigration.

Albertans would be asked to vote on nine questions in total, including one that proposes charging newcomers without permanent immigration status a fee to access healthcare and education services.

The measure has been criticised by Naheed Nenshi, leader of the New Democratic Party opposition in Alberta, who accused Smith of "blaming and scapegoating" immigrants.

"This exercise is simply about distraction after distraction after distraction to avoid talking about how bad the Conservatives are with money, how bad they are with the budget, how bad they are with economy," said Nenshi.

Smith said that her government is attempting to take control of immigration — which is regulated by Ottawa — to give Alberta more autonomy over its matters, as some in the province look to separate from Canada altogether.

Support for Alberta's independence movement remains low, but its proponents project they will be able to gather enough signatures to force a referendum.

If successful, the separation question, along with the immigration questions posed by Smith, would be voted on 19 October.