Canada’s Oil Heartland Sees Trade War Sparking Budget Shortfall

Alberta, Canada’s top oil-producing province, is projecting its first budget deficit after four years of surpluses as the prospect of a trade war with the US weighs on the outlook for economic growth and oil revenue.

The shortfall of C$5.2 billion ($3.6 billion) in the fiscal year starting in April would be driven largely by a C$4 billion drop in bitumen royalties and a C$1.2 billion drop in personal and corporate income taxes, according to forecasts released Thursday.