1013 ET - Canada's resource-rich province of Alberta forecast last week a relatively deep budget deficit for the upcoming fiscal year. The oil-price shock following US-Israel military attacks on Iran might force officials in the western Canadian province to revisit their outlook, says economist Warren Lovely at National Bank of Canada. The projected C$9.4 billion budget deficit for the 2026-27 fiscal year was based on weaker oil-and-gas royalties. The oil-price pop, "if sustained, would see extra royalty dollars bubble up in Alberta" in the billions, Lovely says. He speculates whether it might be enough to erase most if not all of the shortfall. The analysis points to a potential fiscal bounce for jurisdictions that rely on energy to fuel corporate-tax receipts. (Paul.Vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

March 06, 2026 10:13 ET (15:13 GMT)

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