Premier Ed Stelmach told the Calgary Chamber of Commerce on Thursday that he could balance the budget with a stroke of a pen, but it would mean abandoning infrastructure projects, a move he said Albertans have no appetite for. (CBC)

The provincial budget will be presented on Feb. 24, Alberta Premier Ed Stelmach announced Thursday in a speech to the Calgary Chamber of Commerce.

Stelmach acknowledged the budget would include a deficit, but said Albertans would prefer the government dip into its savings to avoid cutting necessary infrastructure projects.

"I've never had a single Calgarian come to me and tell me to stop, stop building the infrastructure," Stelmach said.

"Not one said, 'please don't build the schools, we'll somehow get by.' Haven't heard. And why? Because we all know that we need these things."

The budget will be delivered by Lloyd Snelgrove, who became finance minister after Ted Morton stepped down last week to run for the leadership of the Alberta Progressive Conservative party.

Spending cuts could raise Calgary taxes

The relaxed-looking Stelmach received a warm welcome from the crowd one week after announcing his intention not seek re-election as premier.

He told the chamber the upcoming budget would affect some programs.

'I could balance the budget tomorrow, balance it with the stroke of a pen.'— Premier Ed Stelmach

The government couldn't balance its budget this year because that would take away from health, education and infrastructure spending, something he won't do because it would cause even bigger problems.

"I could balance the budget tomorrow, balance it with the stroke of a pen, just by cancelling those infrastructure projects," said Stelmach.

"We could mothball the South Health Campus, scrap all the money going to the City of Calgary under the Municipal Sustainability Initiative, and with it the west extension of the C-Train and the northeast rec centre."

Stelmach said cutting that spending would also force the city of Calgary to raise property taxes by $350 a year to keep those projects going.

Another economic boom is coming and Alberta is well positioned to capitalize on it, the premier said.

He also said his government wouldn't get distracted by the leadership race to replace him as party leader. A leadership vote is expected in September.

He said cabinet ministers who want to run must step down and he will replace them until a new premier is sworn in.