June 17 (Bloomberg) -- Alberta, the Canadian province that sits on the largest pool of oil reserves outside the Middle East, may borrow as much as C$5 billion ($4.41 billion) over the next three years after posting its first budget deficit in more than a decade.

“We haven’t let the ink dry on the final program yet, but we’re looking at bonds, and we’re looking at the opportunities,” Finance Minister Iris Evans told reporters following a speech today at the Economic Club of Canada in Toronto.

The province will borrow C$1.1 billion this year and Alberta officials have been meeting with banks to indicate they may borrow more, she said.

A decline in tax revenue led to the first deficit since 1993 last year, forcing the government to turn to debt markets for the first time in more than a decade. Alberta projected a record deficit of C$4.71 billion for the fiscal year ending in March, following a C$1.4 billion shortfall last year.

Alberta’s gross domestic product is expected to contract by 2.5 percent this year, the steepest decline in 17 years, according to RBC Economics.

To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

Last Updated: June 17, 2009 14:49 EDT