EDMONTON -- Alberta's economy is on the road to recovery and the government is taking in more money, but there's no change to the projected $10.8-billion deficit this year.

Finance Minister Joe Ceci says Alberta is going to make $1.5 billion more than expected in the current budget year, which ends March 31.

But he says increased spending on programs and disaster assistance, coupled with a $1 billion expense to begin phasing out coal power means there's no boost for the bottom line.

In fact, the province had to use its $700-million cushion against low prices to keep the deficit from ballooning higher to $11.5 billion.

However numbers from the province and from the Conference Board of Canada project Alberta will lead the nation in economic growth in 2017.

The province says there are 119 drilling rigs operating in January, the highest total in two years.