“In the past year and a half, the price of oil has dropped by over two-thirds – from a peak of more than $105 per barrel in the summer of 2014, to less than $30 in January [2016]”, Finance Minister Joe Ceci said in his budget speech. In its budget also released Thursday, the Liberal government of Dwight Ball had to gouge and slash widely to get the deficit down to $1.8 billion, which would be $15 billion if that province was as populous as Alberta.
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The province is avoiding cuts to front-line services. It’s expected to provide up to $2,750 annually for vulnerable children and families.
– Salaries and supplies in government departments to be cut by two per cent to save $121 million.
Numbers provided in the budget Thursday are forecasting a three year, $58 billion debt, plus a $10.4 billion deficit for the 2016/2017 year, $10.1 Billion in 2017/2018 and $8.4 Billion in 2018/2019.
– Total revenue is pegged at $41.4 billion against $51.1 billion in spending.
“When you look at the size of the deficit, $10.4 billion, that’s really bad news for taxpayers today, but it’s also bad news for taxpayers tomorrow who are going to have that debt burden basically shovelled squarely onto their backs”.
It’s a budget that certainly holds close to the Premier’s promise of being a “shock-absorber”, but contains no plans of how the government will pay down the debt.
Spending on health is up 5.6 per cent. Spending on education is up 4.6 per cent. There is a plan to spend $20 billion over three years on schools, roads and hospitals.
The last time the province borrowed to cover its operating expenses was 1994.
The number of people employed by the Government of Albert will actually increase rather than fall through attrition, as the Wildrose Party opposition urged, which isn’t quite the knife-between-fangs flourish the NDP wishes to accuse them of. There is money for 40 more Mounties, 50 news schools and 2,000 new spaces for post-secondary students. The fact is, the debt will at some point get beyond the fiscal capacity of the government.
“They’re even suggesting $65/barrel by next year, I think that’s an overestimate, and with that they’ve included about a 73 cent dollar” Jean said.
With the levy, though, comes a Climate Leadership Rebate, which could see as much as a $360 return to a family of four in 2017, and as much as $540 in 2018. Prentice calls an election before the budget is passed and the Tories are swept from power by the NDP.
EDMONTON – Alberta’s NDP government tabled its first budget Tuesday. New measures to improve access to capital for small- and medium-sized businesses.
The Wildrose Party approved of the government’s decision to cut taxes for small businesses, but said the budget’s carbon levies, such as new fuel taxes beginning in 2017, offset any potential benefits.
Three U of A projects were listed as “unfunded” on the budget, meaning they have fulfilled provincial criteria – key social programs and services, encouraging economic development in communities and protecting the environment – but still haven’t received government funding.
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Alberta is also cutting the small-business income tax rate to 2 percent from 3 percent.
