Alberta’s surplus on the rise, but debt and spending raise red flags
The province may be celebrating a stronger-than-expected surplus, but with growing debt, escalating spending, and looming union negotiations, taxpayers should brace for a bumpy road ahead.
Alberta's first-quarter fiscal update is in, and while the province is touting a $2.9 billion surplus, the Canadian Taxpayers Federation (CTF) is sounding the alarm over escalating debt and upcoming public sector union demands.
The $2.9 billion surplus marks a significant jump from the modest $367 million forecasted in February. However, the CTF is concerned that the good news may be overshadowed by a looming debt crisis. Provincial debt is projected to soar to $86.1 billion by the end of this fiscal year—an increase of $4.2 billion from the previous year.
“It’s very good news to see the provincial surplus increasing, but taxpayers are concerned the debt is still going up,” said Kris Sims, CTF Alberta Director. “Premier Danielle Smith did the right thing by passing a law to save money in the Heritage Fund, but now the government needs to deliver its promised income tax cut.”
The Alberta government’s spending remains high, with expenditures expected to reach $73.2 billion, slightly above the budget estimates. Adding to this, the province faces interest payments on its debt totalling $3.2 billion this fiscal year alone. Finance Minister Nate Horner also hinted at another potential budgetary strain: upcoming contract negotiations with thousands of public sector workers, including teachers and nurses.
Horner's remarks during a news conference underscored the precarious balancing act facing the government: “Collective bargaining negotiations are underway with thousands of public sector workers... and we’ve promised to cut personal income taxes to save Albertans $1.4 billion each year.”
NEWS RELEASE:
— Kris Sims (@kris_sims) August 29, 2024
🏛️ Alberta fiscal update shows improved surplus but raises caution flag about debt
🟢 Surplus of $2.9 billion
🟡 Provincial debt projected at $86.1 billion
Premier Smith did the right thing by passing a law to save money in the Heritage Fund & now the government… pic.twitter.com/vLFlAbculw
Sims reinforced the concern: “The government doesn’t have cash to spare, so it can’t be blowing the budget on big pay hikes for government unions this fall. The Alberta government needs to deliver on its promise to cut income taxes.”
Alberta may be celebrating a stronger-than-expected surplus, but with growing debt, escalating spending, and looming union negotiations, taxpayers should brace for a bumpy road ahead.
- By David Menzies
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