Alberta’s budget, to be unveiled on Oct. 27, will contain the province’s seventh deficit in the last eight years, most recently projected at $5.9 billion.
alberta deficit
When tax rates are increased, tax filers—especially upper-income earners—are able to find legal means to mitigate those tax increases.
When Finance Minister Joe Ceci unveils Alberta’s budget on Oct. 27, Albertans can expect a sizeable deficit. In fact, the government’s latest data suggest a $5.9 billion deficit, but Minister Ceci has cautioned it could be “in the range of $6.5 billion.” In either case, the amount isn’t trivial.
With a large deficit looming, it's a good time to put Alberta’s finances in longer-term perspective.
There are many parallels between Alberta’s first NDP premier, Rachel Notley, and Ontario’s only NDP premier, Bob Rae.
According to a Fraser Institute study released in February, between 2004/05 and 2013/14, the Alberta government’s program spending jumped to $43.9 billion from $29 billion.
Forty-one billion dollars. That’s the extra amount, over and above what was needed to keep pace with population growth and inflation between 2006 and 2013, this to fund Alberta government program spending in those years.
Alberta Premier Jim Prentice is in the midst of formulating his first budget and the fiscal path of the province while watching oil prices continue to decline.
The red-ink budgets that have engulfed Alberta since the last recessionAlbertas Finance Minister Doug Horner just announced this years deficit could hit $4-billion are not accidental. Such red ink is not just the result of weaker resource revenues, as Alberta Premier Alison Redford regularly claims.