Successive governments have perpetuated the boom-bust cycle of provincial finances.
alberta government finances
The province will run a projected $12.3 billion budget surplus this fiscal year.
By reducing provincial debt, the province would be better prepared for the next inevitable shock.
Alberta's fund was valued at just C$16.2 billion compared to US$65.3 billion for Alaska’s fund.
The province had the largest growth in government net debt in Canada from 2007/08 to 2021/22.
Alberta went from spending $61 per person on provincial debt interest costs to roughly $563.
Governments in Alberta have a long history of increasing provincial spending during periods of high resource revenue, which inevitably leads to deficits once resource revenues decline.
The government should save some natural resource revenue to protect against future increases in debt.