The real “resource curse” is the way successive Alberta governments squandered revenues from resource development.
alberta government spending
With budget season on the horizon, the headlines may mask the magnitude of growth in government debt.
In 2015/16, Alberta is scheduled to run its seventh deficit in eight years.
Between 2004/05 and 2015/16, the Alberta government increased program spending by roughly 100 per cent.
The real culprit for Alberta’s fiscal problems—and ultimately the recent credit downgrade—is several years of rapid spending growth by successive governments.
While some provinces have taken steps to rein in spending and balance budgets, Ontario is a laggard and Alberta has embarked on a new road to debt.
If the first step towards remedying a problem is admitting that you have one, Alberta is a long way away from fixing its budget woes.
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.
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.