The idea is simple—save during good times to help avoid deficits during bad times.
According to projections, debt interest costs will reach $3.1 billion in 2025/26.
The government increased projected nominal program spending by $10.1 billion since the fiscal update last fall.
All resource revenue is typically included in the budget, creating volatility in provincial finances.
The costs included agricultural subsidies and tax credits for natural gas drilling.
The province’s current spending levels greatly exceed its tax revenues.
The province's net asset position deteriorated by nearly $23,000 per person between 2007 and 2021.
The government should save some natural resource revenue to protect against future increases in debt.