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.
alberta government spending
As resource revenue began increasing, Alberta’s per-person government spending increased from $7,393 to $13,114.
Alberta’s government-sector workers enjoy a 9.3 per cent wage premium over their private-sector counterparts.
From 2008/09 to 2020/21, the province's net financial position deteriorated by almost $100 billion.
Resource revenues are set to increase substantially.
In 2017, the province's per-person spending reached its highest level since 1965.
Alberta’s fiscal improvement is good news, but without significant policy changes, it will only last so long as commodity prices stay high.
Without the recent resource revenue windfall, the province would still face a large deficit this year.