While the headlines on Alberta’s recent budget focused on the planned $6.1 billion deficit this year, the reality is that the true deficit will be even larger.
In addition to spending increases, the Notley government is proposing new tax increases on top of the hikes to personal and corporate income taxes that have already come into effect.
Today's Alberta budget forecasts a $6.1 billion deficit for this fiscal year, and the province is on track to record 10 budget deficits in 11 years.
A popular narrative holds that the recent fall in oil prices is chiefly responsible for the Alberta's current deficit. The evidence does not support this view.
On Tuesday, the Alberta government will release a budget with a projected deficit of at least $5.9 billion this year, the seventh deficit in eight years. And just the other day, the government announced the budget won’t be balanced until 2019/20.
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.
The new Alberta government has delayed introducing a budget until the fall, so MLAs will have plenty of time to think about how they’ll collect and spend Albertans’ money.
Premier Jim Prentice dropped hints for months that the 2015 provincial budget was a once-in-a-generation chance to “fix” Alberta’s finances.
In Alberta, to cushion the blow from falling revenues, some claim higher taxes will balance the books. How soon we forget. Alberta tried that in the late 1980s. It didn’t work.