Province’s net financial position could decrease by another $14 billion in 2016/17, making it a net debtor province.
alberta economy
To eliminate the deficit, Alberta's government should restrain spending.
The federal government may speed up spending on infrastructure projects in Alberta and Saskatchewan.
In 2015/16, Alberta is scheduled to run its seventh deficit in eight years.
The provincial government introduced numerous tax increases, essentially ending Alberta’s tax advantage relative to key competing jurisdictions.
The real culprit for Alberta’s fiscal problems—and ultimately the recent credit downgrade—is several years of rapid spending growth by successive governments.
The recent elections in Alberta and federally in Canada have elected governments that appear dedicated to increasing government’s interference in the economy.
In its recent Speech from the Throne, the new Alberta government reiterated its plans to make life more expensive in Alberta.
Alberta’s economy is still on shaky ground as oil prices remain depressed relative to last year’s levels.
In a famous explanation of why voters choose the governments they do, a 1990s-era adviser to Bill Clinton remarked, “It’s the economy, stupid.” That’s not wholly accurate; voters toss parties out (and vote parties in) on matters other than unemployment rates and incomes. The recent Alberta election is only the most obvious example.