government spending

More than three years after the end of the recession and British Columbia’s provincial government continues to struggle with deficits, which as of the last quarterly update will likely exceed $1.5 billion. Relying on revenues to rebound enough to catch up with spending just doesn’t work as BC’s own history aptly demonstrates. Similarly, municipalities across the province continue to struggle to find sufficient resources for infrastructure needs while balancing their books.

In 1987, the value of Alberta’s Heritage Savings and Trust Fund stood at $12.7 billion. That year, the province faced a massive budget deficit and transfers to the fund from resource revenues were suspended. Such deposits did not resume again until almost two decades later and only lasted two years before being suspended again.

Having spent itself into a considerable deficit problem, the Alberta government seems to be considering a sales tax as part of its plan to dig provincial finances out of the red (or at least they’re trying to start a ‘discussion’ to that end). The alternative, we’re led to believe, is fewer and lower-quality public services due to obligatory spending cuts. A closer look at the facts suggests that’s not the only option available.

Instead, they could choose a win-win scenario that improves health care while reducing waste and inefficiency.