Budget 2011 submission presented to Alberta’s Finance Minister
CTF estimates 2011-12 deficit could be three times higher than promised

EDMONTON, AB: The Canadian Taxpayers Federation (CTF) presented Alberta’s Finance Minister, Dr. Ted Morton with its 2011-12 pre-budget submission late yesterday, along with the message to the finance minister that it was time to start cutting spending.

“This is 1988 all over again,” said CTF-Alberta director Scott Hennig. “Despite the provincial government running record deficits, to date they have been unwilling to make any tough decisions. Plans to balance the budget don’t mean a thing unless action is taken.”

In its submission entitled “Roadmap to a Balanced Budget,” the CTF makes 25 recommendations to the provincial government for short, medium and long term solutions to balance the budget and put the province back on the right fiscal track.

“Wage freezes for senior staff and hiring freezes aren’t going to fill a $5 billion hole in the budget,” said Hennig. “And they’re not going to fill next year’s $3.8 billion hole either.”

The CTF estimates the Alberta government could have a $3.8 billion deficit in 2011-12, based on current prices for oil, natural gas and the exchange rate. This is over three times more than the $1.1 billion deficit currently projected for 2011-12 by the Stelmach government.

Some of the recommendations in the CTF’s 2011-12 pre-budget submission include:

• a 5 per cent operational spending cut across all ministries;
• extending the three-year capital plan over five years;
• negotiating a 5 per cent roll back of government worker’s wages;
• consider unpaid days off for non-essential government employees;
• elimination of the carbon capture and storage program as well as the green transit (TRIP) funding;
• reversing the 2008 MLA pay hike;
• reducing the size of cabinet;
• close entry to existing defined-benefit employee pension plans and create new defined-contribution pension plan;
• no more borrowing or bond issues for capital.

“This government has spent itself into a position where making cuts is the only option left. They cannot delay any longer, cuts need to be made,” concluded Hennig.

The CTF’s 2011-12 pre-budget submission can be downloaded here: http://www.taxpayer.com/sites/default/files/downloadable/Roadmap%20to%20a%20Balanced%20Budget.pdf

Downloadable Version: 

Roadmap to a Balanced Budget.pdf

By: Scott Hennig
Posted: December 07, 2010
Topic: Alberta

Contact the regional director Scott Hennig for further information.

Type: News Releases

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