• CTF projects $3.9 billion deficit, continuing for years;
• CTF slams 6.7% increase in non-flood spending;
• Debt to grow faster than planned, $21 billion by 2016;
• Debt interest payments to reach $1 billion a year by 2015

EDMONTON, AB: The Canadian Taxpayers Federation (CTF) gave two-thumbs down to Finance Minister Doug Horner's 2014-15 budget for the massive hike in non-flood related spending, increasing the rate at which Alberta continues to go into debt and for continuing to run massive deficits.  

The CTF calculates that the consolidated cash deficit (total revenues less total expenditures) will be $3.9 billion in 2014-15, another $3.9 billion in 2015-16 and $1.9 billion in 2016-17. This despite Premier Redford's repeated promise to balance the budget by March 31, 2014.

"Premier Redford has not only broken her promise to balance the budget by this March, but she is on track to break it again and again for the next three years. Unless oil bails the government out, we can look forward to deficits well past the rest of her term," said Alberta Director Derek Fildebrandt.

Budget 2014-15 will see non-emergency spending increase by 6.7% from $43.4 billion to $46.3 billion. Non-emergency spending will increase by another $3.7 billion in 2015-16.

"The last thing you do when you're running a massive deficit is go on a spending binge. Hiking non-flood spending by 6.7% ($2.9 billion) is fiscally irresponsible in the extreme," said Fildebrandt.

The debt will also increase by 38 per cent from $8.5 billion to $13.4 billion. The debt will increase to $18.1 billion in 2015-16 and reach $20.9 billion in 2016-17.

"Passing the bill to our children to pay is irresponsible and downright immoral," said Fildebrandt.

Debt interest payments will reach $1 billion a year by 2015-16 and $1.4 billion in 2016-17. This is up from $208 million in 2008-09.

"Every dollar that we spend on debt interest is a dollar in the hands of bankers and bond-holders, and not spent on health care, education and building infrastructure," said Fildebrandt.

Fildebrandt concluded, "The only silver lining in this budget is that we have been spared tax hikes, but unless we get our budget under control, tax hikes will become inevitable to pay for it all."