The Canadian Taxpayers Federation is calling the Alberta provincial budget bad news for taxpayers. 

The provincial debt increased by $6.1 billion, bringing the total over $18 billion this year. The government plans to essentially double the debt over the next two and a half years.

Credit rating agency Moody’s warned the budget was “credit negative,” and the National Bank said, “in two years time, Alberta’s gross borrowing program could rival Quebec.”

“The premier has shrugged off these warnings, but we can look to Ontario to find out what happens next,” said CTF Alberta Director Paige MacPherson. “After the warnings come the credit downgrades, then borrowing becomes pricier for taxpayers. Like racking up debt on your visa card, it’s just irresponsible.”

The province’s deficit is a whopping $8.9 billion this year including infrastructure.

“If we aren’t seeing big tax hikes today, we’ll see them tomorrow,” said MacPherson. “The government’s refusal to make tough choices around spending is shifting the debt burden onto the backs of future generations.”

For the first time since 1993, the government is planning to borrow for day-to-day operational spending. This is a break from their usual borrowing to fund long-term infrastructure projects. Soon they will be borrowing to pay teachers’ salaries.

“We’ve seen zero willingness from the government to tighten its belt,” said MacPherson. “There are tens of thousands of private sector layoffs, yet no trims in government salaries or spending. Taxpayers will shoulder this burden alone.”

The British Columbia government spends $6.5 billion less than Alberta per year, while still providing frontline services and social programs. Alberta could save over $1,500 per person, per year, by spending at B.C. levels. 

“If the government doesn’t rein in spending, their only choice to finance their debt load will be to significantly raise taxes,” said MacPherson. “Hold onto your pocketbooks.”

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For more information:

CTF Alberta Director Paige MacPherson
cell: 403-478-7184, office: 403-475-6207, email: [email protected]