• Alberta’s $15 billion debt growing at $201.55 per second
• 15% operational spending cut would save $6.3 billion

CALGARY, AB: The Canadian Taxpayers Federation (CTF) today released Debt Brake and Balanced Budgets, its 2015-16 pre-budget submission to the government of Alberta.

Debt Brake and Balanced Budgets calls for a ‘debt brake’ – a Swiss-inspired approach to reduce government debt load and stop spending growth. The submission calls on the Alberta government to balance the budget by 2016-17 and pay down the province’s over $15 billion debt as soon as possible. (Photo: Mattvrhodes/Flickr)

Alberta is forecast to pay $843 million just to cover the interest payments on the provincial debt in 2015-16, rising to over $1.85 billion for 2019-20.

“The government is throwing away millions of tax dollars on interest payments every year,” said CTF Alberta Director Paige MacPherson. “That’s $1.85 billion that won’t be spent on schools, hospitals or tax relief. Alberta must put an end to the debt.”

The CTF’s submission calls for an operational spending cut of 15 per cent to save $6.3 billion, in addition to a legislated spending cap. The CTF recommends:

• 10% reduction in the number of public servants
• Immediate hiring freeze in government
• Immediate 10% salary reduction for government employees
• Government employee pension reform
• 10% cut in MLA salaries allowing them to remain over $114,000

“Trimming spending will send a message that the government is willing to tighten its belt, too – not just pile more taxes onto Albertans,” said MacPherson.

The submission also calls for:

• Bring back the single-rate income tax
• Maintain current royalty rates
• Resist $25/day daycare
• Say no to new tax powers for cities
• Say no to requests for tax money for a Calgary pro sports arena

 The CTF submission also commends the government’s nod to transparency and recommends steps to strengthening government accountability.

 “The Alberta economy has veered off track,” said MacPherson. “Alberta needs a debt brake. By making the tough decisions now, the government can steer Alberta off the road of uncertainty.”

 For only the second time in the CTF’s 25-year history, Alberta’s finance minister did not agree to meet with the CTF to discuss its budget proposals.

Debt Brake and Balanced Budgets can be downloaded here: http://www.taxpayer.com/media/2015-16-CTF-AB-Pre-Budget-Submission-FINAL.pdf

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For more information:

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