CALGARY, AB: The Canadian Taxpayers Federation responded to today’s Alberta government credit downgrade by calling on the province to begin tackling its spending and debt problem.

“The credit downgrade signals that it’s time for the Alberta government to deal with the province’s debt and spending problem,” said Franco Terrazzano, the CTF’s Alberta Director. “It was important for the government to address its multi-billion-dollar spending problem before COVID-19 hit, and now it’s even more crucial.”

Fitch Ratings downgraded the Alberta government’s credit rating from AA to AA-, citing the “expectation that sharply higher provincial borrowing during the pandemic-driven economic crisis and in the recovery to follow will result in a debt burden relative to GDP that is incompatible with an ‘AA’ rating.”

Premier Jason Kenney has estimated that the province’s deficit could triple to $20 billion this year, resulting in the government’s debt reaching $90 billion. Prior to the COVID-19 pandemic, the Alberta government projected its debt interest costs to reach $2.5 billion in 2020. The Alberta government would spend $10 billion less every year if it brought its per person spending in line with British Columbia, Ontario and Quebec, according to the Blue Ribbon Panel.

“Albertans are already losing billions of dollars through interest payments, so it’s important for the government to get a handle on its finances before the situation gets any worse,” said Terrazzano. “Struggling Alberta families and businesses can’t afford higher taxes to pay for a bloated provincial government, so the government must solve its debt problem by cutting spending.”