This past week saw the unveiling of the Alberta’s sixth-straight deficit budget for 2014.
Despite revenues projected to be the highest in Alberta history at $44.4 billion, the Alberta government will run a consolidated cash deficit of $2.7 billion and take on an additional $5.1 billion in debt.
The 2014 budget also sentences Alberta taxpayers to a $21-billion total debt by 2016. This crushing debt translates into $820 million in interest payments that should be used for health care and education shortfalls that are affecting our everyday lives.
Alberta’s rate of borrowing will be an astonishing $14 million a day, $585,000 an hour, $10,000 a minute and $160 per second.
“Albertans simply can no longer afford this PC government,” said Wildrose Leader Danielle Smith.
“After promising during the last election to balance the budget and stay out of debt, the PCs’ short-sighted and reckless spending will have lasting impacts on future generations, and no doubt cause long-term pain as we deal with the debt we are taking on today.”
Contrary to the Alberta government’s catchphrase of “living within our means,” this year’s budget has a spending increase of 8.6 per cent, which reflects the highest spending budget in Alberta’s history. This massive spending increase is also is a direct contradiction to the throne speech, which contained the premier’s promise to keep spending increases below the rate of inflation, plus population growth.
“With this kind of record-breaking revenue stream, it is unconscionable that the PC’s continue to plunge future generations into debt that will cripple our ability to deliver programs and services,” said Airdrie MLA Rob Anderson.
“This year, the PC’s had a genuine opportunity to balance the budget and get off the debt path. Instead, they’ve doubled down on debt and are sticking our children and grandchildren with the bill.”
Anderson also noted the PC debt repayment plan stipulates an astonishing $100 million a year for principal repayment alone.
“At that rate, it will take 220 years to repay the debt, and that’s IF the PC’s don’t borrow one additional penny beyond 2016,” Anderson said.
“Albertans remember the Getty era of debt and they remember how painful it was to fix. The Redford PC’s seem intent on repeating history.”
The Wildrose Official Opposition released 16 recommendations that contain savings of $1.91 billion for Albertans, with no cuts to front-line services. These savings would put Alberta on a path toward balancing the budget, paying down debt, saving for the future, and protecting core front-line services.
In order to achieve, actually “living within our means,” it requires fiscal restraint that would not see spending outpace revenues, as has been the case for the last six consecutive deficit budgets. A concept the Alberta government obviously is not quite clear on.
For a copy of the 16 recommendations, please contact my office.
Rick Strankman is the MLA for Drumheller-Stettler.
— From the Legislature