Mixed signs on provincial fortunes

Alberta’s economy is finally looking up after a pummeling from recession, unemployment and low oil prices, but so is provincial spending.

Finance Minister Joe Ceci announced last week the Province is on track to end the fiscal year with a $10.8 billion deficit, $444 million more than in last year’s budget, while spending is now expected to be $2.6 billion higher.

Ceci made the announcement during a third quarter fiscal update last week as he said signs are starting to point up for the Alberta economy. The Province expects Alberta’s economy to grow by 2.4 per cent in 2017. Meanwhile, the Conference Board of Canada forecasts Alberta will lead the country in economic growth.

“The evidence shows the storm clouds are starting to recede with a little more sunshine peeking through,” he said.

Provincial spending is expected to reach a total of $53.7 billion. Total revenues are forecast to come up at $42.9 billion, $1.5 billion higher the budgeted, due to higher resource revenues, federal transfers and investment income.

Though Alberta is still early in recovery, Ceci said his government is focused on making the fiscal journey as smooth as possible.

The upcoming provincial budget will protect education, health care and essential services, he said.

“What we’re doing is making sure Albertans don’t pay for this recession by reduced programs and services,” he said. “We don’t want to go back to those days where operational spending follows the oil and gas roller-coaster.”

The Province remains committed to bringing the budget back into balance, said Ceci, and getting spending under control, without negatively impacting front-line services. His forecast for a balance budget by 2023-24 remains.

Highwood MLA Wayne Anderson said the reality is not as rosy as the government wants people to think. He said unemployment is still a major problem as Alberta shed 24,000 jobs in January.

It’s not just about the recession, Anderson said Alberta’s fiscal woes are made worse by the NDP government’s spending. It spends $2,500 more per person than the B.C. government, which has balanced its budget, said Anderson, a member of the official opposition Wildrose Party.

“This government is reckless and careless with our taxpayers’ dollars, they’re really mortgaging the future of our children based on the amount of money they’re spending and the tremendous amount of debt that they have,” he said.

Anderson said the government isn’t looking at cutting spending on the Province’s large civil service.

He said the Wildrose Party isn’t calling for cuts of from-line services, rather the government should be looking to trim layers of middle-management.

“What we’re suggesting is look at other areas within the organization to increase efficiencies,” said Anderson.