The Canadian Taxpayers Federation (CTF) is applauding the UCP government after it received a credit upgrade from Moody’s, the international credit rating agency..“It’s encouraging to see the province’s credit rating getting a boost because the Alberta government is paying down debt, keeping taxes low and saving money in the Heritage Fund,” Alberta Director of the Canadian Taxpayers Federation Kris Sims said..“Credit ratings matter because Albertans already pay billions of dollars on interest payments every year and the less money we waste to pay debt interest charges the better.”.Moody’s upgraded Alberta’s credit rating from AA3 to AA2 late Thursday..“(Alberta’s) tax regime remains highly competitive relative to most provincial peers given a lack of sales tax and favourable corporate and personal income tax rates,” the announcement reads..It also cites paying down the debt as a positive factor..“Debt needs are estimated to be $11 billion CAD lower between 2022-23 and 2024-25 as the province is looking to prioritize repaying maturing debt obligations from its surpluses and cash position,” the announcement reads..The UCP is projected to pay down $13.4 billion of debt, which would be the largest debt repayment in the province’s history. The province has committed to allocating another $10.8 billion over the next three years towards savings and debt reduction..The interest on the Alberta government’s debt is costing taxpayers $2.6 billion this year..“The Alberta government is on the right track by lowering taxes, paying down the debt and saving money for the future,” said Sims..“It’s important for the government to ensure this fiscal discipline lasts by using tools such as balanced budget legislation and the Taxpayer Protection Act.”
