Alberta’s UCP government released their second budget Thursday with debt still soaring..With debt at $80.8 billion when they first took office in 2018, that figure is set to soar to $107 billion by the time the next election rolls around..Spending over that time will remain essential frozen, reduced by just $1 billion when they took office from the NDP..In fact, total spending will basically stay the same from $56.3 billion this year to $56.2 billion in 2022-23..In 2020, the province forecasts a $6.8-billion deficit. That will drop to $2.7 billion next year before hitting a surplus of $700-million surplus the year after that..“Third-quarter results show the deficit has declined more than expected. With the deficit $1.2 billion lower than projected in Budget 2019, Alberta taxpayers can expect to pay $35 million less in debt-servicing costs,” the government said in a release..The Tory budget is banking on a $2.4 billion rebate from the feds under the fiscal stabilization program, which Premier Jason Kenney has touted as a way to make Equalization more fair..The budget’s revenues assume oil prices will average WTI $61.50/barrel. Today it’s selling at $46.34..The government is expecting a boom in revenue. From an estimated $50 billion this year to $58 billion in 2022-23. That’s partly because an anticipated 38 per cent increase in energy royalties as oil production and pipeline capacity expand..There is also a $750 million fund set aside in case of disasters like forest fires which could be used to boost a potential surplus if none happen..Corporate welfare programs will also see a boom in funding, with $98 million set aside for the Alberta Film and Tax credit..Budget 2020 also provides stable funding for health, education and core social services, the government says..“Budget 2020 continues our focus on creating jobs, growing our economy and streamlining programs and services to ensure a sustainable future. Our plan is working. We are on track to balance the budget by 2022-23 and Alberta’s surplus in that year is expected to be higher than that projected in Budget 2019. We are also maintaining funding for health and education while ensuring each dollar is wisely spent on what Albertans need most,” said finance minister Travis Toews..The NDP opposition were less than impressed with the budget..“Budget 2020 is built on wildly optimistic forecasts for energy prices and economic growth, but still calls to collect $436 million in new fees, licenses and premiums from Albertans. The sneaky “bracket creep” personal income tax increase will extract another $100 million from families this year, escalating to $200 million next year and the $300 million the year after that,” said a release from the NDP..“Albertans will pay far more and get far less,” said NDP leader Rachel Notley.“This budget offers no hope to the 50,000 Albertans who have lost their job since this government began on its misguided path, and in fact aims to push more public sector workers into unemployment. It contains no plan to diversify our economy.”.The Canadian Taxpayers Federation gave Budget 2020 mixed reviews.. They said spending and the deficit is moving in the right direction, but hammered the government for increasing income taxes and provincial property taxes..“Budget 2020 is two steps forward and one huge step back for taxpayers because there’s some much needed spending restraint and the deficit is moving in the right direction, but Premier Jason Kenney is digging deeper into our pockets with higher income taxes and property taxes,” said Franco Terrazzano, Alberta director for the CTF..“After more than a decade of runaway government spending, Kenney deserves credit for taking air out of the government’s ballooning labour costs, which increased by billions of dollars even when Alberta went through a downturn.”.The CTF said the government is increasing income taxes through bracket creep which means inflation will push taxpayers into higher tax brackets even though their purchasing power hasn’t increased. The finance department has estimated that this would cost taxpayers hundreds of millions of dollars. Budget 2020 also increases provincial property taxes by 3.1 per cent this year..“Premier Kenney promised taxpayers that he would balance the budget without raising taxes, but last year he bent that promise with the bracket creep income tax hike and this year he’s breaking that promise by hiking provincial property taxes,” said Terrazzano..“Overspending by past governments on both sides got us into this mess, but breaking promises and raising taxes won’t help when the province really needs to get spending under control.”.Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.Twitter: Nobby7694
Alberta’s UCP government released their second budget Thursday with debt still soaring..With debt at $80.8 billion when they first took office in 2018, that figure is set to soar to $107 billion by the time the next election rolls around..Spending over that time will remain essential frozen, reduced by just $1 billion when they took office from the NDP..In fact, total spending will basically stay the same from $56.3 billion this year to $56.2 billion in 2022-23..In 2020, the province forecasts a $6.8-billion deficit. That will drop to $2.7 billion next year before hitting a surplus of $700-million surplus the year after that..“Third-quarter results show the deficit has declined more than expected. With the deficit $1.2 billion lower than projected in Budget 2019, Alberta taxpayers can expect to pay $35 million less in debt-servicing costs,” the government said in a release..The Tory budget is banking on a $2.4 billion rebate from the feds under the fiscal stabilization program, which Premier Jason Kenney has touted as a way to make Equalization more fair..The budget’s revenues assume oil prices will average WTI $61.50/barrel. Today it’s selling at $46.34..The government is expecting a boom in revenue. From an estimated $50 billion this year to $58 billion in 2022-23. That’s partly because an anticipated 38 per cent increase in energy royalties as oil production and pipeline capacity expand..There is also a $750 million fund set aside in case of disasters like forest fires which could be used to boost a potential surplus if none happen..Corporate welfare programs will also see a boom in funding, with $98 million set aside for the Alberta Film and Tax credit..Budget 2020 also provides stable funding for health, education and core social services, the government says..“Budget 2020 continues our focus on creating jobs, growing our economy and streamlining programs and services to ensure a sustainable future. Our plan is working. We are on track to balance the budget by 2022-23 and Alberta’s surplus in that year is expected to be higher than that projected in Budget 2019. We are also maintaining funding for health and education while ensuring each dollar is wisely spent on what Albertans need most,” said finance minister Travis Toews..The NDP opposition were less than impressed with the budget..“Budget 2020 is built on wildly optimistic forecasts for energy prices and economic growth, but still calls to collect $436 million in new fees, licenses and premiums from Albertans. The sneaky “bracket creep” personal income tax increase will extract another $100 million from families this year, escalating to $200 million next year and the $300 million the year after that,” said a release from the NDP..“Albertans will pay far more and get far less,” said NDP leader Rachel Notley.“This budget offers no hope to the 50,000 Albertans who have lost their job since this government began on its misguided path, and in fact aims to push more public sector workers into unemployment. It contains no plan to diversify our economy.”.The Canadian Taxpayers Federation gave Budget 2020 mixed reviews.. They said spending and the deficit is moving in the right direction, but hammered the government for increasing income taxes and provincial property taxes..“Budget 2020 is two steps forward and one huge step back for taxpayers because there’s some much needed spending restraint and the deficit is moving in the right direction, but Premier Jason Kenney is digging deeper into our pockets with higher income taxes and property taxes,” said Franco Terrazzano, Alberta director for the CTF..“After more than a decade of runaway government spending, Kenney deserves credit for taking air out of the government’s ballooning labour costs, which increased by billions of dollars even when Alberta went through a downturn.”.The CTF said the government is increasing income taxes through bracket creep which means inflation will push taxpayers into higher tax brackets even though their purchasing power hasn’t increased. The finance department has estimated that this would cost taxpayers hundreds of millions of dollars. Budget 2020 also increases provincial property taxes by 3.1 per cent this year..“Premier Kenney promised taxpayers that he would balance the budget without raising taxes, but last year he bent that promise with the bracket creep income tax hike and this year he’s breaking that promise by hiking provincial property taxes,” said Terrazzano..“Overspending by past governments on both sides got us into this mess, but breaking promises and raising taxes won’t help when the province really needs to get spending under control.”.Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.Twitter: Nobby7694
