The Canadian Taxpayers Federation has given the stamp of approval to Alberta Premier Danielle Smith’s first budget.
In Tuesday’s budget, introduced just four months after Smith became premier and three months before a spring election, the United Conservative Party government signalled it would bring back legislation requiring balanced budgets, save for exceptional circumstances.
The CTF praised the budget for focusing on paying down the debt, balanced budgets and saving for the future.
“You can’t provide for your family if you’re counting on winning the lottery every year,” said CTF Alberta Director Kris Sims.
“Committing to balanced budgets, debt repayment and saving for a rainy day shows this government is serious about not repeating the mistakes of the past.”
If passed, the $68.3 billion budget would raise expenses by $2.6 billion to $68.3 billion, marking an approximately 4% increase in spending from its forecasted expenses for the current fiscal year. New funds will result in 7,600 new government workers, mostly in health care and education.
The health budget will reach a record high of $24.5 billion, an increase of 4.1%. Smith campaigned on fixing surgical backlogs and ambulance and emergency room wait times. The budget would leave the province with a $2.4-billion surplus by March 2024, following a surplus of more than $10 billion last year.
At a news conference on Tuesday, Finance Minister Travis Toews said the province is securing the health and education of Albertans by increasing access to family doctors, surgeries and emergency services.
“And making sure our children and grandchildren have the education system they need to reach their full potential.”
The government has promised billions in affordability measures to lower Albertans’ skyrocketing utility bills, for example. Another $23-billion is pledged to infrastructure over the next three years to improve highways and hospitals.
Oil revenues continue to provide a massive windfall for the province. The UCP will lower the province’s debt by about $15 billion from 2021-22 to 2023-24, leaving total provincial debt at $75 billion.
Sims said former Alberta premier Ralph Klein committed to putting 75% of the province’s surplus towards debt in 1999.
“That rule kept his government from blowing the surplus each year and remaining committed to making Alberta debt free,” Sims said. “Following Klein’s lead is a strong showing that this government is committed to debt repayment as well.”
