Listen Live

Alberta budget to create $58 billion deficit

Alberta’s budget is going heavily into the red to deal with the economic downturn.

Borrowing will almost double by 2018 as the province moves to be almost $58 billion in debt within three years. The deficit this year is $10.4 billion, which will grow another $10 billion next year and $8 billion the year after that, with no expectation of balancing the books before 2024.

Finance Minister Joe Ceci says they don’t want to make any reckless or extreme cuts to services and investments.
“With the lowest debt-to-GDP ratio in Canada, and with community infrastructure throughout Alberta in desperate need of attention, failing to act would leave a terrible legacy of over-crowded classrooms, longer healthcare wait lists, and decaying infrastructure.”
Instead of making major cuts to public services and investments, the province is trying to reduce the cost of government. That includes amalgamating or dissolving 26 agencies, boards, and commissions to save $33 million over three years, and cutting salaries and supplies in departments by two per cent to save another $121 million.
“When oil prices fell in the past, Alberta governments responded by making reckless and extreme cuts to public services. Some say we should turn the clock back and do the same things today, but on this side of the legislature, we fundamentally disagree,” says Ceci.
However, certain projects will be unfunded. The budget document states, “As part of the commitment to transparency and openness, for the first time the government is presenting a list of unfunded capital projects as an addendum to the Budget 2016 Capital Plan.” For Lloydminster and area, Lakeland College will get hit twice, as 2 unfunded capital projects are Lakeland’s Animal Health Technology Clinic and the college’s Dairy Barn.
Additionally, when the carbon tax is brought in on January 1st of 2017, it will cost a household earning more than $100,000 about $500 a year by 2018. It is, however, expected to bring in an estimated $274 million in the shortened 2016/2017 fiscal year, and then $1.7 billion by 2018/2019. Couples earning less than $100,000 and individuals earning less than $51,000 will get the $500 back in a rebate. As well, the province has also introduced two new tax credits worth $250 million to encourage investment in small and medium-sized businesses.
- Advertisement -

Related Articles

- Advertisement -

Latest News

Battlefords RCMP seek suspects in robbery, assualt

Battlefords RCMP seek your help to find two men who may be driving a blue four-door 2015 Hyundai Sonata car with Saskatchewan licence plate 786 LHD. The duo is suspected to be involved in a robbery, and assault.

Sask Free Fishing Weekend, Jul 12-13

The fishing just got real as Saskatchewan is opening its waters for you to cast a line without a licence this weekend, July 12-13.

Town of Wainwright has lowest cost of living in Alberta

Overall for 2024, on all items, Wainwright comes in at 92.5 meaning its about eight per cent cheaper to buy something in Wainwright compared to Edmonton. Lloydminster comes in at 94.6, meaning prices on average are about two per cent more expensive than Wainwright.

Road expansion for Cenovus Energy Hub begins July 15

If your regular commute takes you along 40 Avenue, from July 15 you will have to adjust that as Lloydminster road crews will lead road upgrades near the soon to be completed Cenovus Energy Hub.

Grace United cancels Sunday service following small fire

In the aftermath of the minor fire at Grace United Church, Lloydminster on Thursday July 3, Sunday service has been cancelled as the church deals with cleanup.
- Advertisement -