What is Happening?
The province’s financial assets include everything the Government of Alberta owns except for infrastructure. When compared to what the province owes, this measure shows how sustainable government operations are. As of 2016, the province has more debt than financial assets, meaning future generations will have to pick up the tab for today’s spending.
How Does This Affect Me?
When the government is not willing to make tough choices today and relies on borrowing to finance its operations, the province becomes financially unsustainable. This means that in the future either taxes will have to increase, or that vital services must be eliminated in order to recover. What makes the situation worse is that debt is addictive. This means that as more borrowing occurs it becomes harder and harder for the government to stop. Eventually this behavior will lead to drastic cuts that will impair all Albertans.
The Better Way?
The Alberta Party Caucus would work to reinstate the 15% debt to GDP requirement which would limit the amount of debt the government could take on. As well, this limit is a requirement for the Province to regain its AAA credit rating.
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