What is Happening?
When the government spends more than they receive in tax revenues, the difference has to be made up either through borrowing or from prior year’s savings. The Government of Alberta has spent more than it has received consistently since 2010 with exception of one year. This year, the government is spending almost 25% more than it receives in revenues. This type of spending is unsustainable.
How Does This Affect Me?
These multi-year deficits are placing strain on the provincial finances and will lead to higher taxes and lower levels of service delivery in order to make up the difference. This means that future generations will receive less value from their government while paying higher costs.
The Better Way?
The Alberta Party Caucus would implement a priority based budgeting system which would maintain consistently balanced budgets. By constraining spending to within an acceptable range of revenues, the province would not require mass borrowing to operate on a day-to-day level. This would hold Ministries accountable for their spending and ensure that future generations are not burdened by current poor fiscal management decisions.
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