The Canadian Taxpayers Federation (CTF) is urging the Alberta government to exercise caution despite an improved fiscal outlook, highlighting concerns over rising debt and upcoming government union contract negotiations.The Alberta government’s first quarter fiscal update, released Thursday, revealed a forecasted surplus of $2.9 billion, a significant increase from February's initial projection of just $367 million. However, alongside this positive development, the provincial debt is expected to reach $86.1 billion by the end of the fiscal year, an increase of $4.2 billion from the previous year.“It’s very good news to see the provincial surplus increasing, but taxpayers are concerned the debt is still going up,” said Kris Sims, Alberta Director for the CTF. She commended Premier Danielle Smith for enacting legislation to bolster the Heritage Fund but emphasized the need for the government to fulfill its promise of cutting income taxes.Despite the surplus, the government faces mounting financial pressures. Interest on the debt is projected to cost $3.2 billion this fiscal year. Additionally, government spending is now estimated at $73.2 billion, an increase of $101 million from Budget 2024.Finance Minister Nate Horner acknowledged the challenges ahead, particularly with ongoing collective bargaining negotiations with thousands of public sector workers, including teachers and nurses. He reiterated the government's commitment to cutting personal income taxes to save Albertans $1.4 billion annually.“Even though this is an improved surplus, the government doesn’t have cash to spare, so it can’t be blowing the budget on big pay hikes for government unions this fall,” Sims warned. “The Alberta government needs to deliver on its promise to cut income taxes.”As Alberta’s revenue is expected to climb to $76.2 billion — $2.7 billion higher than initially estimated — the CTF is calling for fiscal prudence to ensure the province doesn’t lose ground amid rising financial obligations.
The Canadian Taxpayers Federation (CTF) is urging the Alberta government to exercise caution despite an improved fiscal outlook, highlighting concerns over rising debt and upcoming government union contract negotiations.The Alberta government’s first quarter fiscal update, released Thursday, revealed a forecasted surplus of $2.9 billion, a significant increase from February's initial projection of just $367 million. However, alongside this positive development, the provincial debt is expected to reach $86.1 billion by the end of the fiscal year, an increase of $4.2 billion from the previous year.“It’s very good news to see the provincial surplus increasing, but taxpayers are concerned the debt is still going up,” said Kris Sims, Alberta Director for the CTF. She commended Premier Danielle Smith for enacting legislation to bolster the Heritage Fund but emphasized the need for the government to fulfill its promise of cutting income taxes.Despite the surplus, the government faces mounting financial pressures. Interest on the debt is projected to cost $3.2 billion this fiscal year. Additionally, government spending is now estimated at $73.2 billion, an increase of $101 million from Budget 2024.Finance Minister Nate Horner acknowledged the challenges ahead, particularly with ongoing collective bargaining negotiations with thousands of public sector workers, including teachers and nurses. He reiterated the government's commitment to cutting personal income taxes to save Albertans $1.4 billion annually.“Even though this is an improved surplus, the government doesn’t have cash to spare, so it can’t be blowing the budget on big pay hikes for government unions this fall,” Sims warned. “The Alberta government needs to deliver on its promise to cut income taxes.”As Alberta’s revenue is expected to climb to $76.2 billion — $2.7 billion higher than initially estimated — the CTF is calling for fiscal prudence to ensure the province doesn’t lose ground amid rising financial obligations.
