The Redford government warned us to expect an unpleasant budget.
Well, that's one promise they've defintely kept. For many other promises, however, it's a different story.
Last year, the Tories promised (PDF) "...a balanced budget by 2013 with no new taxes and no service cuts."
Even once they realized that promise was in rubbles, they made other assurances. Back in September, Premier Redford vowed that other campaign promises would still be kept despite the deficit. In late November, Finance Minister Doug Horner assured the Legislature that, "We will not deficit finance the operations of this government"
Promise upon promise now lie in ruins following yesterday's budget.
For the sixth straight year, Alberta will run a deficit, and for the first time since 1994, the province will run an operational deficit. For the year that's just ended, the government is expecting a deficit of about $4-billion. All told for the coming fiscal year, the deficit is in the neighborhood of $6-billion.
Mind you, it's tough to know for sure. We now have essentially three budgets - operational, capital, and savings.
The government is talking up the $450-million deficit on the operational side. But factoring all the borrowing on the capital side gives us the much larger figure.
Additionally, the Sustainability Fund that just a few years ago was at 17-billion dollars, is now virtually depleted.
And the borrowing will continue - another $12-billion over the next three years. We were once debt-free but by the time the next election rolls around we will be considerably in debt.
All of this leaves the government with plenty of red ink on its hands and egg on its face. It's not a pretty sight.
Further analysis from Don Braid, Rick Bell, and Graham Thomson
No comments:
Post a Comment