Alberta’s budget is falling short compared to other energy-rich areas in North America.
A Fraser Institute report compares the government’s bank account to other provinces and American states. It says Alberta was one of three jurisdictions to have a deficit after the recession during the 2011-2012 fiscal year.
“Considering the strength of the Alberta economy, most Albertans likely assume that the province’s finances are in order, but when compared to other energy-producing provinces and states, Alberta loses its luster,” said co-author Livio Di Matteo, in a news release.
Authors say it’s not a lack of revenue, it’s the province’s spending habits. It notes the province’s deficit ballooned from 0.1 per cent of provincial spending to almost seven per cent from 2012 to 2013.
“Increased government spending—not a dearth of revenues—has saddled Alberta with budgets deficits at a time when most other energy-producing jurisdictions in North America enjoy surpluses,” Di Matteo said.
The report says during the same time, Saskatchewan’s debt dropped by $2.2 billion, while Newfoundland and Labrador’s reduced by $1.6 billion.
