Debt Brake and Balanced Budgets: CTF Alberta 2015-16 Pre-Budget Submission
Click here to read Debt Brake and Balanced Budgets, the CTF's 2015-16 Pre-Budget Submission to the Alberta government.
Debt Brake and Balanced Budgets calls for a ‘debt brake’ – a Swiss-inspired approach to reduce government debt load and stop spending growth. The submission calls on the Alberta government to balance the budget by 2016-17 and pay down the province’s over $15 billion debt as soon as possible.
Alberta is forecast to pay $843 million just to cover the interest payments on the provincial debt in 2015-16, rising to over $1.85 billion for 2019-20.
The CTF’s submission calls for an operational spending cut of 15 per cent to save $6.3 billion, in addition to a legislated spending cap. The CTF recommends:
- 10% reduction in the number of public servants
- Immediate hiring freeze in government
- Immediate 10% salary reduction for government employees
- Government employee pension reform
- 10% cut in MLA salaries allowing them to remain over $114,000
The submission also calls for:
- Bring back the single-rate income tax
- Maintain current royalty rates
- Resist $25/day daycare
- Say no to new tax powers for cities
- Say no to requests for tax money for a Calgary pro sports arena
The CTF submission also commends the government’s nod to transparency and recommends steps to strengthening government accountability.
The Alberta economy has veered off track. Alberta needs a debt brake. By making the tough decisions now, the government can steer the province off the road of uncertainty.