"Cap spending at $19.2 billion," says taxpayers federation
Author:
John Carpay
2001/04/19
EDMONTON: Alberta's government spends more per capita than any other province in Canada, except P.E.I. which receives 45% of its provincial program dollars from Ottawa. Per capita program spending in Alberta in 1990-91 was $6,072, ahead of B.C. ($5,345), Saskatchewan ($5,169), Manitoba ($5,334), Ontario ($4,541) and Quebec ($5,668).
Not only is Alberta the highest spending provincial government, but per capita spending in real terms, after accounting for inflation and population growth, is 7% higher than it was in 1990 under Don Getty.
In 1990-91, the Getty administration spent $11.5 billion on programs, when Alberta's population was 2.5 million. In 2001 constant dollars, that was $5,849 per capita. By 1994-95 spending was down to $4,641 (in 2001 constant dollars), but by 1999-2000 it was back up to $5,850 again. This past fiscal year of 2000-01, per capita program spending was 7% higher in real terms than in 1990-91.
"It's time for Alberta's government to look seriously at spending smarter and better, rather than spending more," said John Carpay, Alberta Director for the Canadian Taxpayers Federation. "This Tuesday's budget should limit program spending to $19.2 billion, which would be the same as last year's $18.2 billion, plus inflation and population growth. Program spending is already 7% higher than it was in 1990, and a further increase would be irresponsible," added Carpay.
The Canadian Taxpayers Federation's call for a spending cap comes in the midst of speculation of a $10 billion surplus from high oil and gas prices, which Carpay said the government should not count on as a constant.
In 1998-99 the Alberta government received only $2.4 billion in resource revenues. In 1990-96, resource revenues averaged $2.6 billion annually.
"The government shouldn't rely on more than $2.5 billion in oil and gas revenues. Anything more should go 100% towards debt repayment, not into more program spending," stated Carpay.