EDMONTON: The Canadian Taxpayers Federation (CTF) today applauded the Alberta Government for honoring its commitment to apply 75% of this year's budget surplus - a whopping $4.5 billion -- to the province's debt. At the same time the Federation cautioned against further increases in unbudgeted spending and called for substantial tax cuts.

"Albertans should be elated with the government's debt pay-down," said CTF Alberta Director Mitchel Gray. "This massive cut to our debt will dramatically reduce interest payments saving us billions of dollars over the long run."

Gray said that the remainder of the surplus should be put towards tax cuts. "Albertans have been waiting - and are still waiting - to receive a tax cut as a result of these huge, recurring surpluses. It's time for a dividend."

The Federation suggested that the province could still reduce personal income taxes by at least $500 million saving the average Alberta taxpayer more than $350 a year. "People need relief from our oppressive tax burden right now - not next year or sometime down the road," said Gray.

The Federation pointed out that the province has already spent $769 million of this year's $5.8 billion surplus for unbudgeted measures while failing to offer any tax cuts.

Gray said that the government should resist the temptation to spend the remainder of the surplus on new programs instead of offering up tax relief. "Program spending has increased by 37% over the last five years while the personal income tax rate has declined by only 1.5% - it's time to balance the scales."

"The Klein administration deserves a pat on the back for its prudent fiscal management but the job is far from over," stated Gray. "It's time for a tax cut."