• 6.3% increase in spending more than doubles inflation and population growth rate
• Surplus would have been $3.9 billion had spending been controlled

“If not checked, Alberta would find itself in a chronic deficit position with more and more tax dollars diverted from services for Albertans to paying interest on debt. We would be passing to our children and grandchildren the responsibility of paying the bills for the services we enjoy today.”

- Premier Don Getty’s Finance Minister Dick Johnston – Budget Speech 1987

“And we will not allow annual deficits to aggregate into a large debt to burden future generations. Albertans want to pay for services, not service interest on debt.”

- Premier Ed Stelmach’s Finance Minister Ted Morton – Budget Speech 2010

EDMONTON: The Canadian Taxpayers Federation (CTF) reacted today to the release of the 2010 Alberta budget, calling it “very disappointing.”

“This is déjà vu all over again,” said CTF-Alberta director Scott Hennig. “The Getty government tried to promise its way out of red ink in the 80s and it left Alberta bankrupt, we’re on that road once again.”

Last year the Alberta government projected a deficit in 2010-11 of $2.4 billion. They have overshot that amount by nearly double, now projecting a $4.7 billion deficit.

“If they can’t even manage to follow a one-year plan, why should anybody believe they are going to be able to achieve a three-year plan to balance the books or a five-year health funding plan,” questioned Hennig.

“2009-10 will have a $3.6 billion deficit and 2010-11 will have a $4.7 billion deficit. They’re going the wrong way. At this pace, the deficit will be going up again next year, not down.” continued Hennig.

Budget-to-budget operational spending is slated to grow by 6.3 per cent in Budget 2010, doubling last year’s inflation and population growth rate estimated by the CTF to be 2.64 per cent.

Had the government limited spending to the inflation and population growth rate, as per CTF recommendations, starting in 2005 the government would run a $4.2 billion surplus in 2009-10 and a $3.9 billion surplus in 2010-11.

“Don Getty’s governments always had three to five year plans to balance the books, yet they never once did. You can either promise balanced budgets or you can take steps to balance the budget. Clearly the Stelmach government thinks that Getty’s failed plans are the blueprints to follow,” concluded Hennig.

The CTF made 23 recommendations in their 2010 Budget submission.  A Blueprint for a Balanced Budget can be found on-line at: /media/downloadable/Blueprint%20for%20a%20Balanced%20Budget%20(WEB).pdf