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CTF says spending cap needed to avoid deficit

Author: John Carpay 2001/03/29
Fiscal year-end shows 25.8% real increase in spending since 1996


EDMONTON
: At the end of this 2000-01 fiscal year on March 31, Alberta government spending on programs is 25.8% higher in real terms than in 1996-97. In 1996-97 the government spent $12.6 billion on health, education, and other programs, amounting to $4,517 per Albertan. In 2000-01, program spending was $18.2 billion, or $6,072 per Albertan, an increase of 25.8% after accounting for population growth and inflation.

"The Alberta government must cap its spending to avoid a future deficit," stated John Carpay, Alberta director for the Canadian Taxpayers Federation (CTF). "Much of this spending spree has been fueled by temporary spikes in oil and gas prices," added Carpay. "When oil prices come down, as they surely will, the government will have to cut spending or run a deficit. Albertans just won't stand for a return to deficits."

"In this regard, Alberta should follow Ottawa's lead by limiting overall spending increases to inflation plus population growth," added Carpay.

"Further spending increases threaten the tax cuts which Albertans need to compete in a global economy," added Carpay. "Without a cap on spending, Alberta won't be able to keep its Advantage."

"A spending increase of 25.8% is more than enough. Increases for the 2001-02 budget should be limited to inflation plus population growth. Program spending for 2001-02 should not exceed $19.1 billion."

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