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CTF says, "Stop budget 'roller-coaster'"

Author: John Carpay 2001/08/27
EDMONTON: The Canadian Taxpayers Federation (CTF) today called for an end to Alberta's "roller-coaster" budgeting in response to the Government's first-quarter update.

Alberta government spending per person, adjusted for inflation and population growth, declined from $8,291 in 1986 down to $5,114 in 1996, a decrease of 38% in real terms. But since 1996, spending per person has climbed back up to $6,850, in the same range where it was ten years ago under Don Getty. In the past five years, after considering population growth and inflation, Alberta government spending per person has increased 34%.

"Alberta needs a spending control law, to index growth in government spending to the rate of inflation and population growth," stated CTF-Alberta director John Carpay. "If inflation is two percent, and population grows by three percent, then spending should go up five percent, but no more. The government now has a window of opportunity to pass a spending control law before the next budget is finalized in February."

Since 1995, the state of Washington has had a law to index growth in government spending, pegging it to inflation and population growth. Government spending per person stays constant in real terms.

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