CTF to Alberta government: You're going the wrong way!
EDMONTON: The Canadian Taxpayers Federation (CTF) is calling on Alberta MLAs to amend Bill 24 (Fiscal Responsibility Amendment Act, 2006) to decrease the amount of resource revenues used for budgeting back to $4 billion, rather than increasing it to $5.3 billion.
Bill 24 currently proposes to increase the initial spending cap of resource revenues from the current $4.75 billion up to $5.3 billion, the third increase in as many years.
"This government is playing a dangerous game of chicken by increasing their reliance on non-renewable, non-reliable, resource revenues to fund core programs like health, education and children's services," said CTF-Alberta director, Scott Hennig.
"If anything the government should be reducing their reliance on oil and gas revenues," continued Hennig.
The Fiscal Responsibility Act was first amended in 2003 to establish the Sustainability Fund and cap the amount of initial spending of resource revenues at $3.5 billion. A year later that cap was raised to $4 billion. In 2005, the cap was once again raised to $4.75 billion.
"Albertans should be worried about this trend," concluded Hennig. "If resource revenues drop to where they were, just in 2000, this new spending cap will force the province to either cut program funding or dip into savings to balance their budget."
When first established in 2003, the spending cap represented nearly 150% of the ten-year-low of non-renewable resource revenues collected by the province (1998-99). If Bill 24 is passed in its current form the province would now be spending more than double what its ten-year-low in non-renewable resource revenues collected.
Bill 24 currently proposes to increase the initial spending cap of resource revenues from the current $4.75 billion up to $5.3 billion, the third increase in as many years.
"This government is playing a dangerous game of chicken by increasing their reliance on non-renewable, non-reliable, resource revenues to fund core programs like health, education and children's services," said CTF-Alberta director, Scott Hennig.
"If anything the government should be reducing their reliance on oil and gas revenues," continued Hennig.
The Fiscal Responsibility Act was first amended in 2003 to establish the Sustainability Fund and cap the amount of initial spending of resource revenues at $3.5 billion. A year later that cap was raised to $4 billion. In 2005, the cap was once again raised to $4.75 billion.
"Albertans should be worried about this trend," concluded Hennig. "If resource revenues drop to where they were, just in 2000, this new spending cap will force the province to either cut program funding or dip into savings to balance their budget."
When first established in 2003, the spending cap represented nearly 150% of the ten-year-low of non-renewable resource revenues collected by the province (1998-99). If Bill 24 is passed in its current form the province would now be spending more than double what its ten-year-low in non-renewable resource revenues collected.