EDMONTON - The Canadian Taxpayers Federation today blasted the Alberta government for making increased spending its number one priority -- ahead of tax cuts and debt repayment. The Federation was responding to the province's second quarter fiscal update.

Federation director Mitchel Gray pointed out that of this year's $2.8 billion surplus, 50% will be spent on new programs, 49% will be applied to debt reduction and only 1% will be put towards tax relief.

"It's painfully clear that the province has no intention of honoring its commitment to deep and meaningful tax relief," said Gray. "Every time this government has the opportunity to reduce taxes they opt for massive spending instead."

The Federation pointed out that the government could have given every Alberta taxpayer a rebate of $1,000 with the money it has committed to new spending. "This surplus has been taken out of Albertans' pockets," said Gray. "It's our money and we should get some of it back."

Gray said that today's fiscal update indicates that the government has completely lost touch with Albertans' priorities. "The latest available survey indicates that Albertans want debt reduction first, tax cuts second and increased spending last," said Gray. "Obviously the government's agenda is not the people's agenda."

The Federation further questioned the proposition that massive amounts of new spending are needed. "We are second only to Newfoundland in the amount we spend on programs on a per capita basis," remarked Gray. "How much spending is enough "

The Federation suggested that the province reevaluate its spending to tax cut ratio. "Albertans want to see some balance - that means scaling back spending, dedicating 75% of surpluses to the debt, and laying down some tax relief. We've waited long enough."