CTF encourages premier to stick to balanced budget by 2012
Getty-like extensions on balanced budget target won’t work

EDMONTON, AB: The Canadian Taxpayers Federation (CTF) reacted today to an Edmonton Sun interview with Premier Stelmach suggesting his government is considering breaking their commitment to be “back in the black in 2012.”

“There is no excuse for this government not to balance their budget,” said CTF-Alberta director Scott Hennig. “The Alberta government is the second highest spending province in Canada.”

“Albertans have stomached these deficits, largely because there was light at the end of the tunnel with the Premier’s promise to be ‘back in the black by 2012,’” continued Hennig. “But if the Premier now breaks his word it will be awfully tough to believe any ‘new’ targets or promises.”

Premier Don Getty’s government had a long history of missing their balanced budget targets. In 1986 the Getty government promised the budget would be balanced by 1991. In 1989, they promised it would be balanced by 1992. In 1991, the Getty government introduced their infamous “fudget-budget” that appeared to be balanced, but alas was nowhere close ($2.6 billion deficit). In 1992, the Getty government once again promised to balance the budget by 1995.

“As former Premier Don Getty proved, once you start extending your balanced budget targets, it’s tough to stop,” continued Hennig. “It’s hard to understand why Premier Stelmach would consider following the poor example set by Premier Getty."

Recently, the CTF made its annual pre-budget submission to Finance Minister Ted Morton. In its submission entitled “Roadmap to a Balanced Budget,” the CTF makes 25 recommendations to the provincial government for short, medium and long term solutions to balance the budget and put the province back on the right fiscal track. The CTF submission shows how the government could balance their budget by 2011, one year ahead of their 2012 target.

“If anything, the Premier should be moving forward his balanced budget target, not moving it out,” concluded Hennig.