EDMONTON: The Canadian Taxpayers Federation (CTF) gave a mixed reaction to the province's second quarter update released today at the Legislature.

"Alberta's fiscal position is clearly the envy of the country," stated acting CTF director Troy Lanigan noting that resource revenues are $4.65-billion above forecast. "It translates into an expected surplus of $5.5-billion dollars in the current fiscal year."

"The government deserves full marks for allocating $4.0-billion of the surplus to reducing the province's debt," commended Lanigan. "However, of the remaining $1.5-billion surplus less than half -- $485-million - will be returned to Albertans in the form of tax reductions and rebates."

"The vast majority of the remainder, in excess of $1-billion, will be directed to increased spending," stated Lanigan. "The opportunity afforded by these unprecedented surpluses will once again be consumed by increased spending. The Alberta government should be careful not to trap itself into permanent higher spending, and stick to its annual budget plans."

The CTF reiterated its call for mandatory expenditure control that would tie spending increases to inflation and growth in population.