Alberta
Alberta and B.C. budgets represent two different approaches to government finances
From the Fraser Institute
By Grady Munro and Tegan Hill
” for every $1 of additional revenue enjoyed by both provinces, the Eby government increased spending by more than $6 compared to 79 cents for the Smith government. “
In its recent budget, the Alberta government promised a new approach to provincial finances, with spending restraint and limited debt accumulation. While there’s still work to do, this is a far better approach than the reckless spending and massive debt accumulation of the British Columbia government.
The Smith government projects a $367 million surplus in 2024/25, followed by two more surpluses of $1.4 billion in 2025/26 and $2.6 billion in 2026/27. The government plans to use these surpluses largely to pay down debt, so although provincial net debt (financial assets minus liabilities) is expected to rise slightly in 2024/25 due to increased long-term capital spending (e.g. schools and highways), the debt is projected to decrease 4.1 per cent ($1.7 billion) from 2023/24 to 2026/27.
Alberta’s strong fiscal outlook is largely driven by historically high resource revenues. But while the government plans to increase program spending (total spending minus debt interest costs) nominally over the next three years, spending will grow at a slower rate than population growth and inflation—meaning spending will decline on an inflation-adjusted per-person basis.
The Smith government still must better align spending with stable revenues, but this is an important step in the right direction.
By contrast, B.C.’s 2024 budget projects a $7.9 billion deficit in 2024/25 followed by deficits of $7.8 billion in 2025/26 and $6.3 billion in 2026/27. These deficits, combined with borrowing for capital projects, will drive a projected $55.1 billion (74.7 per cent) increase in provincial net debt from 2023/24 to 2026/27. As a result, the level of net debt projected in 2026/27 ($128.8 billion) is nearly triple the level recorded in 2019/20 ($46.9 billion).
These deficits are due to a substantial increase in provincial spending by the Eby government. Indeed, similar to Alberta, B.C. has recently enjoyed an unexpected surge in revenues, but unlike the Smith government, the Eby government has shown no spending restraint.
From 2023/24 to 2025/26, revenues in B.C. will be a projected $2.0 billion higher than the government projected in last year’s budget, yet the plan for spending over that same period increased by $13.2 billion. For comparison, the Smith government also increased spending in these years relative to its 2023 budget, but did so by $2.1 billion less than the increase in revenues.
In other words, for every $1 of additional revenue enjoyed by both provinces, the Eby government increased spending by more than $6 compared to 79 cents for the Smith government.
The consequences of B.C.’s approach are clear. By spending far outside its means, the Eby government will saddle future generations of British Columbians with tens of billions more in debt that must be financed through taxes. For perspective, debt interest payments will nearly cost a projected $1,000 per British Columbian by 2026/27—that’s taxpayer money no longer available for programs or services. Moreover, continued deficits weaken the government’s ability to deal with future challenges (such as an economic downturn) without taking on more debt and driving up interest costs.
The Alberta and B.C. budgets provide examples of two different approaches to government finances. While there’s more to be done, Alberta is moving in the right direction to help prevent debt accumulation. On the other hand, B.C. is massively increasing spending and debt, to the detriment of British Columbians now and in the future.
Authors:
Show your Alberta side. Buy Local. |
When the going gets tough, Albertans stick together. That’s why Alberta’s government is launching a new campaign to benefit hard-working Albertans.
Global uncertainty is threatening the livelihoods of hard-working Alberta farmers, ranchers, processors and their families. The ‘Buy Local’ campaign, recently launched by Alberta’s government, encourages consumers to eat, drink and buy local to show our unified support for the province’s agriculture and food industry.
The government’s ‘Buy Local’ campaign encourages consumers to buy products from Alberta’s hard-working farmers, ranchers and food processors that produce safe, nutritious food for Albertans, Canadians and the world.
“It’s time to let these hard-working Albertans know we have their back. Now, more than ever, we need to shop local and buy made-in-Alberta products. The next time you are grocery shopping or go out for dinner or a drink with your friends or family, support local to demonstrate your Alberta pride. We are pleased tariffs don’t impact the ag industry right now and will keep advocating for our ag industry.”
Alberta’s government supports consumer choice. We are providing tools to help folks easily identify Alberta- and Canadian-made foods and products. Choosing local products keeps Albertans’ hard-earned dollars in our province. Whether it is farm-fresh vegetables, potatoes, honey, craft beer, frozen food or our world-renowned beef, Alberta has an abundance of fresh foods produced right on our doorstep.
Quick facts
- This summer, Albertans can support local at more than 150 farmers’ markets across the province and meet the folks who make, bake and grow our food.
- In March 2023, the Alberta government launched the ‘Made in Alberta’ voluntary food and beverage labelling program to support local agriculture and food sectors.
- Through direct connections with processors, the program has created the momentum to continue expanding consumer awareness about the ‘Made in Alberta’ label to help shoppers quickly identify foods and beverages produced in our province.
- Made in Alberta product catalogue website
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Alberta
Province to expand services provided by Alberta Sheriffs: New policing option for municipalities
Expanding municipal police service options |
Proposed amendments would help ensure Alberta’s evolving public safety needs are met while also giving municipalities more options for local policing.
As first announced with the introduction of the Public Safety Statutes Amendment Act, 2024, Alberta’s government is considering creating a new independent agency police service to assume the police-like duties currently performed by Alberta Sheriffs. If passed, Bill 49 would lay additional groundwork for the new police service.
Proposed amendments to the Police Act recognize the unique challenges faced by different communities and seek to empower local governments to adopt strategies that effectively respond to their specific safety concerns, enhancing overall public safety across the province.
If passed, Bill 49 would specify that the new agency would be a Crown corporation with an independent board of directors to oversee its day-to-day operations. The new agency would be operationally independent from the government, consistent with all police services in Alberta. Unlike the Alberta Sheriffs, officers in the new police service would be directly employed by the police service rather than by the government.
“With this bill, we are taking the necessary steps to address the unique public safety concerns in communities across Alberta. As we work towards creating an independent agency police service, we are providing an essential component of Alberta’s police framework for years to come. Our aim is for the new agency is to ensure that Albertans are safe in their communities and receive the best possible service when they need it most.”
Additional amendments would allow municipalities to select the new agency as their local police service once it becomes fully operational and the necessary standards, capacity and frameworks are in place. Alberta’s government is committed to ensuring the new agency works collaboratively with all police services to meet the province’s evolving public safety needs and improve law enforcement response times, particularly in rural communities. While the RCMP would remain the official provincial police service, municipalities would have a new option for their local policing needs.
Once established, the agency would strengthen Alberta’s existing policing model and complement the province’s current police services, which include the RCMP, Indigenous police services and municipal police. It would help fill gaps and ensure law enforcement resources are deployed efficiently across the province.
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Made in Alberta! Province makes it easier to support local products with Buy Local program
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