1% budget cut isn’t going to cut it

EDMONTON: The Canadian Taxpayers Federation (CTF) reacted today to the Alberta government’s release of their 2nd quarter fiscal update.

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“A stronger economy, not any real action on behalf of this government is to thank for the lower than expected budget deficit for 2009-10,” said CTF Alberta Director Scott Hennig. “If it wasn’t for higher corporate tax revenues and higher returns on the Heritage Fund, the deficit would have hardly changed from the 1st quarter.” The CTF also noted while the government found $430 million in savings, overall expenditures are still projected to rise by $575 million this year. “It’s tough to applaud the government for finding savings that amount to a 1.2% cut in the budget, when they are still spending 1.6% more than budgeted,” continued Hennig. “Even when they are supposed to be cutting, they can’t keep themselves from increasing spending.” The CTF is calling on the government to balance the budget in 2010-11. Suggested budget cuts could include:

• Extending the two –year 2010-12 Capital plan ($16 billion) to four years – Savings: $4 billion per year
• Eliminating all left over funding in the Carbon Capture fund
• Eliminating the Venture Capital Fund – One-time savings: $100 million
• Reversing the entire MLA and cabinet pay hike from 2008 – Savings: approx $2 million
• Eliminating the MLA severance payments
• Eliminating all non-necessity travel and hospitality
• Eliminating the Alberta Film Development Program

Further details and additional budget cuts will be included in the CTF’s 2010 Pre-budget submission to the Alberta government.

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