Estimates $4.8 billion deficit and Sustainability Fund gone by January 2014
EDMONTON, AB: The Canadian Taxpayers Federation (CTF) released its plan for a balanced budget today as Alberta Director Derek Fildebrandt met with Finance Minister Doug Horner. The plan, Restoring the Alberta Advantage lays out $3.8 billion in areas for the government to cut in order for the Premier to keep her election commitment to balance the budget by the end of 2013-14 without raising taxes.
“This is a costed plan that demonstrates that if the government is serious, it can keep its commitment to balance the budget in 2013-14 without raising taxes,” stated Fildebrandt. “If the premier is going to keep her word to Albertans, then she will need to cut spending.”
Toping the CTF’s list of savings for the 2013-14 Budget is:
An absolute 7.5 per cent cut in operational spending to save $2.7 billion;
Extending the five-year capital plan over 6 years to save $975 million;
Bringing public sector compensation in line with the private sector to save $1.4 billion;
A 5 per cent reduction in the number of core bureaucrats to save $150 million;
$170 million in cuts to corporate welfare;
An additional $99 million in savings from eliminating the Alberta Enterprise Corporation; and
$199 million from other savings.
“Our plan shows that getting spending back under control is entirely possible if the government has the stomach for it,” said Fildebrandt. “These cuts aren’t painless, but they are not the doomsday scenario that some in government are warning of if we do not raise taxes.”
The CTF estimates that the 2012-13 deficit will be approximately $4.8 billion and that the government is on course to completely deplete the Sustainability Fund by January 3, 2014, requiring the government to fund its operations through debt.
“The government could have gotten away with merely restraining spending increases in the combined rates of inflation and population growth in years past, or modest spending reductions in the last couple of years, but its unwillingness to show restraint has brought Alberta to the point where more muscular action is required,” continued Fildebrandt.
“Kicking the can down the road another year will only compound the problem and necessitate even larger spending cuts.” concluded Fildebrandt.
Fildebrandt will discuss the plan with Wildrose Leader Danielle Smith, Liberal Leader Raj Sherman and NDP Leader Brian Mason later this week.
The CTF’s 56-page submission to the Alberta government can be downloaded here:
Restoring the Alberta Advantage-Complete.pdf
