WATCH ABOVE: Policy experts from both ends of the political spectrum are calling out the province, calling its ways ‘fiscally irresponsible.’ Eric Szeto reports.
EDMONTON – A right-leaning think tank is blaming population growth and spending increases well above inflation for the current budget crisis in Alberta.
The Fraser Institute says the province has spent $49 billion more than necessary, mostly in unreformed public-sector pensions and public-sector contracts that were double the rate of inflation.
Author Mark Milke calls his report “Fumbling the Alberta Advantage.”
He says Premier Jim Prentice’s warning that the drop in oil prices will drain $7 billion from expected government revenues ignores the effect of past decisions to ramp up program spending.
READ MORE: Albertans might have to get used to the idea of a deficit: Prentice
The study also notes that the increase in program expenditures has handcuffed the government in terms of options in such areas such as capital spending, tax relief and deposits into the Alberta
Heritage Savings Trust Fund.
The last government deposit into the province’s rainy day fund happened in 2006-07.
With files from CHQR, CHED
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