In coming out of the lowest days of the pandemic to last week, Alberta saw a swing in its economic fortunes displayed in its newly released budget.
The Alberta budget was released last week following the throne speech and it touts a forecasted $500 million surplus. That could be even larger as oil prices surge amid global insecurity. MLA for Drumheller-Stettler Nate Horner says it was a combination of rising revenues and prudent budgeting.
“We are very excited to see a projected $500 million surplus and balanced budget, it’s great to see,” he said. “No doubt it is because of the really strong energy prices we are seeing, that definitely did a lot of the heavy lifting. I would note if it wasn’t for us turning down the trajectory on the spend government, it still wouldn’t have been possible. If we had kept the spending trajectory in line we inherited, it would still be a 5 or 6 billion dollar deficit.”
He notes with geopolitical risk right now the budget is prudent.
“Even though oil is higher than we forecasted right now and is expected to go higher, we have seen it go to zero not long ago. The people of Alberta want us to be cautious, and I do think at $70 WTI in this budget, if all things go like they look like they will, hopefully, there is some upside for the province this year. But I think it is important to be cautious too because we see such big swings,” said Horner.
He says there has also been significant investment in other industries and diversifying of the economy.
While The McKinnon Report released a couple of years ago focuses on spending, he says there has to be an inquiry into revenues.
“If you follow the finance minister closely, you’ll find it is a conversation he has already started and one he desperately wants to have with Albertans. If you have $80 oil, there is probably not a structural deficit in Alberta. If you don’t, there certainly is. I think it has to be a conversation we have with Albertans over the course of this year,” he said.
He said in the budget there is a substantial increase in funding in education, with a 1.7 per cent overall spending increase. It also has a 1.5 per cent increase in Albertans’ education tax.
Also budgeted is an expansion to the Red Deer Regional Hospital and spending on EMS.
“We have heard loud and clear about the issue with ambulance and rural ambulance, and there is a committee built right now that is looking at fixing some of the structural issues, but I think this $64 million towards EMS, I am very happy to see that,’’ said Horner.
He also is happy to see funds dedicated to rural recruitment and retention for physicians and nurses. There is also an expansion of seats for students at the University of Calgary for veterinarians.
Many in the province over the last year are concerned about inflation.
“As an MLA, the number one concern I hear outside of big picture political issues is affordability, cost of living, electricity. Those things are all being looked at and discussed, and extremely complicated.”
The budget did look at possible natural gas rebates as Alberta residents deal with skyrocketing prices. This will not come until October.
