A new report from the Fraser Institute predicts Alberta’s debt will grow faster than other Canadian provinces, causing an influx in government liabilities.
The Conservative think tank’s recent report says Alberta’s debt-to-GDP ratio has dramatically climbed since 2007.
“Alberta is expected to have the largest percentage increase in this ratio, increasing by 92.6 per cent,” says the report.
“Alberta is unique in that it is the only jurisdiction in Canada to be in a net financial asset position, where the value of financial assets exceeds government liabilities. However, since 2007/08, the province has been sliding towards a net debt position, where debt will exceed financial assets.”
The study says the current government’s plans discourage an improved budget.
“The Alberta government has rejected an election campaign commitment to balance the budget by 2018/19; it now plans to balance the budget by 2019/20,” reads the report.
In his recent statement, Wildrose leader Brian Jean recommended the NDP create a government plan that’s designed to reduce borrowing.
“Without any changes, the NDP plan pulls more money away from front-line services because of higher interest payments, and puts the sustainability of these core programs at risk,” Jean said.
“The NDP have an opportunity in the upcoming budget to back down from their ideological experiments, and put forward moderate and practical strategies to slow down this dramatic increase in borrowing.”
The study also indicates that each Albertan will be in the black by $808 based on net provincial debt projections.