CALGARY – While the Alberta government made some positive decisions about saving for the future in its 2013/14 budget, a broader discussion about the right mix of revenue and debt to fund future strategic investments is needed, according to analysis from the Canada West Foundation.
“The province was facing a significant revenue shortfall prior to the budget and had some tough decisions to make,” notes Senior Economist Michael Holden. “Alberta could have raised taxes or dramatically cut spending. Instead, it chose to freeze operating spending and continue to make strategic capital investments. These efforts demonstrate how the province is attempting to address and grow its way out of the deficit.”
One welcome development noted in the Foundation’s post-budget analysis was the decision to begin reinvesting in the Alberta Heritage Fund. While the amounts will be modest in the near term, the decision to make legislated contributions to the Fund is a positive development and will help future generations benefit from Alberta’s resource wealth.
The province took important steps in two additional areas: continued investment in infrastructure and increased funding for international relations. “International trade and market access are critical to Alberta’s economy,” argues Dylan Jones, President & CEO. “By taking steps to improve trade and trade relations, Alberta is on the right track to secure long-term prosperity.”
More detailed analysis of Alberta’s budget can be found here.
Canada West Foundation is the only think tank dedicated to being the objective, non-partisan voice for issues of vital concern to Western Canadians. For over 40 years, through its research and commentary, the Foundation has contributed to better government decisions and a stronger Canadian economy.