RELEASE: Years to Balance Budget: NDP 13, UCP 9, FCP 3Published on January 17, 2019
RELEASE: Years to Balance Budget: NDP 13, UCP 9, FCP 3
EDMONTON, AB: Today the Freedom Conservative Party (FCP) released a report assessing the credibility of the budget plans of the NDP, Tories, and the FCP.
The Alberta Government’s 2018/19 Second Quarter Fiscal Update showed that, despite the NDP’s reassurances, there is no credible path to balance the Alberta budget in the short or medium term, without either taking significant steps to get government spending under control or raising taxes.
Calculations, detailed in the report, show that:
- Extrapolations of current plans would see the NDP balance the budget in 13 years (2031/32), UCP in 9 years (2027/28), and FCP in 3 years (2021/22).
- Limiting spending increases to the rate of population growth plus inflation has no chance of balancing the province’s consolidated budget (change in net financial assets) within one hundred years.
- The NDP’s own budget projections, if they can be believed, would only balance the budget by 2031/32, rather than by 2023/24 as they currently claim.
- The Tories have failed to release any detail about their plans, but even a generous interpretation of their limited public statements suggests a plan that would only balance the budget by 2027/28.
- The FCP’s plan to cut spending in year one, and then hold spending flat, would balance the province’s consolidated budget before the end of the next legislative term, in 2021/22.
“The NDP’s public balanced budget date is as phony as the last four fake balanced budget dates they have given Albertans. While the NDP projects forward three years, extrapolating their own data, a child born today would be half way through high school by the time the budget is balanced.”
“The Tories have made vague and general statements about restraining growth in spending to balance the budget but has thus far provided zero detail. Based on a best case scenario interpretation of Tory claims around spending restraint, our research shows that it would take an additional nine years to balance the budget under their plan. Put another way, a child born the year Ed Stelmach put Alberta back into deficit (2008) would be halfway through university by the time the budget is balanced under their plan. If the Tories disagree with these calculations, then we invite them to release the details of their own plan so we can update these numbers.” – Derek Fildebrandt, FCP Leader
“Fildebrandt’s [Balanced Budget Plan] contained more information than the government’s own numbers.” – Trevor Tombe, Associate Professor of Economics, University of Calgary
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