Alberta Premier Danielle Smith’s government will table its first budget at the end of February. Article content As Alberta Premier Danielle Smith’s government prepares to table its first budget at the end of this month, it faces a fundamental choice. Due largely to a record high windfall in resource revenues, the province will run a projected $12.3-billion surplus this fiscal year, with additional surpluses expected over the next two years. But Alberta’s history is quite clear. Spending these surpluses, as past governments have often done, will only lead the province back into deficits when resource revenues decline, as they inevitably will do. Instead of wasting this extraordinary opportunity and setting itself up for hard times down the road by spending these temporary revenue windfalls, the government should use the surpluses to improve Alberta’s finances and economy for the long-term. Article content A new essay series published by the Fraser Institute outlines three policy options for Alberta’s surpluses. Each avoids spending increases while establishing a path for Alberta’s improved long-term prosperity. Option one: University of Calgary economist Trevor Tombe recommends the government consider using the surpluses to eliminate the province’s debt. Why? Because the interest rate the government pays to […]
