Putting the Alberta Budget on a New Trajectory

Abstract

This paper analyzes Alberta’s fiscal problem in terms of the size of the current deficits and the growth trajectory of the debt. We endeavor to put the province’s fiscal problem in terms to which people can relate. In addition to analyzing the scale of the problem, the paper will consider some of the policy choices that the Alberta government could make that would begin to align revenue and spending. Although the deficit cannot be eliminated in one year, more can be done now to reduce the debt build-up, as it will take time to eventually achieve a balanced budget. As well as recommending short and medium-term measures to better align spending and revenue, we present a longer term plan to balance the budget over a number years with specific deficit targets for each year.