Skip to main content

“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

NEXT DOOR IN ALBERTA …

 


Alberta’s budget deficits and mounting debt are, in part, due to its treatment of non-renewable resource revenues, but establishing new constitutional rules requiring a portion of resource revenues be saved would help stabilize provincial finances, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.

 

“It’s time the Alberta government introduced rules to stabilize this volatile source of revenue and stop the boom-and-bust cycle in government finances,” said Tegan Hill, economist at the Fraser Institute and co-author of A New (Old) Fiscal Rule for Non-Renewable Resource Revenue in Alberta.

 

As a sign of the volatility connected with resource revenues, consider that over the past 50 years, Alberta’s non-renewable resource revenue (adjusted for inflation) ranged from a low of$1.6 billion (1970/71) to a high of $19.0 billion (2005/06). As a share of provincial revenue, it’s ranged from 77.4 per cent (1979/80) to a projected 4.7 per cent in 2020/21—the lowest on record.

 

This volatility has fueled instability in the budget, particularly as the provincial government increased spending to unsustainable levels during periods of relatively high non-renewable resource revenue.

 

The study recommends re-introducing a savings account (the Alberta Sustainability Fund was eliminated in 2013) in which resource revenues can be deposited during periods when resource revenues are high. These savings can then be used to stabilize resource revenues in periods of comparatively low resource revenues.

 

The second recommendation is for the province to reinstitute the rule that requires a portion of non-renewable resource revenues be deposited into the Heritage Fund.

 

Crucially, these rules should be engrained constitutionally so that it is more difficult for future governments to change or simply ignore the rules when finances are tight.

 

“New rules based on the past experiences of the province—and not easily undone by future governments—that establish a predictable level of non-renewable resource revenue for the province’s budgets would help put an end to the boom-and-bust cycle in Alberta’s finances,” said Jason Clemens, executive vice-president of the Fraser Institute and study co-author.

Comments

Post a Comment

Popular posts from this blog

FORSETH: Without a strong local presence, there is NO reason for anyone to tune in to local(?) radio

LOCAL HOMETOWN RADIO IS DYING … and without serious measures put in place, it will likely never see the light of day again. For well over four decades, the Canadian Radio and Television Commission (CRTC) has presided over its’ demise, and for that I say, “Shame”. Without out a word to say enough was enough, the CRTC has allowed corporate Canada to buy up one radio station after the other, and then allowed them to slash staff to the point where some so-called local radio stations do nothing more than air programming that originates from communities well outside the region in which they are located. Case in point?   On CHNL* 610 in Kamloops, the morning show hosted by Vinnie and Randi, DOES NOT originate from Kamloops -- it doesn’t even originate here in BC. It’s a program that Stingray airs across multiple radio stations in Western Canada. It doesn’t end there. Not only are Vinnie and Rando doing mornings on CHNL, but they also show up on sister station Country 103 … and of course o...
5 comments
Read more

Conservative Economic Team Responds to Urgent Industry Concerns

 " For far too long, the BC NDP has ignored the economic challenges facing British Columbians. Manufacturing jobs are vanishing, forestry is in decline, and private sector employment growth has stagnated. Meanwhile, affordability has worsened for both families and businesses. British Columbians deserve better, and we’re here to deliver real solutions to rebuild our economy and create jobs that support everyday working people and their families ." – Gavin Dew, MLA and Shadow Minister for Jobs, Economy, Development, and Innovation.   December 3, 2024, Vancouver, BC – The Conservative economic team met today with business leaders and stakeholders to tackle critical issues impacting British Columbia’s economy. Attended by 9 critics from the Conservative Caucus, this meeting was convened by MLA Gavin Dew – Shadow Minister for Jobs, Economic Development, and Innovation - as a direct response to an October 30th open letter from seven of the province’s largest industry associations. ...
Post a Comment
Read more

WARD STAMER -- We need certainly in our markets, and certainly in our fibre supply, before we no longer have a forest industry in this province

Image Government of BC I think we all realize that the threat of Trump’s 25% tariff is like other provocative statements he’s made in the past. That said, we should have reason to be concerned. Tariffs don’t benefit anyone. A tariff of that magnitude – included on our own softwood lumber exports, will make things more expensive for Americans, and cause friction in the supply chain. If imposed, a twenty-five percent tariff will be equally detrimental to the citizens and economy of the United States, as well as the people of BC. There are two things, however, of equal concern to the threat of punitive tariffs by incoming U.S. President-elect Donald Trump. One is our antiquated stumpage fees. It is a legacy from decades ago, and one incapable of responding to changing market conditions. We need to revamp our stumpage system to better reflect market conditions, and our economic costs. Instead, a value-added tax system will be instantly responsive to current market conditions and will encou...
Post a Comment
Read more

Labels

Show more