Alberta Government Says Feds’ Budget Lacks Fiscal Responsibility

Alberta Finance Minister Travis Toews. The Canadian Press

The Alberta government expressed concern about the level of spending in the federal budget tabled Tuesday, which anticipates $43 billion in net new spending over six years, even as federal debt has hit an eyewatering $1.18 trillion.

President of the Alberta Treasury Board and Minister of Finance Travis Toews said the province was analyzing the federal budget closely to determine its impact on Alberta.

“We are concerned by the level of spending and lack of fiscal responsibility exhibited in this budget and its contribution to the country’s already worrisome debt levels,” said a statement issued by Alberta on March 28.

Toews said the newly-tabled budget will “encumber” Canadians and Albertans “with a doubling of debt servicing costs over the course of the fiscal plan.”

The province criticized the government for not including “a path to balance.” Toews said that it was contrary to recent promises by the federal government that the budget “would represent a fiscally responsible plan.”

Toews said the government was “encouraged” to see more details on the previously announced hydrogen investment tax credit, and would be considering how it would affect “the overall competitiveness of the hydrogen industry” in the province.

While the budget acknowledged “the federal government’s burdensome environmental impact assessment process,” said the statement, “there’s nothing in this budget that will fundamentally change the narrative on business investment that’s been stagnant since 2015.”

The federal government’s budget indicates the country will face a $43 billion deficit for the fiscal year ending this month, and it will be $40.1 billion by March 2024.

By March 2028, the government projects it will only be $14 billion in debt, and the projected revenues will come from tax increases on wealthy individuals and businesses.

The budget includes $83 billion for tax credits for clean energy and electricity until 2034–35. It also includes $13 billion for the projected cost of five more years of a Canada dental benefit, which is $7.3 billion higher than initially estimated. The proposed budget suggests the dental care program could be expanded to include families earning less than $90,000 annually.

The Liberal government plans to direct $200 million to the defence department so that the Canadian military can donate equipment and battle tanks to Ukraine.

It also budgets $56 million for “protecting diaspora communities and all Canadians from foreign interference, threats, and covert activities.”

The government will reportedly amend the Criminal Code to lower the amount of interest that can be charged on loans, with a suggested proposed rate of 35 percent.

The budget, if passed, suggests the Liberals will implement a national pharmcare program by the end of 2023 and offer a grocery benefit for low-income families. The one-time rebate will provide single Canadians with $234 for groceries, and up to $467 for families.

The Conservatives have said they will not vote for the tabled federal budget, while NDP Leader Jagmeet Singh said his party will support it, even though there are aspects the party “was not satisfied with.”

Singh said, “It’s something that’s going to make a difference in people’s lives.”

The Canadian Press and Rahul Vaidyanath contributed to this report.