Balance between borrowing and spending

Times Contributor     

 

Interim Premier Doug Horner, speaking as the finance minister, looks for balance through the Conservative borrowing and spending strategy.

“Government will spend $38.5 billion in operating expense in 2014-15 to deliver important core services, while responding to the challenges of rapid population growth. This is 3.7 per cent more than the previous year; government is maintaining fiscal discipline because this increase is significantly below the combined rate of inflation and population growth—and we will continue to be responsible,” said Horner in a press release. 

He stated that they are also looking inwards at government programs and improving not only the quality of the services they provide, but the efficiencies within those services. 

“Through results-based budgeting, government has reviewed 375 programs to ensure we are maximizing the use of taxpayer money—a comprehensive review that will continue to change the way government does business,” said Horner.

Horner supported the decision to borrow money to support infrastructure in Alberta.

“Albertans want government to continue investing in infrastructure, and are comfortable with financing these long-term assets, as long as it makes financial sense,” said Horner. “And it makes financial sense to borrow at much lower rates than what our savings are currently earning. With our population growing by nearly 300 people a day, we can’t afford to wait. Borrowing to build now protects us from construction cost increases.”

He said that because Alberta has a triple credit rating it allows us to lock in at the lowest possible rates. In exchange, Albertans have tangible assets like schools roads and hospitals.