Horner unveils budget

Times Contributor     

 

Provincial Finance Minister and now Interim Premier Doug Horner wheeled a shopping cart full of goodies into the legislature on March 6, showing the Conservative government is still able to bring home the goods, despite pressures from critics, fluctuations in oil and gas markets and the withdrawals needed for damage control for the 2013 floods.

“Alberta’s fiscal position is turning the corner to a brighter future. With Budget 2014, we have an operational plan that provides the core services Albertans expect, with a return to budget surpluses every year. We have a savings plan that leverages savings for strategic investments in innovation and economic growth and we have a forward-looking capital plan for building, maintaining and improving essential infrastructure as our province continues to grow,” said Horner. “Due to strong leadership, a growing economy and prudent spending decisions, we are now well-positioned to weather our challenges as we continue to implement our Building Alberta Plan. Alberta has the strongest balance sheet in the country…and we are going to keep it this way.”

As Horner opened the provincial wallet to talk about paying for the items, he surprised Albertans by not asking for some extra cash. There will be no tax increases or new taxes initiated in 2014. The Conservatives are banking on financial input from continued population growth, steady resource income, growing trade markets and some savings initiatives. 

“I am cautiously optimistic that our revenue sources will continue to show strength. While we will immediately benefit from a dropping Canadian dollar and higher price for oil, global energy prices remain volatile and we must stay the course with our Building Alberta Plan.” said Horner.

Horner will be borrowing at least $4.3billion to support the capital plan and dip into the contingency fund to balance the budget. He will also reallocate interest money from the Heritage Trust fund. 

“Alberta’s borrowing plan is strategic and responsible. Government only borrows for infrastructure and there is a legislated cap on borrowing costs in place, along with a clear plan to pay it back. Interest rates are close to a 50-year low. We are building our net assets by using all the financial tools in the tool box,” said Horner. “Albertans told us they wanted to put our growing savings account to work in support of a stronger economy for decades to come. This budget takes a portion of the interest earned by our savings and focuses them on supporting research and innovation in key areas such as agriculture, social challenges and skilled trades training. Due to strong leadership, a growing economy and prudent spending decisions, we are now well-positioned to weather our challenges as we continue to implement our Building Alberta Plan. Alberta has the strongest balance sheet in the country—and we are going to keep it this way.”