The Hidden Deficit – A Budget 2010 Preview

Alberta once set the standard for sound fiscal management and responsibility both nationally and internationally. Sadly, those days are long gone.

Over the past several years, almost no provincial or state government has raised their spending as much or as fast as this Alberta PC government. They have scrapped our "no-deficit" laws and plunged us back into debt to the tune of almost $3 billion this year alone. Metaphorically speaking, this spits in the face of all the Albertans who sacrificed so much (even their own jobs in some cases) to achieve a debt-free Alberta for ourselves and for our children.

And things are only getting worse.

In the second quarter budget update, the PC government claimed an expected deficit shortfall of roughly $4.3 billion. This number is brutal on its own, but it actually underestimates the true cash deficit the government is running.

For example, the $4.3 billion deficit number does not include an additional $3 billion in infrastructure spending that is offset on the government's books as an asset. This is still cash going out – it's just hidden from public view.

The $4.3 billion deficit number also does not include the $1.1 billion Alberta Health Services deficit which also does not appear on the government's books even though it is the Alberta taxpayer that is ultimately responsible for it.

Taken together, the total 2009 cash deficit run by this government is a staggering $8.4 billion.

So how is the government paying for this? Partly by draining our quickly shrinking sustainability fund, and partly through debt financing.

Unfortunately, things aren't getting any better. It appears, from what has been publicly disclosed thus far, that Budget 2010 will ring in with a true cash deficit of somewhere between $6.5 – $8 billion.

This PC Government has failed Albertans. They have totally mismanaged our province's finances, have plunged us back into debt, have failed to control spending, and have no plan for turning the tide. Perhaps it's time for new management.

Rob Anderson

MLA Airdrie-Chestermere