Alberta's April 7 budget to contain small spending increase
Link: http://ca.news.yahoo.com/s/capress/090226/national/alta_fiscal_updateSummary
This article talks about how Alberta's next budget is likely to contain both small spending increases and an overall deficit.Finance Minister Iris Evans said that Alberta will be having a deficit next year and spending will continue to rise, although not as quickly as it did when high energy revenues filled the government treasure chest. Moreover, she also warned Albertans last week that the province will rack up a $1-billion deficit this year as well - down from budget projections of a $1.6-billion surplus. In fact, this year's red ink will total $1.4 billion, according to the third-quarter update. It's the first deficit in 15 years and may grow when the province's health authorities deliver their books. Many expect the health authorities to be hundreds of millions of dollars in debt. However, the Conservative government is not replacing the fund's losses, so it will still have enough cash to follow through on a $2-billion promise to fight climate change. Lastly, Evans acknowledged Alberta's energy-based economy is tumbling into a recession after leading the country for years. She projected the province will lose 15,000 jobs in the months ahead.
Connections
Chapter 4 talks about the growth of government spending and it also mentioned that the major alternative to taxation as a source of government revenue is borrowing. The article mentioned that there will be a deifct next year, and many assume Alberta will also be in debt which will led to thousands of unemployments. These are many factors involved in increased government spending, also including the transition from a rural to urban country and the government becoming more involved in the education system and to the public. These are true for Alberta, considering there is the $22.2-billion construction program for roads and schools. Two-fifths of the entire spending in Canada is controlled by the government. So the Canadian Government has to come up with a way to slove this issue which is to either borrow money from other countries or get money through taxations.
Reflection
I believe that even though Alberta is in debt and had increased its spending. It isn't the only provinces that is in this situation. Other provinces and territories are in the same position too, such as BC. Since Vancouver is hosting the 2010 Winter Olympics, there have been millions of dollars going into that project and yet the whole country is going into recession. It will only make matter worse. So I think all the provinces should work together as a whole and figure out a solution to slove this problem and clear the debts together as a country.
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