By: Lucas I.
The Albertan NDP government announced on October 26, 2015, that it will run a 6.1 billion dollar deficit in attempts to try to stabilize the provincial government by 2019-2020. This will be the greatest deficit since premier Ralph Klein. Large sums of the money will go towards educations grants and young workers programs. It is estimated that by the year 2019, 27,000 jobs will have been created. This deficit will be the first time in two decades that Albertan provincial movement is not running within it’s means.
The Albertan government will now begin, by increasing the taxation on Tobacco by essentially adding five dollars to every box, as well alcohol products increasing their price effective midnight on October 26. Analysts expect that this will greatly dimmish and help aid into the new job grant program. Large sums of the money will go towards educations grants and young workers programs. It is estimated that by the year 2019, 27,000 jobs will have been created. Along with thee new changes, the NDP government promises to ensure no tax cuts on both health and education.
Alongside the proposed debt, the NDP government is already projected to have 5.7 billion dollars debt because of corporate and energy royalties. This would eventually bring the debt to an estimate of 18 billion dollars by the year 2019. In attempts to ensure more fiscal stability through the process, the government has changed the decade long initiative of 10% corporate flat tax first imposed by Ralph Klein, to a larger 12% tax setting Alberta from the lowest tax in the country to the middle of the pack.
The NDP also announced that they will be spending 34 billion dollars on infrastructure by the year 2019. The money is to particularly target construction workers and engineers who have been slowed down because of the oil prices. So analysts also suggest that Toll booths on the newly built Calgary ring road should help compensate for the sudden change in taxation.
To many a change in fiscal policy is usually a good initiative, but many are not able to put their money on it just yet.