Alberta budget expected to offer jobs strategy, infrastructure plan and carbon tax

GET THE LATEST POST-BUDGET NEWS, REACTION AND ANALYSIS:

• Alberta budget goes heavily into the red to fight economic downturn
• Alberta Budget 2016: Here's what it means for your pocketbook
• Here's what the fuss over Alberta's new carbon tax and rebate is all about

Here is our story published in advance of the budget being unveiled: 

Albertans should get details of a new $3-billion carbon tax, job creation plan and five-year infrastructure building program when the NDP government unveils its 2016 budget today.

Although the province faces a $10.4-billion deficit, the largest in Alberta history, Finance Minister Joe Ceci said the government will continue to diversify the economy and provide health, education and social services."It's not an austerity budget," Ceci said Wednesday. "We are continuing to say programs and services and front-line programs are necessary, probably even more in a downturn."

The budget comes in the wake of thousands of job losses caused when oil dropped to $30 a barrel, before rebounding slightly. 

Ceci said the government will unveil a "suite" of programs to create jobs and retrain people who lost their jobs.

The government will reveal more details about a five-year, $34.5-billion infrastructure plan that was announced in last October's budget. Infrastructure Minister Brian Mason said the long-awaited project sunshine list will "finally see dawn" on Thursday.

Premier Rachel Notley said last week that royalties from oil and gas projects will drop by 90 per cent in 2016. Despite that, the government has no plans to introduce new taxes and has ruled out a provincial sales tax.  

Ceci raised eyebrows in the October budget when he revealed the government planned to borrow for operating expenses. The budget will reveal how the government plans to get back to balanced budgets. 

"A $10.4-billion deficit is serious but it is manageable, and we will show when we release our fiscal plan tomorrow that we are reducing the deficit year over year over year," Ceci said.

The government may also reveal the first part of a review into Alberta's 300 agencies, boards and commissions, which critics say are filled with allies of the former Progressive Conservative government.

Ceci has indicated he wants salaries of people who sit on those boards to be in line with pay for similar positions in the public service.

Opposition no fans of carbon tax 

Wildrose Leader Brian Jean said he wants to see some savings in the budget.

"I think we're going to see more of the same. More wild spending and economic experiments by the NDP," he said.

Jean wants the government to defer implementation of the carbon tax until it can study the potential effects on the economy.

"I would cancel it immediately if we were to receive the privilege of being in power in Alberta," he said. "This carbon tax is not a true carbon tax. It is not changing behaviour. It's just a sales tax in a sheep's clothing."

Interim Progressive Conservative Leader Ric McIver said he hopes to hear more about how the government plans to spend infrastructure money and how it plans to pay down debt.

He also wants the government to reverse some controversial policies it introduced since forming government nearly a year ago.

"The best thing they could do is get rid of the carbon tax, roll back the corporate tax increases, back off on the $15 minimum wage," he said. "Basically, undo all the damage they've done since they've taken office."

Alberta Liberal Leader David Swann wants the government to introduce measures to stimulate the creation of new businesses.

Swann has no issue with going into debt to build infrastructure. But he wants to see a plan for paying the money back.

"Whether it's bonds, whether it's new taxes, we need to start talking about those issues and not transfer a massive debt onto the next generation."

Ceci is scheduled to start his budget speech at approximately 3:15 p.m. MT. CBC will live stream the speech and provide complete budget details and reaction.