Spending up in Alberta budget
CBC News | Posted: April 25, 2001 7:29 AM | Last Updated: April 25, 2001
Finance Minister Pat Nelson is trying to cool expectations about Alberta's booming economy, despite increased spending in the new provincial budget.
"I think what you have is you have an expectation that this is forever," says Nelson. "It's not forever. We had a banner year last year, but we cannot expect to be there forever, so we have to deal with it responsibly and with reality."
Her first budget, presented Tuesday afternoon, projects spending of $21.6 billion, an increase of 24% over the 2000 budget, on revenues of $22.7 billion. That should result in a budget surplus of $817 million, a figure Nelson suggests is a conservative estimate.
"We know we must act responsibly and we must take the responsible course and count on reasonable revenues," she says.
"We've seen in the past where governments did not do that, so we have chosen the conservative approach."
Here are some of the budget highlights:
- $2.7 billion on one-time spending for infrastructure to build and upgrade schools, hospitals and roads
- $125 million for possible energy rebates
- $250 million for farm aid
- 3.5% increase in school board budgets
- 6% wage increase for the province's teachers over two years
- An increase of $105 million for children's services over three years
- An increase of $54 million for AISH over three years. No changes in income tax
The government also says it intends to hire 1,200 new employees.
"This is a fiscal blueprint that represents what we have been hearing from Albertans," says Nelson.
The budget forecasts Alberta's economy will remain the strongest in Canada with 4.8% growth in 2001. And it predicts 40,000 new jobs will be created in the province during the current fiscal year.
She says Alberta could become debt free within two or three years if energy prices remain at the high levels forecast by some energy analysts.