UPDATED HERE November 29th, this post needed to be rerun...The reason, not only is Alberta running another deficit, its 5th deficit in 6 years, this one is a whopper, Alberta will be running a staggering $2.5 billion dollar deficit and..Allison Redford wants to change accounting practices, she wants all new infrastructure investments to not count against the Alberta debt..
WTF, why is Alberta running $multi-billion dollar deficits when oil has hovered near $90 dollars per barrel for years...
EDMONTON - Alberta is on track to run a deficit as high as $3 billion in the 2012-13 fiscal year, provincial finance officials said Wednesday, drawing sharp criticism from the opposition.
Speaking to the second-quarter results, Finance Minister Doug Horner said the budget problems revealed in the first-quarter financial update continued during July, August and September. Overall, he said, the province has a bright economic future. But of particular concern is lower than expected energy revenues.
Bitumen royalties fell $369 million short of six-month projections, while crude oil was $139 million short. Natural gas was $349 million short and Crown lease income was about half of the $1.1 billion expected.
The province has revised its price for a barrel of West Texas Intermediate crude downward from $99.25 in the budget to $92.50 in the second quarter update.
Those shortfalls matter because about a quarter of the province’s $40-billion budget is funded with resource revenue.
Alberta Finance also reported that expenses for the first six months were $293 million higher than expected. The reason, they said, was dealing with disasters such as forest fires and severe hailstorms.
The second quarter update continued the trend of quarterly reports that paint a less rosy picture than anticipated in the government’s February budget. Instead of an $886-million deficit projected for the year, finance officials said the deficit looked like it would range between $2.3 billion and $3 billion.
Anderson calls out Redford and Horner for dishonest spin on need for government debtEDMONTON, AB (November 14, 2012): The PC rhetoric justifying their plans to borrow billions for new infrastructure spending shows a frightening lack of financial literacy and awareness of global economic uncertainty, Wildrose Finance Critic Rob Anderson said today.
Since 2004, the province had paid off its debt and paid for all infrastructure projects through annual revenue. Not including the current budget year, Alberta has spent $44.9 billion dollars on infrastructure through debt-free spending since that time; roughly double the amount spent per-person compared to almost every other province.
Despite this, Premier Redford justified putting Alberta back into debt by falsely stating that “if everything we do right now is fully funded with cash in the bank, then we are never going to build anything more in this province.” In addition, Finance Minister Doug Horner, inappropriately compared government going into debt with young couples taking out a mortgage on a home.
“It is dishonest and misleading to say we cannot build infrastructure if we don’t go into debt and then to compare government going into debt with families investing in their first or second home,” Anderson said. “Roads, bridges and hospitals, though important, are depreciating assets that are never sold, cost billions to staff and maintain, and debt-financing such assets puts taxpayers solely at risk. On the other hand, a home mortgage is generally an appreciating asset that is regularly sold, and if things go badly, taxpayers are not on the hook.”
With the province facing a $3 billion dollar deficit after an “Alison in Wonderland” pre-election budget that increased operational spending by a whopping $2.4 billion, Anderson said that both Redford and Horner are now making up excuses as they mortgage Alberta’s future and trash our province’s no-debt reputation.
“The PCs did not campaign on running this government back into debt, and it’s certainly not what Albertans are asking for,” Anderson said. “This government would have certainly lost the election had they campaigned on going back into debt, and they should either scrap their debt financing plans or at the very least, put the question to a provincial referendum.”
(Still in update mode November 29th)- if Alberta is going broke with a massive increase in tar sand activity are we to believe an oil pipeline will bring harmonious wealth to BC?..The answer is no, the story belows explains how spikes in oil prices led to the world`s worst recessions, if oil spikes to $150 a barrel again the world will again enter a deep recession, in fact we are still in the last recession, ...Look at the criminals running(ruining) our BC Government, look what they have blamed for deficits, falling resource revenue, one by oine our Government is ceding tax breaks and subsidies to resource extractors and day by day BC is falling deeper in debt, Dutch Disease, you bet...Check out these numbers by David Shreck..
Deep decade decline in natural resource revenue
Growth in some other sources of revenue is slow or negative. In 2000-2001 natural resource revenue totaled $3.96 billion, consisting mainly of forest revenue at $1.34 billion and natural gas revenue at $1.25 billion. In 2012-13, total natural resource revenue is estimated to be only $2.56 billion, with $546 million from forestry and $157 million from natural gas. This year total natural resource revenue is expected to be only 65 per cent of what it was in 2000-2001.
(Still in update mode November 29th), our resource revenue is but half of what it was 12 years ago, all that raping of the lands, all that drilling, fracking, water poisoning, damning and mining and BC`s royalties are going backwards, .....Today`s economists are nothing but shills for corporate welfare and our politicians are effing liars and thieves!
The Enbridge Prosperity Myth....Written by Grant G
The Enbridge prosperity myth, I wasn`t sure what to title this story but after careful consideration it seemed appropriate, I read an interesting story involving Pat Carney, the premise of her story on Enbridge is this....
First Nations are opposed to Enbridge, there are 56 separate First Nation groups, the majority of those are interior Bands, and in fact many of those interior groups are willing(for a price) to allow the Enbridge pipeline through their territory, however, the First Nations(and average BCers) at most risk, those being the coastal First Nations and those BCers who rely on a vibrant healthy West Coast eco-system are being offered virtually nothing!
Think about that for just a moment, the Haisla Nation/Haida, North Island bands and West Coast fishers who would be at risk of losing everything, of losing a one of a kind eco-paradise are being almost completely left out of the process!...Meaning this, an interior band doesn`t have to worry too much, they merely have to maintain an inland pipeline through their territory, not if but when a Oil Tanker disaster strikes the BC Northcoast the ones affected, the coasters are out of the loop, interior bands, interior First Nations will still get their money, the oil disaster risk is very minor to interior First Nations compared to the risk West Coasters will bear, by a country mile!
Here is a little cut n paste from the Pat Carney article....
OTTAWA — The $5.5-billion Northern Gateway pipeline linking Alberta's vast oilsands wealth to Asian markets via a northern B.C. port won't likely meet its 2017 target to begin shipments — if it's built at all, retired B.C. Conservative Senator Pat Carney said Thursday