Calgary – So much for the era of fiscal responsibility. The PC Government's budget forces them to gamble on oil and gas prices and break their own law, while muddying the capital and sustainability funds to hide mounting deficits. 

"This demonstrates that, just like the Alberta Advantage slogan, the era of fiscal accountability is now long gone," says Alberta Wildrose Alliance Party leader Paul Hinman, pointing out that the Stelmach PCs' budget depends on higher oil and gas prices to save itself from a projected $14 billion shortfall.  In the past, Hinman says, they used the phrase "unanticipated surpluses" as an excuse to spend more, but "Now they just pull numbers out of thin air!" He notes that they have had months to come up with spending cuts and yet have still been handing out big fat bonuses. "And now they notice the cupboard is bare? It's like a return to living in the Getty days, instead of Canada's richest and most responsible province."

It's a hat trick of unreliability. First, the Stelmach PC's project deficits for at least the next 3 years – breaking their own law mandating balanced budgets. Second, they use projections of gas prices 40% - 60% above today's, which may or may not happen (and even if they do, the government will still run a deficit of over $14 billion between last year and the next three years).  And third, they shuffle money from one pocket to another to mask the debt financing as their deficits cut into capital savings.    
 
Not only that, but "The budget depends on spending being kept in check, something this government has no track record of" Hinman says.  In fact, this budget increases spending by over $1 billion "which is a strange way to control spending" Hinman points out.  Not only that, but the new centralized health care system has led to longer lines and higher costs while cost cutting in this budget saves only $215 million,  a fraction of the spending increases and nothing in comparison to the billions in deficits.

The mixing of the Sustainability and Capital Funds masks the fact the current Sustainability Fund will be drained.  Capital Funds, which were set aside to build infrastructure, will now be used to help support increases in general spending. "It's economic sleight of hand, just a bad magic trick." Hinman says.  

"Stelmach's desperation is apparent.  The Tories are muddying the waters to hide their actions just like when they fired the Chief Electoral Officer," Hinman says.  At the same time, they remain committed to expensive carbon capture fantasies while hospital beds sit vacant due to lack of funding.  "When are they going to focus on what matters to Albertans: jobs, health care, justice and education, instead of fancy slogans, environmental fantasies, and infringing on Albertans' property rights?"  

The Wildrose Alliance stands for true conservative fiscal responsibility. This budget should have included real estimates of the state of the economy and significant plans to decrease bureaucracy, red tape and government waste. "Unfortunately," Hinman says, "There were few, and this budget is not only a fraud on Albertans but a missed opportunity for the PC's to show leadership and regain some lost credibility."

FOR MORE INFORMATION:

Paul Hinman
Wildrose Alliance leader
Phone: 403 393-2003

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