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Big omissions in #ableg Fiscal Update: no recognition of our main fiscal challenge (reliance on resource revenues) and no indication of how we'll move forward.
As @RonKneebone so wisely put it: we have a substance abuse problem. Step 1 to overcoming it: admit we have a problem.
As @RonKneebone so wisely put it: we have a substance abuse problem. Step 1 to overcoming it: admit we have a problem.
Here's a link to his paper: https://journalhosting.ucalgary.ca/index.php/sppp/article/view/42422 (Read it!!)
Also, note this isn't a critique of current govt only. Failing to recognize this as a problem is an all-party challenge; former govt did it repeatedly as well.
Also, note this isn't a critique of current govt only. Failing to recognize this as a problem is an all-party challenge; former govt did it repeatedly as well.
I'll add that the province is going to need to consider revenue measures. No, not necessarily sales taxes. Gas taxes, a health levy (payroll tax), taking back CTax revenue, changing PIT rate, etc. Lots of options we should consider.
Why revenue measures? The govt's spending commitment was to bring spending here in line with other large provinces. A defensible position. But by 2022/23 we'll have achieved that under current policy. Yet we'll still have a large deficit that year now.
The options are (1) balance much later (perhaps ~2026 under a continued spending freeze); or (2) increase revenues modestly. I suspect the govt will pick the latter; but I don't understand why it's taking so long to start the conversation about this.
