Alberta in economic doldrum

Quoting the first quarter financial report, released in August this year Premier Notley said, given to the current fiscal deficit of $10.9 billion, her government in no way could afford to consider any new projects or programs.

In a present stagnated economy her first priority is to restrict the government from spending within two percent for which her provincial government had been trying hard, and maximum emphasis had been given to healthcare and education which on the contrary affected other areas of spending adversely.

In the current economic situation where there had been a staggering $10.9 billion deficit budget, the question of new programs just did not make any sense, she commented.

Calgary's Councillor Jim Stevenson, who was also a member of AUMA's Board of Directors, said that Premier's comments came as no surprise.

In 2016-17 provincial budget the government predicted the operational expenditures from 44.1 billion to 45.1 billion next year. Total expenditure including debt servicing cost had been anticipated to go up from $51'1 billion to $53.6 billion.

While Alberta's economy and government's bottom line had been battered by the downward movement of oil prices since 2014, Premier Notley urged municipal leaders to rally behind her to get approval from the federal government for a new oil sand pipeline to coastal waters.

She had already made it amply clear that she would not support Trudeau Government's new federal carbon pricing policy, unless her pipeline scheme had been approved.

(Reporting by Chandan Som)