Alberta forecasts record debt of $36.6B by 2018

Alberta’s NDP government will forge ahead building schools and hospitals and hiring more teachers and nurses, but the devastating impact of low oil prices has it planning to borrow money just to keep the lights on.

There’s money earmarked in Tuesday’s provincial budget to reduce school fees, start a school-nutrition program and deliver a new child benefit for low-income families.

There’s also cash to provide employers with grants of up to $5,000 for each new job created over the next two years and an extra $1.5 billion to improve access to capital for small- and mediumsized businesses. There are small tax increases for cigarettes and booze.

Much of the spending is being underwritten by record debt, which is pegged to reach $36.6 billion by 2018 — nearly 15 years after former premier Ralph Klein announced the province had fully paid off what it owed.

Longer-term forecasts have debt reaching more than $47 billion by 2020.

And starting next year, the province plans to borrow money to pay not just for capital projects as it has in the past, but for day-to-day programs as well.

“This budget lays out a responsible economic plan that will serve as a shock absorber to our short-term challenges and grow the economy over the long term,” Finance Minister Joe Ceci told reporters.

Asked how he thinks Albertans will feel about going from debt free to almost $50 billion in the hole, Ceci said: “I think Albertans will continue to be proud that we are building a province that will take us far beyond this recession and lift us back to the good times we’ve all enjoyed.”

Wildrose Leader Brian Jean said the budget is a roadmap to crushing deficits and debt with a promise, but no realistic plan, to pay them down.