Ceci checks spending but mum on tax hikes
Finance Minister Joe Ceci shed some light Thursday on the NDP government’s spending plans ahead of next month’s provincial budget, but neither he nor Premier Rachel Notley would reveal whether new taxes are coming — or when the books will again be balanced.
In a bear pit session with local politicians at the Alberta Urban Municipalities Association, Ceci said the ministries of Health, Education, Innovation and Advanced Education and Human Services had been given initial spending targets of no more than two per cent growth, as the province faces a major revenue hole because of low oil prices.
He said the Health Department couldn’t reach the goal and will instead have a target of about five per cent this year.
All other ministries were given a target of zero spending growth.
“They need to find the resources within their existing budgets. So it’s a really tough year for all ministries, particularly the ones that aren’t those big four,” said the Calgary- Fort MLA.
“I’m happy to say that, not only are we sticking within our targets through the ministers, but we are also looking at programs and services that don’t need to be there anymore and we’re reallocating funds to address important things we think need to be funded. Basically, we’re holding the line on spending.”
Ceci will release his first budget after the legislature resumes sitting on Oct. 26.
After winning the May 5 provincial election, the NDP government sat briefly in June to pass interim supply measures that reversed health and spending cuts by the previous Tory administration. The government also implemented its promise to increases corporate taxes and incomes taxes on high earners.
In the first- quarter financial report released in August, spending was estimated at $ 50.2 billion — $ 1.8 billion higher than in the budget introduced, but never passed, under the Progressive Conservatives this spring.
The deficit, pegged at $ 5 billion this March, is now expected to be somewhere between $ 5.9 billion and $ 6.5 billion.
Pressed by reporters whether the NDP will still balance the budget by 2018 — as was promised during the campaign — Ceci was noncommittal.
“Nothing is for sure. We have a pathway to balance we will be releasing during the budget,” he said.
Asked whether he would rule out bringing in new tax increases in the budget, Ceci said the government wouldn’t implement a sales tax but would make no other guarantees.
Notley struck a cautious note when asked about taxes in the budget, noting the NDP government’s earlier tax increases, but she also made no commitment.
“I’m not saying one way or the other ultimately,” she said. “But we’re going to take a balanced approach and we’re also very conscious of the sensitivity of the economy right now.”
Interim PC Leader Ric McIver said it’s past time for the government to release its budget.
He said he would wait for the budget before commenting on Ceci’s targets, but suggested the rookie government’s spending habits raised concerns.
“What concerns me now is there seems to be little to no concern about controlling costs,” said McIver.