TALE OF TWO BUDGETS
Who knew two budgets could be so different? At their simplest, financial blueprints involve a column for itemizing spending and another one that lists sources of expected revenue.
The budgets recently released by Alberta and Saskatchewan couldn’t be more unalike, with the Rachel Notley document calling for a $10.3-billion deficit that will help dig taxpayers $71 billion in the hole by 2020.
Both energy-rich provinces are struggling to cope with plummeting resource revenues, but Saskatchewan Premier Brad Wall is charting an alternative course to the one chosen by Alberta’s NDP. The Wall administration is providing less funding for some services, reducing the amount available for public-sector wages and scuttling a publicly owned bus company, along with its 224 jobs.
Not surprisingly, the two leaders have engaged in a bit of squabbling over the financial decisions that have been made. Notley says Wall’s budget is an example of what Albertans might expect under a Wildrose or Conservative government, accusing her opponents of living in a “fantasyland” for believing they can balance the books without impacting front-line services or hiking taxes.
Wall has taken to Twitter in response, commenting: “This #skbudget involved many tough decisions but last week, Premier Notley decided to give us some budgeting advice. Thanks, but no thanks.” He also criticized governments “choosing to run perpetual deficits,” noting Saskatchewan aims to balance its books in three years — half the time of the NDP’s most optimistic expectations. There’s no doubt Wall’s budget contains the tougher medicine of the two.
Saskatchewan residents have seen their sales tax increase from five to six per cent and expanded to cover more products and services, while Alberta politicians still regularly reject the imposition of such a consumption tax. That’s as it should be, given the bloated cost of delivering government services in this province.
Still, there’s no reason for Notley to resist any attempt at closely studying the spending column in her budget. The government’s continued talk of preserving front-line services is getting a little tired, especially as the size of the public sector continues to grow and some of their unions are gearing up for contract talks. Notley may believe the NDP is doing the right thing by stimulating the economy in such dramatic fashion, but surely even the most ardent spender would acknowledge the wisdom of a little moderation.
If she doesn’t want to pattern herself after Brad Wall, that doesn’t mean Alberta’s finances have to be void of common sense. A tweaking of the spending column might make a world of difference to the premier’s credibility.