Highlights from the 2019 budget
$8.7-billion deficit on revenues of $50 billion. Debt projected to rise from current $63 billion to $72 billion by the spring, on track to reach $93 billion by 2023.
Overall four-year revenue forecast $21.5 billion lower than Notley government’s February update. Total revenues expected to be flat — at about $50 billion — for next two years.
Public sector workforce to be reduced by almost eight per cent over four years, mainly through attrition.
Program spending to drop 2.8 per cent over four years to $47 billion by 2023. Health funding held at $20.6 billion; education at $8.2 billion.
Forecast price for West Texas Intermediate crude rises from US$57 in 2019-20 to $63 in 202223. Royalties expected to grow from $3.2 billion this year, to $4.7 billion in 2019-20 and $6.13 billion in 2022-23.
Oilpatch investment expected to grow by 4.5 per cent in 2020, and by an average 7.7 per cent over following three years.
A one-time payment of $1.5 billion to end the crude-by-rail shipment plan announced earlier this year by the former NDP government. Capital funding to municipalities through the Municipal Sustainability Initiative (MSI) will be cut by nine per cent over the next two years: $94 million in 2020-21 and another $142 million in 2021-22. Tobacco tax hike of $5 per carton of 200 cigarettes effective today. Fees for vehicle registration, land titles and museum entry are also rising. The province also intends to introduce a tax on vaping products next year.
Operators of short-term rentals such as Airbnb will no longer be exempt from four-per-cent tourism levy after spring 2020.
Cannabis continues to be a money-loser for the province, with net incomes expected to remain negative for the next four years. Net income on retail cannabis was negative $34 million during the past year and is expected to still be negative $25 million by 202223. Gaming returns will see only modest growth, from $1.41 billion in 2019-20 to $1.48 billion in 202223. Liquor revenues are forecast to reach $947 million by 2022-23, from estimated $823 million in 2019-20.
Cancellation of the Notley government’s regulated rate option that capped electricity rates at 6.8 cents per kilowatt-hour.
With files from The Canadian Press Postmedia News