Alberta’s commitment
to fiscal responsibility continues as the cornerstone
of our province’s strength. Budget
2006 was our 13th consecutive balanced
budget. Alberta is the only province in Canada with
total financial assets that exceeds total liabilities,
and a Triple A credit rating.
In March
2005, the government established the $3.5 billion
Debt Retirement Account, equal to the amount of
accumulated debt at that time. The assets in this
account will only be used to repay the remaining
accumulated debt as it matures. During 2005-06,
$1,280 million of accumulated debt was repaid from
the assets locked in the Debt Retirement Account.
Over the last decade, the government has eliminated
$23 billion of accumulated debt.
The money
in the Debt Retirement Account has been invested
in high quality government and corporate fixed income
investments, with terms matching maturing debt issues.
On this
page you will find links to information from the
Treasury Management Division on how it manages the
debt and works to keep interest cost, called debt
servicing costs, low. You will also find information
about Alberta's
credit rating history.
Alberta’s
steady debt reduction plan has saved Alberta about
$1.5 billion in annual debt servicing costs (Fiscal
Plan, Budget 2006). That means millions
of dollars every year that can be reinvested in
priority areas important to Albertans, such as health,
education, infrastructure, savings, and tax cuts.
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