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March 2, 2004 Fiscal Responsibility Amendment Act introduced Edmonton... Changes to the province’s fiscal framework will result in an additional $500 million for Albertans' priorities, including health care and education. The Fiscal Responsibility Amendment Act, introduced today by Finance Minister Patricia Nelson, raises the amount of non-renewable resource revenue used for the budget from $3.5 billion to $4 billion. Under the rules put in place with Budget 2003, a set amount of non-renewable resource revenue is directed to programs, and any extra is deposited in the Sustainability Fund. “The Sustainability Fund reached its $2.5 billion target this year, thanks to strong resource revenues and prudent fiscal management,” said Nelson. “Good fiscal management includes carefully using taxpayers’ money where it’s needed most. We are now in a position that we can adjust the formula governing the framework without changing the principles that make it work.” “We said at the start that we would evaluate the amount of non-renewable resource revenue we use for the budget and decide if it was the right level,” said Nelson. “Forecasts from the energy sector show continued strength and royalty returns higher than previously expected. Together with the Sustainability Fund, strong revenue forecasts give us the flexibility to put additional dollars in areas that Albertans are telling us are their key priorities.” Education and health care will see the bulk of the $500 million. “Albertans have told us their priorities,” said Nelson. “Heath and education top the list.” Funding details will be laid out in the coming provincial budget. Money in the fund can be used to pay for emergency and disaster responses, natural gas rebates, or to protect programs if revenues fall below budget estimates. Money in the Sustainability Fund over and above its $2.5 billion target can only be applied to Alberta’s debt, the Capital Account, or to increase assets, including growing the Sustainability Fund itself. - 30 -
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