Newsrelease

September 30, 1998
Edmonton, Alberta

"The good times continued for Albertans in 1997-98. Alberta led the country with solid fiscal management, and Albertans reaped the benefits through tax cuts and further reinvestment in health and education."

Treasury earns top marks for staying the course in 1997-98

During the 1997-98 fiscal year, Alberta earned the highest overall credit rating of any province, based on the reviews of four independent rating services. A credit rating is a critical performance benchmark. It serves as a barometer for the overall health of the province.

"In Budget ’97, we charted the course to a higher credit rating and a stronger economy, and I’m proud to report that we’ve arrived on time and in great shape at our intended destination," Provincial Treasurer Stockwell Day noted when releasing Alberta Treasury’s 1997-98 Annual Report.

"Albertans will be pleased to know that our economy made the honour role. Our AA+ credit rating is proof that staying the fiscal course – paying down the debt, balancing budgets, and targeting spending to Albertans’ priorities – was and continues to be the most appropriate method of governing in our economic climate," Day said.

Alberta Treasury Annual Report highlights include:

• Because Alberta can boast the highest credit rating of any province, the Alberta government pays less to borrow money than any other province.
• Debt payment continues ahead of schedule, as a $2.6 billion payment was made on the province’s net debt at the end of 1997-98. Alberta’s net debt is now just under $1.1 billion – that’s down from a high of $8.3 billion.
• Personal income taxes were cut. For the first time in five years, personal income tax rates were reduced, going from 45.5 per cent of the federal rate to 44 per cent. And, following through on our commitment to children and families, the Family Employment Tax Credit was doubled in the reporting year. Combined with the reduction in personal income tax rates, taxes for Alberta families earning up to $30,000 are cut in half.
• Other taxes were also reduced. The provincial property tax on machinery and equipment was eliminated and reductions were made in provincial school property tax rate and the railway fuel tax.
• Treasury continued to issue timely, user-friendly reports to Albertans regarding the province’s finances and performance targets.

"We can reflect on the accomplishments of the past year and feel satisfied that these have contributed to the strong and diverse economic base we now enjoy in the province," said Day. "This base is crucial for survival in the coming year and beyond as we face many challenges resulting from the staggering global influences we are only just beginning to experience."

To request a copy of the 1997-98 Alberta Treasury Annual Report, Albertans can call 427-4414.

For further information, please contact:

Shannon Taylor
A/Director of Communications
Alberta Treasury
(780) 427-5364

Go to: Alberta Treasury Annual Report