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The Government Plan Fiscal flexibility reaps big rewards in 2000; new spending targeted to pressure areas Edmonton, February 24, 2000 - Budget 2000 marks the beginning of a bold new course for Alberta. The province’s first budget of the 21st Century was tabled in the Legislature at 4 p.m. by Provincial Treasurer Stockwell Day. "This is a good news budget for Albertans," Premier Ralph Klein said. "It is based on a strong economy rooted in sound fundamentals. "There is significant new spending in this budget, new spending that corresponds to Albertans’ priorities and to the tremendous growth Alberta is experiencing," said Klein. "Alberta’s population and economy are growing significantly, with resulting pressures on health services, schools, infrastructure and other areas. Budget 2000 addresses these pressures responsibly and affordably. " The province’s fiscal plan for 2000-03 breaks new ground in the field of health care, positions Alberta’s education system among the best in the world, and implements revolutionary tax reforms. "The people of Alberta have told us to maintain a healthy climate where people can pursue their hopes and dreams," said Provincial Treasurer Stockwell Day. "So here it is, Budget 2000: limited government, lower taxes, increases for health, education and people in need, reduced debt. Easy to say, tough to do. But we did it." |
| Day added that Albertans have also made it clear that they want to keep more of their hard-earned money, something that’s being achieved through the new tax plan and reductions to many fees and charges. Budget 2000 projects Alberta’s expenditures to reach $17.7 billion. This includes substantial increases in spending on health, education, seniors and children. The base budget for Health and Wellness will increase by 9.3 per cent, to $5.6 billion in 2000-01 and by 21 per cent, to $6.26 billion by 2002-03. The base budget for Learning is going to go up by 9.2 per cent to $4.4 billion in 2000-01 and by nearly 19 per cent to $4.8 billion by 2002-03. Revenue in 2000-01 will fall to $19.1 billion from this year’s record level of $19.4 billion. This decline is expected due to anticipated drops in energy prices. On January 1, Alberta’s new personal income tax system will be fully implemented, a move that will save Alberta taxpayers $852 million a year in 2001. As well, 132,000 low-income Albertans will no longer pay any provincial income tax at all. And at the stroke of midnight tonight, Albertans will start saving money thanks to $60-million worth of cuts to provincial user fees. That’s when more than 100 fees will be reduced or eliminated for a wide array of services, from corporate registry fees to land title fees to personal property registration fees. "Albertans are benefiting from our prudent fiscal planning," said Day. "We have the fiscal flexibility to increase spending to key areas, cut taxes and user fees, and continue with our debt payment plans." As part of that prudent planning, an economic cushion of $713 million is built in to Budget 2000 to protect against revenue declines or disasters. If that money isn’t needed, 75 per cent, or $535 million, will be going to the remaining accumulated debt and to increase financial assets. The rest can be used for one-time spending or revenue reductions, as set out in the Fiscal Responsibility Act. Under the Act, Alberta’s accumulated debt will be paid off within 25 years. And the savings due to debt payment are already being felt. In fact, in 2000-01, Alberta’s debt-servicing costs will be under $1 billion for the first time in 12 years. Sustainability is another key to the province’s fiscal plan. Energy revenues in Alberta are volatile, and that means the province has to remain realistic in its spending plans. "We can’t rely on $30 oil," Day said. "We have to remember that, on this day last year, oil closed at $12.61." Go to: Next Budget 2000 News Release or Backgrounder - 30 -
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Copyright © 2001 Government of Alberta. |
