"It’s also good that they’ve taken steps to eliminate bracket creep by indexing at 1.8 per cent for this year," said Day. "In Alberta, we’ve gone further by raising personal and spousal exemptions by 60 and 90 per cent respectively – along with eliminating bracket creep."

Day also said "good" to Ottawa for reducing the middle income tax bracket from 26 to 24 per cent. Again, this falls short of Alberta’s new fairer and simpler, single rate of 11 per cent tax on income that comes into place on January 1, 2001. As well, Alberta eliminated its eight per cent surtax in a day, on January 1, 2000, while it is taking Ottawa five years to eliminate their surtax.

The bottom line when it comes to taxes is that Alberta is saving Albertans an average of 15 per cent, while Ottawa is passing along savings of only six per cent.

Where Federal Finance Minister Paul Martin has really failed is on debt reduction, said Day. "This year, Alberta is making a $1.6 billion payment on a debt of under $14 billion," he said. "The Feds, by comparison, are paying a pittance, $3 billion on a debt of nearly $600 billion. "At this rate, Ottawa will be paying off that debt for 200 years. That’s ugly."

Paying down debt frees money for taxpayer’s priorities, like tax cuts and spending in health care and education. Alberta has freed $765 million in interest savings since 1994-95 which has gone to health and education. Our interest costs in 2000-01 will be less than a $1 billion for the first time in 12 years. Ottawa, on the other hand, will pay its lender’s about $42 billion this year.

Day said it was "too bad" that the Canada Health and Social Transfer payment from Ottawa announced in the budget fell short of restoring the transfer to its original level, a move called for by Premiers at the latest First Ministers’ Conference.

However, Day said it was "good" that the Federal government did not introduce costly, temporary boutique programs in areas of provincial jurisdiction like health. "Even though we had hoped for a larger restoration of the 1994 cuts to health, at least they’re getting the message about giving back the cash, not promoting inefficient programs."