News Release

June 29, 2000
Edmonton, Alberta

"Alberta has entered the new millennium as a prosperous province. Albertans have worked hard for that success, and this government is going to work hard to help ensure it continues."

Provincial Treasurer Stephen West

Details of the province’s fiscal and performance results were released today and they show Alberta struck the right balance between debt payment, priority spending and tax relief last year.

The 1999-2000 Government Annual Report shows Alberta made a record $2.7 billion payment towards reducing our debt and increasing the value of our financial assets. At the same time, the province was able to increase spending by nearly $1.6 billion -- or 10 per cent -- over 1998-99, allowing new funding on Albertans’ priorities. That was mainly due to higher than expected energy prices that boosted revenues by $3.3 billion.

"We’ve had some great fortune this year and we’ve managed it well," Provincial Treasurer Steve West said. "We can’t count on energy revenues to be high every year, but when we have windfall revenues, we must use them wisely paying down our debt, spending on Albertan’s priorities, and accelerating tax cuts."

Debt payments made since 1994-95 have permanently saved Albertans nearly $800 million per year in debt-servicing costs. That’s money now being used to fund areas like health and education.

All Albertans benefited from the extra spending that went to our health system, schools, infrastructure and farmers.

• Health spending increased by 15.1 per cent to $5.285 billion.
• Education spending was up by 9.2 per cent to $4.558 billion.
• Infrastructure (transportation) spending was up by 72.2 per cent to $1.116 billion.
• Agriculture and economic development spending was increased by 49.9 per cent or $358 million primarily to fund a farm aid package.

1999-2000 also saw Alberta’s new single rate tax system accelerated. The plan was introduced in Budget ’99 to be phased in over three years. But in September 1999, the plan was accelerated. The surtax was eliminated in January 2000 and the plan will be fully implemented on January 1, 2001 with the rate set at 10.5 per cent on taxable income and the personal and spousal exemptions raised to $12,900. This will free 190,000 lower income Albertans from paying provincial income taxes and collectively Albertans will save $1.3 billion a year.

The Government Annual Report also shows that the province is making great strides on its performance measures.

• There were 37,900 new jobs created in Alberta in 1999. And over the period of 1997 to 1999, 144,900 new jobs were created.
• Alberta’s credit rating was the highest in Canada, achieving our target.
• Albertans enjoy the lowest overall tax burden in Canada.
• In 1998, life expectancy for females was second highest in the world at 82 years and for males it was third highest at 76.3 years.
• There were no days of poor air quality reported.
• Alberta was the province with the highest percentage of children living in families above the low-income threshold.

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