They don’t trust the Alberta NDP to balance the budget
Credit rating agency DBRS limited says they are going to keep Alberta’s credit rating at AA-high for now. However, they are signalling that the long-term trend under the NDP government could lead to a downgrade.
“The negative trend reflects that Alberta continues to erode its low debt advantage through sustained deficit spending. Moreover, the province has yet to provide a credible plan to restore balance,” said DBRS.
Alberta’s budget deficit stands at $10.3 billion (forecasted), not far from the $10.8 billion deficit last year.
Despite the fact that the Alberta NDP says they will balance the budget by 2024, DBRS just doesn’t believe them, and with good reason. As I wrote earlier, investment is fleeing the Canadian oil industry as the elitist government fools wreck the economy with high taxes and over-regulation.
Who would trust a government that massively overspends while restricting the industry it’s relying upon to cover the cost of their overspending?
This just goes to show why a new government is so desperately needed in Alberta. The oil industry can achieve far more prosperity and opportunity if those in power just let workers in the oil industry and businesses do their jobs, rather than imposing endless regulations on them.
At this point, the government stepping back and doing nothing would be far superior to their constant intervention.
It’s time to get the government out of the way. Until that happens, more debt, deficits, and credit downgrades will follow, not just in Alberta, but across our entire country.
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