NEW DEBT PARTY: Notley Government To Borrow $37 BILLION More

Borrowing will add to the explosion of Alberta’s debt under the NDP government.

The Notley Government continues adding to the debt burden on future generations.

Having already driven up Alberta’s debt, the NDP has approved another $37 billion in red ink.

As noted by the Calgary Herald, “The 2017-18 budget projects the government will borrow $32 billion in the 2018-19 and 2019-20 fiscal years for capital and operating costs, refinancing of mature debt and covering shortfalls incurred by the balancing pool.”

Added to the $32 billion is a $5 billion contingency reserve.

Strangely, the government ended restrictions on the ability of the government to borrow money in foreign currencies, according to the Calgary Herald.

It’s an odd move, and something nobody was asking for.

Inability to show fiscal restraint

The Notley NDP government has fed into all the negative stereotypes that existed around the NDP.

They expanded the bureaucracy, ran debt way up, increased spending, and increased taxes (carbon tax).

Predictably, this worsened the impact of the oil downturn, and hurt countless workers and families across Alberta.

As a result, the NDP is incredibly unpopular, and faces a resurgent Conservative movement led by Jason Kenney – promising to overturn the job-killing approach of the NDP.

Yet, even with a United Conservative Party victory, Albertans will be paying for the NDP’s lack of fiscal responsibility for a very long time.

Spencer Fernando

11 comments Add yours
  1. I’m not sure if any government could avoided borrowing completely in this fiscal year given low oil prices, however, when revenues have reduced from $42.5 billion in 2015/16 (prior to the NDP government) to $41.4 billion in 2016/17 (first year of NDP government) (net decrease of $1.1 billion in revenue), and when expenses increased from $48.9 billion in 2015/16 to $51.1 billion in 2016/17 (net increase of $2.2 billion in expenses), one has to question the competency of the NDP government’s finance minister and Notley’s leadership based on these metrics alone.

    1. This has nothing to do with anything you just said. This government as well as the liberals have done all this by design. We have no trade, actually we have no deals at all with the world. We are not liked by anyone because of our unstable government, no one will invest in this country, the whole world is on the upswing in a huge way. And we have nothing. And now foreign investment. Who is that group. I’m sure it’s the group who wants to take down this country. They have sold out our people and our country to the most corrupt people in the world. They should be in jail.

      1. You have some interesting comments Mike. I am no expert in the area of foreign trade, but as a general observer it does seem that Canada as a nation does not have strong control over its own destiny and the decision makers do not appear to have the citizens at the top of their mind when trade, investment, and other areas of interest are considered.

        There is no good reason why we cannot add value to our natural resource products, for example, before being transported abroad especially when you consider the level of unemployment/ underemployment in our country. This seems obvious to me but I don’t see a lot of primary and secondary manufacturing of our natural resources in Canada, much of which has been lost to asian countries.

        “Despite Canada’s formidable reserves of iron ore, the steel industry in recent decades has shrunk significantly as industrial markets have become increasingly globalized. Today, every remaining steel mill in the country is owned by foreign investors and Canada is a net importer of the manufactured product.”
        http://www.thecanadianencyclopedia.ca/en/article/iron-and-steel-industry/

        The trade deals that we have signed from what I can tell tend to sell ourselves short as you point out and need to stop. The big question in my mind, are their politically motivated individuals out there with the intelligence, creativity, and the courage to course correct our country?

  2. “Strangely, the government ended restrictions on the ability of the government to borrow money in foreign currencies, ”

    This is extremely suspicious. Right up there with Trudeau selling Canada to the Chinese Communist dictatorship.

    What foreign currencies- Chinese yen, Saudi rials? If it is US dollars from the Government of the United States then I am all for it. Use the Province as security on the loans and then default. America could then seize Alberta. Even that would be better than the Libs or NDP.

  3. The total increase in expenses over a two-year period by the NDP government from fiscal period 2015/16 to 2017/2018 is projected to be $5.9 billion (12.1% increase). A total of 21% of this increase ($1.3 billion) comes from the NDP’s Climate Leadership Plan (CLP). Will the CLP money increase the standard of living for Albertans besides those that will directly be funded by this budget item?

    http://finance.alberta.ca/publications/budget/budget2017/fiscal-plan-complete.pdf

  4. Agreed it is completely reckless, but then again Canadians are the most indebted country on earth so many seem to not care about how much debt we rack up. She is probably going on the idea that the spending cuts the UCP will have to propose will be unpopular and even if they do win, the spending cuts will be too deep they will get booted out after a term or two. Sort of like Ontario 25 years ago where Bob Rae ran up a lot of debt, Mike Harris was elected to deal with the debt problem and Ontario’s slow growth, but his cuts were too deep for most and thus made the PCs politically toxic for many years since. Most people are economically illiterate and thus like whomever promises the most and forget about how to pay for it or have someone else pay for it (big corporations, rich, future generations etc.). The idea of living within our means used to be the norm, but it seems sadly younger generations no longer care about that. We will pay big time if this attitude continues, after all this is the attitude the Greeks had and look where it got them.

    1. I would be curious by what measure we are the worst in the world regarding debt as that would be informative. I’ve looked at debt relative to GDP and Canada is between 11th and 25th in the world. Nothing to boast about I agree. Many federal and provincial departments should be axed completely or rolled back significantly to improve our rank.

      There are also broken systems (e.g., post-secondary education) that need major innovative changes (at no cost to tax payers) to help reduce personal debt on young Canadians.

      Based on external debt (total public and private debt) Canada is 11th in the world.
      https://en.wikipedia.org/wiki/List_of_countries_by_external_debt

      Based on public debt Canada is 15th in the world.
      https://en.wikipedia.org/wiki/List_of_countries_by_public_debt

      Based on consumer debt Canada is about 25th in the world.
      http://business.financialpost.com/news/economy/canadas-household-debt-is-now-bigger-than-its-gdp-for-the-first-time
      https://en.wikipedia.org/wiki/Consumer_debt

  5. As we have seen, and continue to see, the NDP is a nasty scourge on Canada and it’s people, their mandate is clear. If you spend some time reading the Regina Manifesto, Winnipeg manifesto, LEAP manifesto, (which I highly recommend people absolutely do), coupled with the NDP constitution, you’ll quickly discover a ridiculous policy platform that could best be described as outright frightening. Not only does it outline the phase-out of fossil fuels in a scant 34 yrs (LEAP manifesto) says 20 years, it strikes a revolutionary tone in describing everything from guaranteed incomes, massive wealth redistribution, contempt of personal wealth, a re-organization of Agriculture, Mining and Energy. And some other gems such as a commitment to build-out high-speed rail and transit “to every community in this Country.” So to suggest the NDP could be limited to a single issue environmental special interest group or economic ideology. I think is probably inaccurate, instead of a far-left fringe party that would take us slightly left of Hugo Chavez if they were ever elected to power. The fact that the Federal NDP, while not completely surprising, has such a large contingent of supporters who would adopt these policies to this extent speaks volumes. To think that they were actually a contender in the last election shows how close we came to complete economic disaster. As for Ms. Notley, lest we forget that it was just a few months ago that she proudly and publicly endorsed her Federal counterparts and I would have to think that while Tom Mulcair may not have supported this new Manifesto -possibly- the folks that do support it, such as the new leader, are well embedded in this party. I’d find it very hard to believe our Premier wouldn’t be aware of the radical and hostile elements within the Federal party and their attitude towards the Energy Industry in the past. Don’t be fooled.
    The following is an excerpt from the NDP constitution:

    1. Each province of Canada shall have a fully
    autonomous provincial Party provided its
    constitution and principles are not in conflict
    with those of the Federal Party.
    2. In the event of dispute as to whether any
    particular organization is or is not a provincial
    Party in good standing, the Federal Council of
    the Party is empowered to rule on whether an
    an organization shall continue to be a provincial
    Party, subject to appeal to Convention.

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