Alberta released a fiscal update yesterday, and it was pretty abysmal, projecting a record-breaking $24.2 billion deficit. The problem? Was that the province’s finance minister spent much of it lying to the legislature and Albertans about the state of their books going into the pandemic, not to mention not having a real plan for the recovery. But it to put some of the staggering numbers in context, the province is taking in more revenue from gambling, alcohol and cannabis than they are from oil revenues – you know, what they have based their economy on. Meanwhile, their non-existent recovery plan is bro-heavy, and they still insist that they have a spending problem on services rather than a revenue problem from having the lowest tax rate in the country and no sales tax – and you know that’s going to mean the province is looking to slash and burn services, and they’ve already started by picking fights with doctors in the middle of a global pandemic, and those doctors are already shutting down their clinics and moving away. So yeah, Alberta’s got problems.
STAGGERING: *Alberta students will pay more in tuition than oil/gas companies pay in royalties, (b/c oil prices are shot).
*Property tax brings in more than corporate tax (b/c profits are shot)
*Alberta becoming reliant on Ottawa to pay its bills just like it’s any ol’ province.— Jason Markusoff (@markusoff) August 27, 2020
Economists Andrew Leach and Lindsay Tedds have more, starting with this preview thread by Leach that set the stage for the speech of lies that was to come.
The Finance Minister is lying to Alberta right now. He claims that the signs were pointing to an economic recovery "mere months" after they tabled their first budget. That is a lie. Here's his own ministry's economic data. This is really sad, #ableg. pic.twitter.com/KlInC6qrjA
— Andrew Leach (@andrew_leach) August 27, 2020
A reminder. The 2019 and 2020 views were eroding systematically for all of 2019. https://t.co/3ujdAo41vH
— Andrew Leach (@andrew_leach) August 27, 2020
That was a brutal speech from the Finance Minister. No indication that he understands and is willing to convey to Albertans what was happening in Alberta in 2019 before the COVID pandemic. To plan for the future, you need to understand the past. #ableg
— Andrew Leach (@andrew_leach) August 27, 2020
This thread. https://t.co/pUzFfea8QY pic.twitter.com/BMWFqX5WLE
— Dale Smith (@journo_dale) August 27, 2020
https://twitter.com/LindsayTedds/status/1299171987655327744
https://twitter.com/LindsayTedds/status/1299173816577347584