Budget 2014 - The Building Alberta Plan

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Budget 2014 - The Building Alberta Plan - presentation by Doug Horner, President of Treasury Board and Minister of Finance - March 6, 2014. You may also download this presentation as PowerPoint or PDF at this address: http://finance.alberta.ca/publications/budget/budget2014/index.html#presentation

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Budget 2014 - The Building Alberta Plan

  1. 1. Budget 2014 March 6, 2014
  2. 2. Fully balanced budget Operational surplus $2.6 B Operational revenue $43.0 B (up 5.4% from 2013-14) Operational expense $40.4 B (up 3.7% from 2013-14; excludes disaster/emergency assistance) Change in net assets (consolidated surplus) $1.1 B increase
  3. 3. Economic strength Real Gross Domestic Product (GDP) Growth 0 1 2 3 4 5 6 Year-over-year%change Alberta Canada USA 5.2 3.8 3.3 3.7
  4. 4. Economic strength Unemployment rate, 2013 0 1 2 3 4 5 6 7 8 Canadian average Alberta 4.6 % 7.1 %
  5. 5. Oil price differential 50 60 70 80 90 100 110$ WTI WCS $15 $33 $10 $37
  6. 6. 2013 Flood $1.1 B in provincial support over next 3 years • $222 M operational expense • $859 M on capital Money to help people and businesses for reconstruction and mitigation
  7. 7. Booming population
  8. 8. Priority spending
  9. 9. Investing in families and communities 2014/15: $1 B increase to core programs • New operating funding for: • Health • K-12 schools • Post-secondary education • Human services
  10. 10. Comparing expense growth to population plus inflation growth
  11. 11. Building Alberta Increasing net assets
  12. 12. Building Alberta Estimated Assets and Liabilities, March 31, 2015 Alberta is the only province in Canada with net assets ($45 B)
  13. 13. The 4 rules of borrowing Limited to 3.0% of operational revenue Must have a clear repayment plan Must protect Alberta’s AAA credit rating Borrowing only for the capital plan
  14. 14. A plan for debt repayment Annual amounts set aside for debt repayment 0 200 400 600 800 1,000 1,200 13/14 15/16 17/18 19/20 21/22 23/24 25/26 27/28 29/30 31/32 33/34 35/36 37/38 39/40 41/42 43/44 45/46 47/48 ($millions)
  15. 15. Future asset position By 2017, Alberta will have $49B of net assets • $61B in financial assets • $34B in capital assets • $22B of capital debt (thru P3s and direct borrowing) • After a 30-year amortization the debt will be paid off
  16. 16. Net debt to GDP
  17. 17. Investing in our future Total Savings Plan expected to reach $26B by 2016-17
  18. 18. Savings Management Act Investing in our future $1 B (by 2015-16) $200 M (2014-15) $2 B (by 2023-24) $200 M (2014-15)
  19. 19. Budget 2014 www.budget.alberta.ca twitter.com/AB_TB_Finance #ABbudget

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