This presentation looks at the fiscal management issues facing Alberta as part of eliminating their net government debt.

1. BY: PAUL YOUNG CPA, CGA
DATE: MARCH 19, 2017
Alberta Fiscal Management –March
2017

2. • SME – Financial Performance Management (TM1, Cognos Controller and Cognos Disclosure
Management, OpenPages, Algorithmics, Cognos Integrated Server, Cognos Command Center and
Datawatch)
• Industry Experience
• 15+ years in Corporate Reporting, Budget & Forecasting, Costing, Business Process
Management, Internal Audit and Controls, Risk Management, Financial Analysis, Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the Finance, Risk Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public Finance and Advance
Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market segment
Paul Young - Bio

3.  2017-2018 Budget
Agenda

4.  BMO Economics
Alberta Budget 2017-2018
Stats Canada
Canada oil and coal Manufacturing sales
Issues facing Alberta
• Production is being added, but not
employment
• Forestry sector / Softwood Lumber
import tax
• Investment going to other jurisdiction like
Texas
• Pipeline capacity

5.  http://business.financialpost.com/news/economy/moodys-dbrs-cast-worried-eye-on-albertas-debt-and-
recovery-hopes-based-on-oil
Alberta / Credit Rating

6.  RBC – March 16, 2017
Government – Net Debt

7. Government Interest cost
https://www.fraserinstitute.org/sites/default/files/cost-of-
government-debt-in-canada-2016.pdf
Comment:
• Alberta interest is not $800M/year
• Provinces like Ontario/PQ interest
cost is 3rd largest expense
• Government debt has paid back
• Running Surpluses
• Spending cuts
• Selling off assets

8. Government spending by Area

9. Government spending by Area

10.  http://www.cbc.ca/news/canada/calgary/alberta-bc-budgets-per-capita-comparison-1.3996276
Alberta vs- British Colombia

11. Gap Action / Alberta
Issues:
• Oil is struggling to get above $60/Barrel
• Government will have to cut expenses (salaries/cost)
• Government will have to run surpluses to pay down the debt
• Carbon Tax revenue has to be made up
• Alberta spends $5B more than BC on program spending

12. Global TV – June 28, 2016
CBC – April 22, 2012