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Old Posted Jan 13, 2015, 5:43 PM
DarthMalgus DarthMalgus is offline
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Join Date: Nov 2013
Posts: 534
Originally Posted by GreaterMontréal View Post
yes and no, if Alberta had a PST , you would not have the same problem. The oil royalties could be an additional source of revenue for the province.
The big problem is that the provincial government annually pins its budget to a predicted oil price for the year (this year was over $90 a barrel I believe) rather than basing spending on a low oil price (say, $50 a barrel for example) and putting the rest into long term savings like the Heritage Fund. The Klein government was able to deliver budget surpluses on oil prices as low as $9 a barrel in 1998. Since Klein left, there has been no fiscal discipline whatsoever in this province.
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