Recent new reports have blamed low oil prices and the wildfires in Fort McMurray for Alberta’s $10.9-billion deficit. Consider that in fiscal 2005-16, provincial government spending growth was considerably greater than the rate required to keep pace with population growth and inflation. Of course, the current government can’t be reasonably blamed for spending growth that occurred before it took office. RelatedAlso, there’s a bigger problem with blaming oil prices alone for Alberta’s budget deficits — it’s symptomatic of a broader tendency to blame energy prices for everything wrong with the provincial economy without recognizing how public policy choices contribute to the problems. Policy choices that stoke economic uncertainty, undermine growth, and cause the budget deficit to balloon deserve much of the blame for Albeta’s economic problems.

Source: National Post August 31, 2016 18:00 UTC