Last week in Westlock, there was a very visible reminder that while this province is one of the most well-off jurisdictions in the country if not the world, we’re not immune from taking on debt.
The Canadian Taxpayers Federation visited Westlock with their debt clock, which is essentially a trailer with a running tally of the amount of money the provincial government has borrowed. That figure is in excess of $10 billion according to the CTF, which translates to about $2,500 for each Albertan.
Meanwhile the provincial government claims a balanced budget, which many critics have suggested is misleading — balancing an operating budget while taking on debt for capital projects does not necessarily mean a balanced budget.
Regardless of how you do the counting, the question arises whether it’s ever justified for a government to take on debt. Very good arguments can be made for either position.
On the one hand, taking on debt means paying interest on that debt, which will make it more difficult for future governments to balance their own books. The CTF have suggested the province could be paying $1.4 billion in annual interest payments by 2016, and that’s certainly no small chunk of change.
On the other hand, if there are projects that are necessary for the people of Alberta, whether we’re talking about schools, hospitals, roads or anything else, it may be worthwhile to take on debt so those projects can be completed when they’re needed instead of 10 years down the road.
Hearing the argument from the CTF that the province is spending money frivolously while in the same breath they ask for donations to fund the debt clock and vehicle to tow it around — arguably a frivolous expense in and of itself — is perhaps laughable but the point they’re trying to make is a valid on.
Albertans deserve a clear picture of what the province’s finances are. With an increasingly complicated budget presentation, or complicated at least when compared to the relatively straightforward presentations previous governments have use, it becomes difficult for the layperson to know what is the bottom line.
When the average Albertan is cut out of the loop in this way, that’s simply bad for democracy. People simply can’t make educated choices without all the information.
