Premier Danielle Smith’s UCP government recently released Alberta’s fiscal update.
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Premier Klein was right to articulate the benefits of debt-free status but, as the recent fiscal update reminds us, his prediction proved incorrect and over time the burden of debt on Albertan taxpayers has returned. According to the fiscal update, debt interest costs will reach a forecasted $2.7 billion this year, with little change throughout the fiscal forecast that extends to 2024/25.To avoid further increases in the debt burden for Albertans, the Smith government should understand why debt interest payments have reappeared as a meaningful line item on the provincial budget.
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