Budget 2014 - The Building Alberta Plan
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Transcript of Budget 2014 - The Building Alberta Plan
![Page 1: Budget 2014 - The Building Alberta Plan](https://reader034.fdocuments.us/reader034/viewer/2022051411/54726da4b4af9fcd0a8b4f06/html5/thumbnails/1.jpg)
Budget 2014 March 6, 2014
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Fully balanced budget
Operational surplus
$2.6 B
Operational revenue
$43.0 B (up 5.4% from 2013-14)
Operational expense
$40.4 B (up 3.7% from 2013-14; excludes disaster/emergency assistance)
Change in net assets (consolidated surplus)
$1.1 B increase
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Economic strength
Real Gross Domestic Product (GDP) Growth
0
1
2
3
4
5
6
Year
-ove
r-ye
ar %
cha
nge
AlbertaCanadaUSA
5.2
3.8 3.3
3.7
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Economic strength
Unemployment rate, 2013
0 1 2 3 4 5 6 7 8
Canadianaverage
Alberta 4.6 %
7.1 %
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Oil price differential
50
60
70
80
90
100
110$
WTI WCS
$15
$33 $10 $37
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2013 Flood
$1.1 B in provincial support over next 3 years • $222 M operational expense • $859 M on capital
Money to help people and businesses for reconstruction and mitigation
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Booming population
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Priority spending
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Investing in families and communities
2014/15: $1 B increase to core programs • New operating funding for:
• Health • K-12 schools • Post-secondary education • Human services
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Comparing expense growth to population plus inflation growth
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Building Alberta
Increasing net assets
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Building Alberta
Estimated Assets and Liabilities, March 31, 2015
Alberta is the only province in Canada with net assets ($45 B)
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The 4 rules of borrowing
Limited to 3.0% of operational revenue
Must have a clear repayment plan
Must protect Alberta’s AAA credit rating
Borrowing only for the capital plan
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A plan for debt repayment
Annual amounts set aside for debt repayment
0
200
400
600
800
1,000
1,200
13/1
4
15/1
6
17/1
8
19/2
0
21/2
2
23/2
4
25/2
6
27/2
8
29/3
0
31/3
2
33/3
4
35/3
6
37/3
8
39/4
0
41/4
2
43/4
4
45/4
6
47/4
8
($m
illio
ns)
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Future asset position
By 2017, Alberta will have $49B of net assets • $61B in financial assets • $34B in capital assets • $22B of capital debt (thru P3s and direct borrowing)
• After a 30-year amortization the debt will be paid off
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Net debt to GDP
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Investing in our future
Total Savings Plan expected to reach $26B by 2016-17
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Savings Management Act
Investing in our future
$1 B (by 2015-16)
$200 M (2014-15)
$2 B (by 2023-24)
$200 M (2014-15)
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Budget 2014 www.budget.alberta.ca
twitter.com/AB_TB_Finance #ABbudget