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By Brendan Miller

Alberta NDP accepts surplus recommendations by former VP of ATB Financial

Mar 24, 2023 | 3:59 PM

MEDICINE HAT, AB – Alberta NDP Leader Rachel Notley has accepted recommendations in a report conducted by the former VP and chief economist of ATB Financial.

Todd Hirsch provided the NDP with eight financial recommendations after he conducted 37 interviews with business leaders and groups within the province.

The purpose of the report was to ask Albertans what should be done with the province’s surplus funds and how the province should invest those funds in the future.

Hirsch says several common themes were brought up during the interview process.

Those include diversification of the economy and a balanced approach to paying off debts while also addressing the current needs of Albertans.

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Hirsh says other recommendations were made to provide Albertans more clarity around where the government is investing tax dollars.

“These include consciously creating a goal and purpose for the Alberta Heritage Saving Trust Fund. Maintaining an outer bound limit of a net debt/GDP ratio of 30 per cent and providing transparency around our return on investments to ensure Albertans money is spent prudently,” said Hirsch.

The Alberta NDP has accepted the recommendations and say if elected they will run a balanced budget in 2024.

Summary of Recommendations

• Government should assign a fixed amount of non-renewable resource revenues that will be apportioned for base budgeting purposes.
• Government should consult with Albertans, and consciously determine a goal or purpose for the Alberta Heritage Savings Trust Fund.
• In the absence of a constructive and thoughtful plan, debt repayment should be the default option for all surplus funds.
• The Government of Alberta should maintain the outer bound maximum net debt/GDP ratio of 30 per cent as a fiscal anchor.
• The government should establish a strong, credible and sustainable financial plan that will guide both revenues and expenditures.
• Alberta Treasury Board and Finance should maintain an updated model on the return of investment in three areas: debt repayment, savings and capital investments in physical assets.
• In years when total revenues and resource income exceeds expenditures, apply a fixed formula for how these surplus dollars should be allocated.
• A portion of the surplus should go into fixed endowments, to benefit Albertans in perpetuity.