By Ashley Wiebe/ Charles Lefebvre

Budget shows increase in education and health care spending, projects $10.3 billion deficit

Mar 16, 2017 | 3:21 PM

CALGARY – The provincial government is projecting a lower deficit and increasing spending for healthcare and education, according to the provincial budget.

However, spending and borrowing by the province is expected to increase, with provincial debt predicted to rise to more than $71 billion by 2020.

Finance Minister Joe Ceci, tabling the budget in the Alberta legislature, says the provincial deficit is projected to shrink to $10.3 billion over the coming year, down half a billion from the year before. The budget says the deficit will fall to $9.7 billion in 2018-19, and again to $7.2 billion in 2019-20.

The province is anticipating $45 billion in revenue for 2017-18, and the government anticipates that number to grow to $51.8 billion by 2019-20, based on increases in bitumen production. The province expects to receive $2.5 billion in bitumen royalties this year, $1.3 billion more than last year.

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The budget predicts the average price of oil will be $55 USD per barrel in 2017-18, increasing to $59 in 2018-19 and $68 in 2019-20, based on the West Texas Intermediate.

However, $54.9 billion in total expenses for the year, including the Climate Leadership Plan, are in the forecast, a number projected to increase in the next three years. The Ministry of Health is expected to spend the most this year, with $21.4 billion listed for expenses, up 3.2 per cent from last year. The Ministries of Education, Advanced Education, Community and Social Services, and Children’s Services are also seeing increases in spending this year.

Capital plan liabilities and fiscal plan borrowing sits at $45 billion for the year, and is expected to increase to $71.1 billion by 2019-20.

The government has also announced more information about its promise to eliminate school fees for families.

The government plans to reduce fees by 25 per cent for parents. The savings include removing the costs of textbooks and instruction supplies, and eliminating transportation fees for students who have to travel by bus to their school. The province estimates savings of $54 million per year.

The province also announced it is budgeting $71 million to support job creators with tax credits to encourage investors to support small and medium sized businesses in the province, and is setting aside $13 million to attract new business. $14 million has also been set aside for apprenticeship and training opportunities.

The budget also revealed the province will not be paying any new taxes this year, and mill rates will be frozen this year.

Last year, the province reported $41.4 billion in revenue and $51.1 billion in expenses.