alberta fiscal update

Responding to the Q1 update Tuesday, the NDP member for Edmonton-North West David Eggen called the corporate tax cut an “epic failure.”, As far as he’s concerned, the report overall was “an absolute joke.”. MLAs from both sides of the aisle will have the chance to question Toews and other cabinet members about the update. This material may not be distributed or published in the PRC, except under circumstances that will result in compliance with any applicable laws and regulations. SUMMARY. Trevor Tombe, associate professor of economics at the University of Calgary, said he wants to see how the government plans to fill that fiscal hole. Side note: The Province of Saskatchewan also released a fiscal update, showing a $2.1 billion deficit for FY20/21 (2.9% of GDP). BMO and its affiliates do not represent that this material may be lawfully distributed, or that any financial products may be lawfully offered, in compliance with any applicable registration or other requirements in the PRC, or pursuant to an exemption available thereunder, or assume any responsibility for facilitating any such distribution or offering. Kenney's government has so far been reluctant to deal with the revenue side of the equation, preferring to focus on spending restraints. Steady with the same period last year. The province spent an extra $93 million on debt servicing costs compared with this time last year, he said, attributing it to “rash economic policy choices” made by the NDP. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. • $13.4 billion: Total revenues. To Canadian Residents: BMO Nesbitt Burns Inc. furnishes this report to Canadian residents and accepts responsibility for the contents herein subject to the terms set out above. In the UK this document is published by BMO Capital Markets Limited which is authorised and regulated by the Financial Conduct Authority. The Alberta Recovery Plan builds on work started in Budget 2020 and supports immediate jobs for Albertans. Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. Tanya Fir, who headed the original portfolio, has been moved to the backbenches. While the size of the deficit may make headlines on Thursday, Alberta is facing the same situation as many governments around the world trying to deal with the impact of the pandemic. Alberta NDP Finance critic Shannon Phillips said the economy was struggling before COVID-19 hit and the Kenney government has done little to jumpstart it. The first peek at the financial books since the latest downturn in Alberta’s economic recovery could offer some insight into how bad parts of 2018 were, and if better days are ahead. To Korean Residents: This material is not provided to make a recommendation for specific Korean residents to enter into a contract for trading financial investment instruments, for investment advising, for discretionary investment, or for a trust, nor does it constitute advertisement of any financial business or financial investment instruments towards Korean residents. The first-quarter fiscal update to be released Thursday will forecast the largest deficit in Alberta history. By continuing to use our site, you agree to our Terms of Service and Privacy Policy. Premier Jason Kenney warned earlier this week the deficit would be record-breaking. BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A. "What we need to confront and have a conversation about though is, what do we do next year and the year after?". This report is directed only at entities or persons in jurisdictions or countries where access to and use of the information is not contrary to local laws or regulations. On Tuesday, Kenney said the province's revenues dropped by more than $10 billion in the first quarter, mainly due to flagging prices in the energy sector. The Province seeks to balance the budget by FY24/25. Debt was projected to hit $100 billion by 2023-24 under the former NDP government, and that’s what the new administration is focusing on. We reserve the right to close comments at any time. We need to hold the line, and part of holding the line is to make sure that the public services are there when we need it for ourselves and our families.”. Kenney said Schweitzer will work to implement Alberta's recently launched plan to rejuvenate its faltering economy. Expenses in the first three months of 2019-20 fell by $364 million compared with this time last year, hitting $14.3 billion. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. Borrowing to get the province through the pandemic is the correct course of action for the short-term, he said. This material has not been reviewed or approved by any regulatory authority in Hong Kong. Marc Desormeaux HISTORIC DOWNTURN, FISCAL PRESSURES IN WILD ROSE COUNTRY. That's a touch smaller than the $2.4 billion expected in the budget plan (which did incorporate the COVID impact), in part because of higher federal transfers. A welcome email is on its way. Kenney also announced the province will release a fiscal update on Thursday, outlining the costs of aiding Alberta's recovery from COVID-19. Audience Relations, CBC P.O. The next issue of Edmonton Journal Headline News will soon be in your inbox. Doug Schweitzer, who was justice minister, will head the rebranded Jobs, Economy and Innovation department. Quarterly fiscal and economic updates on the budget are provided 3 times a year on or before the last day of August, November and February. It fails to provide essential economic information about projections into the future … and quite frankly it looks more like a flimsy excuse for making cuts here in the fall,” Eggen said. Kenney also announced the province will release a fiscal update on Thursday, outlining the costs of aiding Alberta's recovery from COVID-19. “This effectively takes the Economic Development, Trade and Tourism portfolio (and) renames it,” Kenney said. The first-quarter fiscal update to be released Thursday will forecast the largest deficit in Alberta history. • $1.5 billion: Other tax revenues, down $66 million. “The very small amount of fact we can glean from this is that we’re in a holding position. Putting Schweitzer in place isn't going to fix anything, she said. "This is going to be the biggest deficit in the history of Alberta by a country mile," he told reporters at a news conference on Tuesday. Comments on this story are moderated according to our Submission Guidelines. “Alberta is being hit especially hard with the double whammy of the global coronavirus recession, on top of that the collapse of energy prices which has clobbered our largest industry - oil and gas,” Kenney said in front of Government House in Edmonton. Box 500 Station A Toronto, ON Canada, M5W 1E6. Comments may take up to an hour for moderation before appearing on the site. What his government won’t do, though, is reverse its corporate tax cut — even if it doesn’t bring in the economic growth the UCP is banking on. Residents: BMO Capital Markets Corp. furnishes this report to U.S. residents and accepts responsibility for the contents herein, except to the extent that it refers to securities of Bank of Montreal. Treasury Board and Finance, Government of Alberta 2018–19 Third Quarter Fiscal Update and Economic Statement, Includes Path to Balance February 2019 BMO Financial Group (NYSE, TSX: BMO) is an integrated financial services provider offering a range of retail banking, wealth management, and investment and corporate banking products. To PRC Residents: This material does not constitute an offer to sell or the solicitation of an offer to buy any financial products in the People’s Republic of China (excluding Hong Kong, Macau and Taiwan, the “PRC”). Following his speech, an opposition NDP member will be given 10 minutes to respond. Residents: In the UK, Bank of Montreal London Branch is authorised and regulated by the Prudential Regulation Authority and the Financial Conduct Authority (“FCA”) and BMO Capital Markets Limited is authorised and regulated by the FCA. • $4 billion: Income tax revenue, up $166 million. The first quarter saw the deficit hit $835 million, about $365 million lower than the same time last year. The contents hereof are intended solely for the use of, and may only be issued or passed on to, (I) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (II) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together referred to as "relevant persons"). Robert has been with the Bank of Montreal since 2006. Many doctors, particularly in rural areas, said they could no longer afford to both work in hospitals and keep up their practices. Alberta is on track to end the current fiscal year with a $24.2-billion deficit, the largest in the province's history, and the finance minister is suggesting more cuts are on the way. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein. There is not a plan beyond the current year, but suffice it to say that some decisions will have to be made (the Finance Minister again hinted at spending efficiencies, to start). Shandro has been in an open battle with doctors after he government tore up their original fee agreement in February. The contents hereof are intended solely for clients which satisfy the criteria for classification as either a “professional client” or an “eligible counterparty”, each as defined in Directive 2014/65/EU (“MiFID II”). Government of Alberta annual report The government's annual report is a permanent public record of the dollars spent and the results achieved for the fiscal year (April 1 to March 31). In a departure from recent years, the government didn’t provide any information on projections — not revenues, expenses, oil prices or even the provincial GDP. “It’s hardly a fiscal update at all. Sign up to receive daily headline news from the Edmonton Journal, a division of Postmedia Network Inc. Travis Toews here presenting Q1 fiscal update for Alberta. Welcome to your bookmarks menu. If you don't see it please check your junk folder. Please try again. To U.S. The government is refusing to provide any fiscal projections for Alberta’s coffers, even as it warns spending restraint is in the cards for the fall budget. Real GDP is expected to contract 8.8% this year (deeper than our -7.0% call) before rebounding 4.6% next year (slower than our +6.2% call). This document is not to be construed as an offer to sell, a solicitation for or an offer to buy, any products or services referenced herein (including, without limitation, any commodities, securities or other financial instruments), nor shall such Information be considered as investment advice or as a recommendation to enter into any transaction. That’s $859 million lower than the same period last year. The largest previous deficit was in 1986, when the deficit equalled 6.8 per cent of the province's GDP, Tombe said. Economic outlook . The Province of Alberta is projecting a $24.2 billion deficit for FY20/21, meaningfully larger than the $7.3 billion expected in the pre-COVID budget tabled early this year. We ask you to keep your comments relevant and respectful. He said it will be her job to help municipalities get through the COVID crisis and to stop them from raising taxes at a time when every aspect of the economy has been hard hit. "We need to have a conversation started earlier around where we go from here, how do we overcome this fiscal challenge, what are we going to do on the revenue side of the budget, which has been missing in that conversation to date.". Description Quarterly fiscal update and economic statement related to the finances of the Province of Alberta. While the situation has improved since April, oil prices are nowhere near the benchmark $58 US price for a barrel of West Texas Intermediate forecast in the February budget.

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