Despite the Smith government’s plan to grow spending below the rate of inflation and population growth, projected spending has actually increased since the 2022 mid-year fiscal update. And once again, higher spending means Alberta has increased its reliance on volatile resource revenue — not reduced it.

Last month, the Smith government tabled its budget for the upcoming fiscal year, projecting modest surpluses. But when relatively high resource revenue inevitably declines, the government may fall back into deficit due to its high spending. Premier Danielle Smith recognized this risk in her recent address to the province and promised spending “restraint” and less reliance on resource revenue. But Albertans must consider this “restraint” within the context of the Smith government’s spending increases thus far.

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