Alberta goes for another ride on the royalty roller coaster
After twenty years of writing about Alberta politics and about same number of provincial budgets, it’s sometimes hard not to write the same thing year after year: Alberta relies too heavily on revenues from oil and gas royalties to fund the daily operations of government.
That’s the baked-in analysis of Alberta politics. Our provincial government’s over-dependence on oil revenues is both a blessing and a curse. When the price of oil is high, things are really good. When the price of oil is low, it’s really bad. It is the central component of what we used to call the “Alberta Advantage.”
Alberta has been able to afford to have the lowest taxes in Canada and high spending on public services because the government could use oil and gas royalties to offset what every other province would normally collect through taxes.
