The provincial government plans on balancing Alberta’s book’s in its first term and officials say they will need to find ways to exercise restraint.
The first quarter fiscal report was released Tuesday by finance minister Travis Toews.
"This Q1 report shows just how much work is needed to get Alberta back on track," said Toews in a statement. "Compared to Q1 last year, we are now paying an additional $93 million on debt servicing instead of on programs and services for Albertans."
The report outlines that in the first three months of the fiscal calendar (April-June) actual revenue was virtually identical to last year during the same time frame at $13.4 billion.
Total expenses were $364 million lower compared to last year. Operating costs increased by $270 million while debt servicing also grew by $93 million.
Toews suggests the figures are due to the increase in debt incurred last year, which required tax dollars to be diverted from programs to pay for the resulting higher interest costs.
"I'll be frank, these numbers do not paint a rosy picture," said Toews during Tuesday's announcement. "Simply put, this pattern needs to change."
"We've committed to ensure that we're delivering high quality services to Albertans, services that Albertans need, but, at the same time, being fiscally responsible."
The provincial debt as of March 31, 2019 was $62.7 billion.
Officials say under the previous NDP government that number would have risen to $120 billion by 2024.
The report does say that Income tax revenue soared $166 million higher this year, something Toews believes is due to growth in household income and corporate profits.
Toews would not give a firm date as to when the province will release its budget, but indicated Albertans can expect one sometime later this fall.
