Budget 2014 - The Building Alberta Plan - presentation by Doug Horner, President of Treasury Board and Minister of Finance - March 6, 2014. You may also download this presentation as PowerPoint or PDF at this address: http://finance.alberta.ca/publications/budget/budget2014/index.html#presentation

1. Budget 2014
March 6, 2014

2. Fully balanced budget
Operational surplus
$2.6 B
Operational revenue
$43.0 B
(up 5.4% from 2013-14)
Operational expense
$40.4 B
(up 3.7% from 2013-14; excludes
disaster/emergency assistance)
Change in net assets
(consolidated surplus)
$1.1 B increase

3. Economic strength
Real Gross Domestic Product (GDP) Growth
0
1
2
3
4
5
6
Year-over-year%change
Alberta
Canada
USA
5.2
3.8
3.3
3.7

4. Economic strength
Unemployment rate, 2013
0 1 2 3 4 5 6 7 8
Canadian
average
Alberta 4.6 %
7.1 %

5. Oil price differential
50
60
70
80
90
100
110$
WTI WCS
$15
$33
$10 $37

6. 2013 Flood
$1.1 B in provincial support over next 3 years
• $222 M operational expense
• $859 M on capital
Money to help people and businesses for
reconstruction and mitigation

7. Booming population

8. Priority spending

9. Investing in families and
communities
2014/15: $1 B increase to core programs
• New operating funding for:
• Health
• K-12 schools
• Post-secondary education
• Human services

10. Comparing expense growth to
population plus inflation growth

11. Building Alberta
Increasing net assets

12. Building Alberta
Estimated Assets and Liabilities, March 31, 2015
Alberta is the
only province
in Canada
with net
assets ($45 B)

13. The 4 rules of borrowing
Limited to 3.0% of operational revenue
Must have a clear repayment plan
Must protect Alberta’s AAA credit rating
Borrowing only for the capital plan

14. A plan for debt repayment
Annual amounts set aside for debt repayment
0
200
400
600
800
1,000
1,200
13/14
15/16
17/18
19/20
21/22
23/24
25/26
27/28
29/30
31/32
33/34
35/36
37/38
39/40
41/42
43/44
45/46
47/48
($millions)

15. Future asset position
By 2017, Alberta will have $49B of net assets
• $61B in financial assets
• $34B in capital assets
• $22B of capital debt (thru P3s and direct borrowing)
• After a 30-year amortization the debt will be
paid off

16. Net debt to GDP

17. Investing in our future
Total Savings Plan expected to reach $26B by 2016-17

18. Savings Management Act
Investing in our future
$1 B
(by 2015-16)
$200 M
(2014-15)
$2 B
(by 2023-24)
$200 M
(2014-15)

19. Budget 2014
www.budget.alberta.ca
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