What the federal government’s fall economic update means for Albertans

Scott Crockatt with the Business Council of Alberta said the shrinking deficit – from around $53 billion to $36 billion – is promising for the country’s economic future.

A federal budgetary surplus has been forecast for the first time since the Liberals came to power. Economic experts think it means the country, including Alberta, is in a good place financially, and Albertans can expect changes in the province’s energy sector.

Scott Crockatt with the Business Council of Alberta said the shrinking deficit – from around $53 billion to $36 billion – is promising for the country’s economic future.

“We’ve seen the deficit come down, and the labour market numbers coming out today show the Canada labour market is in a strong position. And within that, Alberta is probably in the strongest position,” he said.

“So it’s much like we’re the best player on a team that’s doing well.”

Crockatt said there were a lot of good announcements around decarbonizing the energy sector in the budget, but it lacked short-term initiatives.

“How are we going to meet the growing needs for energy and food that the world really needs from us right now?” he said.

“Things like hydrogen and small modular reactors are going to be great in the distant future, and carbon capture in the near future. But what are we going to really be doing today to take advantage of the opportunities and even the responsibilities that we have?”

The government is proposing to put a new tax on share buybacks after companies have been buying their own stock back in a bid to return value to existing shareholders.