Alberta’s Finance department says that the final step in government’s commitment to eliminate the debt will be taken through new legislation that requires the $3.5 billion set aside in the Debt Retirement Account only be used for debt repayments.

“Premier Klein pledged Alberta’s $23 billion debt would be eliminated, and he has kept that promise,” Finance minister Shirley McClellan said. “The final $3.5 billion will be locked by law into the Debt Retirement Account, only to be used to pay the remaining accumulated debt as it matures. The Fiscal Responsibility Act will continue to outlaw deficits.”

A further proposed amendment would increase the amount of non-renewable resource revenue the government can use for the budget from $4 billion to $4.75 billion. “Average resource revenue has exceeded $8 billion over the last five years, and the outlook is for revenue to stay above the $4.75 billion level,” McClellan said. “With the accumulated debt eliminated, Albertans have told us that, if resources are available, the government should address key priority areas more aggressively.”

Other amendments will simplify the calculation of the economic cushion/ contingency allowance and clarify the transferring of money into the Heritage Fund and endowment funds. As announced in Budget 2005, money will be added to the Heritage Fund for inflation proofing and as the first allocation for the advanced education endowment.

http://www.finance.gov.ab.ca