(usda loan mortgage companies, qualifications for a conventional mortgage loan, mortgage home loan process, va mortgage loan credit score requirements, what is the mortgage rate for a va loan, how to apply for a va mortgage loan, mortgage loan omaha, movement mortgage va loan, sierra pacific mortgage my home loan, when to refinance mortgage loan, how much is a jumbo mortgage loan, mortgage loan options for first time home buyers, mortgage loan income to debt ratio, what does it take to be a mortgage loan officer, refinance mortgage and equity loan, qualify for a fha mortgage loan, second mortgage or home equity loan, advantages of a va mortgage loan, va mortgage loan closing costs, apply for mortgage loan online with bad credit, mortgage loan disclosures within 3 days, how to get home mortgage loan, federal home loan mortgage company, prequalify for mortgage loan online, refinance mortgage vs home equity loan, citigroup mortgage loan trust inc phone number, mortgage loan pre approval online, mortgage loan expenses, apply online for mortgage loan, second mortgage loan companies, harp loan second mortgage, fha loan without mortgage insurance, home loan mortgage broker, can i refinance my mortgage and home equity loan together, what is the maximum loan amount for a reverse mortgage, 200k loan mortgage, can i get a home improvement loan with my mortgage, 21st mortgage loan requirements, no mortgage home equity loan, pre approved mortgage but denied loan, bank or mortgage company for home loan, mortgage loan grants, va loan mortgage companies, 100 loan to value mortgage refinance, mortgage loan rate vs apr, veterans mortgage loan, estimate mortgage loan approval amount, who can get a va mortgage loan, is a home equity loan the same as a mortgage, va mortgage loan eligibility, difference between mortgage and home loan, reverse mortgage loan rates, reverse mortgage home loan, reverse mortgage loan scheme sbi, best cheapest car insurance company, who is the best car insurance company for young drivers, best term insurance company, best online car insurance company, best insurance company for drivers with points, best cheap car insurance company, best company for auto insurance, best cheapest auto insurance company, best car insurance company for new drivers, best company for car insurance, cheapest best auto insurance company, which is the best insurance company for auto, what is the best home and auto insurance company, what is the best and cheapest auto insurance company, best and cheapest car insurance company, best company for home and auto insurance, navigators insurance company am best rating, best car insurance company 2015, what is the best insurance company for auto, best car insurance company california, what is the cheapest and best car insurance company, best car insurance company in california, best online insurance company, who is the best rated auto insurance company, best insurance company for auto and home, automotive accident lawyers, accident automotive, automotive insurance company, cheap automotive insurance, automotive insurance, automotive insurance quotes, automotive insurance new york, automotive insurance companies, automotive certification online)

Guest Opinion: Smith government can deliver cheques to Albertans

content of the article

This fall, Saskatchewan’s Moe government plans to send $500 checks to taxpayers in light of that province’s recent windfall in resource receipts.

advertising 2

content of the article

While this may seem like an attractive policy, the new Smith administration should resist the temptation to follow Saskatchewan’s lead.

content of the article

While Albertans should benefit from the province’s resources, there are better ways to do so, and that is a resource income savings fund.

In Alberta, resource revenues, which include oil and gas royalties, remain a volatile source of revenue that helps drive a familiar cycle.

In times of relatively high resource prices, the government tends to run budget surpluses and increase spending.

When resource prices inevitably fall, the province inevitably turns to deficit.

Consider the last commodity cycle.

As resource receipts began to increase, expenditure per person in Alberta (adjusted for inflation, excluding debt interest costs) increased from $7,393 in 1998 to $13,114 in 2008.

advertising 3

content of the article

As soon as resource revenues fell, the province had to borrow money (i.e. run deficits) to pay for expenditures that could only be sustained – without deficits – when resource revenues were high.

These budget deficits resulted in a massive accumulation of debt that Alberta’s taxpayers ultimately have to fund.

Today, with its recent windfall, the Smith administration should avoid falling into the same cycle and instead set up a fund to avoid future deficits and pay checks to residents — not just once, but continuously.

To understand exactly how that would work, look to Alaska.

In 1976, the Alaskan government established the Permanent Fund.

(Alberta established the Heritage Fund that same year, though it was valued at just $16.2 billion in 2019-20, compared to $65.3 billion for the Alaska fund.)

advertising 4

content of the article

Under the Alaska Constitution, the state government is required to contribute a specified percentage of all mineral revenues to the fund each year, thereby removing a portion of the mineral revenues from the state budget, alleviating the pressure for increased spending during periods of relatively high mineral revenues.

In addition, a portion of the Fund’s income must be set aside each year to offset the effects of inflation and ensure that the Fund’s real value is preserved.

And crucially, a portion of the fund’s income is paid directly as dividends (ie, checks) to Alaskans, which is key to the fund’s success.

In Alaska, the annual dividend directly links the financial well-being of citizens (in the form of annual cash payments) to fund performance.

advertising 5

content of the article

Put another way, because Alaskans have a direct financial interest in the fund, they are more concerned about its independence, sustainability, and investment performance than they otherwise would be, creating a real constraint on government action (e.g., the spend savings). ), which could adversely affect the performance of the fund.

The Alberta government should reinvigorate the Heritage Fund by learning from Alaska’s success.

That means introducing a constitutional requirement for constant contributions, inflation-proofing the fund, and paying annual dividends to Albertans.

As Alaska has proven, it is possible to prioritize fiscal stability and provide residents with ongoing controls.

Tegan Hill is Senior Economist at the Fraser Institute.

Display 1


Postmedia strives to maintain a vibrant but civilized forum for discussion and encourages all readers to share their views on our articles. Comments may take up to an hour to be moderated before they appear on the site. We ask that you keep your comments relevant and respectful. We’ve turned on email notifications – you’ll now receive an email when you get a reply to your comment, there’s an update on a comment thread you follow, or when a user you follow comments follows. For more information and details on how to customize your email settings, see our Community Guidelines.

Leave a Reply

Your email address will not be published. Required fields are marked *

| |
Back to top button