• Sign up for the Daily Digest E-mail
  • Facebook
  • X
  • LinkedIn

BOE Report

Sign up
  • Home
  • StackDX Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Alberta government’s capacity to raise revenues has shrunk 41.3% since 2014/15; moving closer to “have-not” status

December 3, 20206:30 AM Globe Newswire

CALGARY, Alberta – Alberta’s ability to raise own-source revenues — known as the province’s fiscal capacity—has shrunk substantially in the past six years. This development has rendered the province’s high spending levels unsustainable, and places Alberta at risk of becoming a “have-not” province, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Just a few years ago, Alberta was able to raise large amounts of revenue with comparatively low tax rates in part because of large natural resource revenues, which have declined substantially.” said Ben Eisen, a senior fellow with the Fraser Institute and author of The Great Convergence: Measuring the Fiscal Gap Between “Have” and “Have-Not” Provinces.

The study finds that as recently as 2007-08, Alberta’s per person fiscal capacity — again a measure of the province’s ability to raise own-source revenues, was nearly twice as high (92.8% larger) as the rest of Canada.

This year, the per person fiscal capacity gap between Alberta and the rest of Canada is estimated to be just 4%. The gap has closed almost entirely.

“Per person spending in Alberta is about 20% higher than in other large provinces. This was unsustainable before, but now that the province’s fiscal capacity has declined, we’re seeing historically high deficits year after year.”

In fact, if Alberta’s fiscal capacity gap continues to shrink relative to the rest of Canada, the province could become eligible for equalization transfers before long, making it a so-called “have-not” province.

“The idea that Alberta’s fiscal capacity could fall to the point it would be within have-not status would have been unthinkable a decade ago. But now, here we are. Policymakers in Edmonton need to recognize how much has changed, and adjust their spending plans accordingly,” Eisen said.

Follow BOE Report
  • Facebook
  • X
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • New oil and gas jobs from BOE Report Jobs
  • Hemisphere Energy Announces Normal Course Issuer Bid Renewal
  • Trump says US to impose 50% tariff on copper imports, copper futures jump
  • Canada maps out widening strait to LNG riches
  • Discount on Western Canada Select narrows

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contact
    • Report Error
    BOE Network
    © 2025 Stack Technologies Ltd.