Alberta’s Auditor General Merwan Saher made the case for long-term financial planning on the part of government in his latest report presented Thursday.
Saher didn’t make any recommendations, but had a clear message. He urges Albertans to demand more transparency from the government when it comes to financial sustainability.
“I don’t think there’s a choice,” said Saher, during Thursday’s press conference.
The auditor, whose eight-year term will be complete at the end of April, said the yearly snapshot provided in the budget is not enough.
“I believe that citizens, in their own best interests, should demand that the government of the day show them how the decisions that have been made today play out into the future,” said Saher.
Time for a new outlook
He said that revenue from oil and gas is not guaranteed, and the province should be demonstrating how it will continue to pay for programs and services in 40 years.
The government has a duty to look at potential risks and how to mitigate them, said the auditor.
Aside from the volatility of oil and gas, Saher used the example of an aging population and the pressure it will put on the health–care system.
According to the report entitled Putting Alberta’s Financial Future in Focus, no government in Alberta has reported about the province’s financial condition in the long–term.
Saher said that needs to change for the sake of future generations.
“I hope this report, this commentary, can be the impetus to have people start to think differently.”
Fiscal gap
The report points out that without the revenues generated from oil and gas, Alberta would of had a deficit every single year. In 2017, it represented about $15 billion.
Saher calls that difference the fiscal gap, and stressed that the current borrowing model is not sustainable.
“Why shouldn’t I ask government today to give me a picture of the future? I think today, Albertans should be concerned with this picture,” said Saher, while holding a graph that highlights the size of Alberta’s fiscal gap.
Albertans should not be accepting on faith that government will be able to pay down its debt with future surpluses, said the auditor.
“We have a responsibility to think into the future.”
This graph shows what Alberta’s deficit would of been without oil and gas revenues. The amounts have been adjusted for inflation. (Auditor General of Alberta)