It turns out not everything’s bigger in Texas.
As Alberta braces for what will be a disappointing budget for one group or another, a new Fraser Institute report compares the Prairie province’s fiscal performance to the U.S. state with a very similar economic history.
While Alberta outperformed Texas on most economic indicators from 2000 to 2013, the same cannot be said for its bookkeeping, says Mark Milke, a senior fellow at the public policy think tank and author of the report.
“Alberta’s got a spending problem,” Milke tells Yahoo Canada News.
Oil and gas revenues fluctuate regularly, he says. Alberta shouldn’t bank on the boom years.
“If it had better controlled spending over the past decade, it would still be producing budget surpluses. Instead, it’s staring a lot of red ink in the face because it couldn’t control its spending.”
Oil and gas accounts for 26.8 per cent of Alberta’s gross domestic product. In Texas, it amounts to 11 per cent.
Both jurisdictions have seen relativelyRead More »from Report urges Alberta to cut public sector spending ahead of budget