25-Feb-2011

rtpeat_alberta

Alberta Budget maintains “Alberta Advantage”

+ With any other tax system Albertans and Alberta businesses would pay at least $11 billion more in taxes each year.

+ Albertans have:

1. higher basic personal exemptions

2. lower tax rates, both personal and business

3. No retail sales tax

4. No health care premiums

+ Retail sales tax and health care premiums would represent approximately $5 – $6 billion in revenues.

+ Alberta receives $558 per person in health transfers from the Federal Government while every other province receives $805 per person.

+ Bitumen royalties are forecast to climb to $4.1 billion this year and to over $7 billion by 2013-2014. This is based primarily on more production

+ 75% of our expenditures are on health care, education, advanced education and seniors.

+ Capital infrastructure spending of approximately $6 billion per year will continue over the next 3 years focused on roads, schools, and hospitals.

Sensitivities to Assumptions – Fiscal Year 2011-2012

Change

Impact (millions of $’s)

Natural Gas Price (Cdn $/GJ)

-10 ¢

-51

Exchange Rate (US ¢ / Cdn $)

+1 ¢

-154

Oil Price (WTI US$ / bbl)

-$1.00

-141

Interest Rates

+1%

-212

Personal Income

-1%

-115