Government Finances Archives - Page 6 of 12

10Sep

By Bob AscahNo Comments

Budget, Capital Spending, Government Finances, Opinion/Research, Uncategorized

First Quarter Update- Sunny update reveals some cracks

Jason Nixon, Treasury President and Minister of Finance Source: CTV News Edmonton However, there were several dark clouds covering the sun in the first quarter numbers that merit a mention. AIMCo has had another trying quarter like other investment managers Investment income is down $2.9-billion “due entirely to negative Heritage Fund and endowment fund income as financial markets deteriorated. These market losses could be reversed although with interest rates rising bond prices will continue to fall.” Hedging debt service costs hasn’t worked out very well Even though debt is declining significantly, debt servicing costs are rising because of debt swap costs. This is unusual because with rates at historic lows one would want to protect against rising rates by entering interest rate swap...

4Sep

By Bob AscahNo Comments

Banks, Energy, Government Finances, Opinion/Research

How the Big Four compare to the Big Five (banks)

How the Big Four with Big Five (banks) In this post I compare the financial performance between the Big Four oilsands producers and the five biggest banks by examining their first half performance. For the Big Four the data is for thee first two quarters and first half ending 30 June 2022. Since the banks have a unique fiscal year end, I compare their first two quarters for the period ending 30 April 2022. The purpose is to inform readers of the relative economic, financial and political power of the two industries. This is achieved by presenting the following metrics Total Revenue Net Income after taxes Royalties payable (not relevant to banks) Taxes payable Taxes payable as per cent of net income Total equity or capital Net income as percent of total equity Share buybacks Dividends pa...

30Jul

By Bob Ascah1 Comment

Budget, Fiscal History, Government Finances, Politics

A Sales Tax for Alberta and the UCP leadership race

Updated 16 August 2022 Well it didn't take too long for a conscientious staffer in Travis Toews' campaign to ferret out the 4 September opinion piece in the Edmonton Journal. In the article Smith setting forward what I think are credible views about Alberta's topsy-Turvey finances stated- Instead, he (Klein) bought off progressives by spending an excessive and unsustainable amount on public services and he bought off conservatives by lowering taxes below the cost of delivering programs. Now the public service screams holy hell at the mention of austerity and taxpayers say they aren’t prepared to pay a dime more. I’m here to tell you: Everyone — on both sides of the political spectrum — needs to suck it up. Alberta needs a three-step financial reset. Step 1: Liquidate the Heritage Fund...

4Jul

By Bob AscahNo Comments

Energy, Government Finances, Investment, Politics

Alberta’s Job Creation Tax Cut: Theory and Reality

In 2023, a book on the Kenney government edited by Ricardo Acuna and Trevor Harrison will be released. I contribute one chapter on Alberta’s Job Creation Tax Cut examining critically whether this one-third cut to corporate income tax has had any positive impact on Alberta’s economy in terms of investment, jobs and wages. In this post (which is not part of the book chapter), I explore the theory behind the corporate income tax cuts. The critical element in my view is in assessing the nature of capital and labour in Alberta and in particular the energy sector, most notably the oilsands. Background In the UCP’s 2019 election platform, a key policy plank was to cut the corporate income tax from 12 per cent to 8 per cent over four years. Two economists- Jack M...

15Jun

By Bob Ascah3 Comments

Budget, Fiscal History, Government Finances, Politics

IT’S FINALLY ARRIVED: A Sales Tax for Alberta: Why and How

Updated 8 July 2022 Interview with Shaye Ganam 630 CHED/ 770 CHQR https://omny.fm/shows/ched-mid-morning/a-sales-tax-for-alberta-why-and-how Read Ascah's opinion piece in the Edmonton Journal 8 July 2022. No this isn't official..yet... and this isn't a prediction or April Fool's Day joke. It's a book that promises to be a summer blockbuster! Sure, I'm the editor and contributor but there are six other academics, financiers, and journalists who weigh in on this controversial subject. Graham Thomson Mel McMillan Ergete Ferede Elizabeth Smythe Ian Glassford Ken McKenzie BUT THERE'S MORE: a foreword from Kevin Taft and Afterword of Trevor Harrison. The volume is the cumulation of a project begun in the fall of 2018, prior to the last provincial elect...

11Mar

By Bob AscahNo Comments

Budget, Education, Government Finances

Post-mortem on the Provincial Budget

Updated 14 March 2022 On Thursday, Abpolecon.ca and three sponsoring organizations hosted an expert panel of the 28 February provincial budget. The expert panel consisted of Ken Kobly, CEO of the Alberta Chambers of Commerce, Professor Lindsay Tedds of the University of Calgary's School of Public Policy, Jonathan Teghtmeyer, Executive Staff Officer, Government, Alberta Teachers' Association, and Professor Jared Wesley of the Department of Political Science at the University of Alberta. The presentations led to a spirited discussion on such subjects as: the province's new swagger; the "care economy, missing in action;" misalignment between rural municipalities and provincial policy initiatives; and the symbolism of Larry the pipefitter who played a cameo role in the 2022 bud...

8Mar

By Bob Ascah2 Comments

Energy, Government Finances

Energy company shareholders getting paid back after years of famine

In this post, I examine the dividend streams of the four major oilsands producers as well as other major producers of oil and natural gas. The PDF figures which follow indicate the dividends paid or declared by 18 of Canada's largest oil and gas producers over the last 10 or so years. Overall there was a notable drop in dividends paid beginning in 2016, about one year after the significant plunge in oil prices. Beginning in late 2020, with a recovery in oil prices, there has been a significant increase in dividends going to shareholders. Up until 2021 oil and gas shareholders suffered capital losses on the prices of their shares. Those investors that sold their shares at significant losses are regretting the rebound in oil and gas company shares. Logos of the Big Four ...

1Mar

By Bob AscahNo Comments

Budget, Capital Spending, Energy, Fiscal History, Government Finances

Budget 2022- Analysis and Opinion

The Alberta government’s recent budget reveals- once again- the provincial treasury’s over-dependence on non renewable resource revenue. This budget continues a six-decade tradition of resource revenue making up for a deficient, unstable revenue base to produce budget balance. However, as the chart below illustrates Alberta has never had a budgetary surplus, when excluding resource revenues since 1965-66. The surplus targets for fiscal years 2022-25 also produce the same results. This year, Albertans are expected to only contribute 78 cents on the dollar to Alberta’s expected revenues. If oil persists at an average of $90 U.S. per barrel over the whole fiscal year beginning April 1, then an extra $10-billion will be received meaning taxpayers will only foot 59 per cent of the bills. C...

27Feb

By Bob AscahNo Comments

Budget, Economic Data, Energy, Government Finances, Opinion/Research, Politics

Budget 2022: the 2023 election begins

Analysis and Opinion On Thursday afternoon, 24 February Travis Toews tabled his fourth budget. From the standpoint of the United Conservative Party, the budget was an unadulterated triumph. Sure, higher oil prices had something to do with the anticipated surplus in 2022-23 ("a traffic cone could balance Alberta's budget," NDP opposition leader Rachel Notley proclaimed before the speech). admitted Toews to interviewers, but other revenue sources were healthier. By sticking to the fiscal plan as outlined in September 2019 by the MacKinnon panel, the government had done the hard lifting of keeping expenses from growing and attracting investment and Albertans were now reaping the fiscal and economic rewards. In this post, I examine the budget address of Toews, its key messages and its impli...

20Feb

By Bob AscahNo Comments

Budget, Fiscal History, Government Finances, Investment, Uncategorized

Hyndman Papers- Budget 1982-83

In the following remarkable document from former Provincial Treasurer Lou Hyndman, he succinctly summarizes the quintessential fiscal policy questions his predecessors and successors have grappled with. These questions relate to: the Alberta public's "rising expectations;" use of Heritage Fund savings and investment income for general operating purposes; the scope for tax increases; how to cope with resource revenue uncertainty; and the sustainability of government expenditures. All these questions are pertinent today. Undated from Lou Hyndman- presumably to caucus or to Treasury Board/Cabinet Key questions The following are some of the key questions to consider in setting the 1982-83 target expenditure level. How should rising public expectations be reconciled with limited financial r...