With the release of the first United Conservative budget for the  Canadian Province of Alberta, the screaming has begun.  It is an austerity budget.

Reducing spending and increasing revenue are difficult steps to take.  For the many constituents of the province, the cost of funding the government and its services rises while the services provided a drop.

Deficit Spending

It is common for governments to spend more than they receive in revenue.  Deficit spending has become an endemic practice.  The main question though, “Is it sustainable”?

When the latest gas and oil production slump arose 5 years ago the Province of Alberta revenues became impacted accordingly (ie., they dropped).  The response, take on more debt.

Debt can be a useful tool to assist the government in maintaining and increasing prosperity but it can be a dangerous approach as well resulting in just the opposite (e.g., rampant unemployment, inflation, recession).

Give but don’t Take

One of the little-publicized problems of rampant spending is the difficulty to go back.  It is basic human nature.  It is much easier to give things than to take them back.

Successive governments experience this issue quite frequently.  Adding programs and services is relatively painless but reducing programs, services and employees will typically create a great outcry (e.g., present-day Alberta).

I do admire the fortitude of leaders and political parties that are willing to push forward with their principles in the face of great opposition  (particularly in the case of fiscal responsibility).

It will be an uphill battle but returning the province to an era of balanced budgets is an admirable cause.