A federal budget surplus is expected for the first time since the Liberals came to power. Economic experts believe this means the country, including Alberta, is in a good financial position, and Albertans can expect changes in the province’s energy sector.

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Scott Crockatt of the Business Council of Alberta said the reduction in the deficit – from about $53 billion to $36 billion – is promising for the country’s economic future.

“We have seen the deficit shrink, and the labor market numbers released today show that the Canadian labor market is in good shape. And within that, Alberta is probably in the strongest position,” he said.

“So it’s kind of like we’re the best player in a team that’s doing well.”

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Crockatt said there were lots of good announcements about decarbonizing the energy sector in the budget, but lacked near-term initiatives.

“How are we going to meet the growing energy and food needs that the world really needs from us right now? he said.

“Things like hydrogen and small modular reactors are going to be great in the distant future, and carbon capture in the near future. But what are we really going to do today to take advantage of the opportunities and even the responsibilities that we have ?

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Fall economic statement to include proposed tax on corporate stock buybacks: source

The government is proposing to impose a new tax on share buybacks after companies buy back their own shares in a bid to restore value to existing shareholders.

Under the proposed rule, companies would have to pay a 2% corporate-level tax on the net worth of all types of share buybacks – a levy that would come into effect on January 1, 2024.

Crockatt said the tax will affect resource and energy companies, especially those based in Alberta.

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“We’ve just been through the best part of a decade of really, really tough business and economic performance,” he said. “A lot of these organizations have made virtually no money and have suffered for years from really run down balance sheets and stock prices.

“They’re looking to undo some of that damage and return capital to investors who are being used by these companies, which – for the first time in a long time – are seeing a quarter of a quarter of very good numbers.”

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Liberals defend carbon pricing and potential tax hikes as ‘most effective’ way to fight climate change

Environment Minister Steven Guilbeault lambasted oil companies last week for making very limited investments in climate action even as massive inflation-driven profits allowed them to fill shareholders’ wallets.

Oil giant Cenovus reported third-quarter profits of $1.6 billion on Friday, up 192% from the same quarter a year ago.

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The company also paid out $659 million to shareholders through share buybacks during the quarter.

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The budget should be balanced by 2027, said Finance Minister Chrystia Freeland.

Trevor Tombe, an economics professor at the University of Calgary, told 630CHED’s Shaye Ganam that the rising cost of everyday items means the government can collect more tax revenue.

“Interestingly, high oil prices and inflation in general are actually a net positive for the government’s budget, adding about $30 billion to their overall balance,” he said.

LISTEN: Trevor Tombe, professor of economics at the University of Calgary, with Shaye Ganam

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Tombe said corporate income tax revenue has also increased significantly this year.

“They’re projecting corporate income tax to be about $23 billion higher than they previously projected, which really puts us at a level we haven’t seen in the end of years. 1960, when the corporate income tax rate was considerably higher than it is today. ”

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Conservatives and NDP slam government’s ‘disconnected’ fall economic statement

There were good and bad things to note in the update, according to Edmonton Griesbach MP Blake Desjarlais.

He said he and New Democrats were happy to see mentions of expanding Canada’s basic health care system to include dental care.

“One thing that was particularly important for me to hear was the work related to removing interest on student loans,” Desjarlais said.

“One of my first questions in the House of Commons was: 9 first stage of their life?

However, he was disappointed with the lack of support for seniors in the update.

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Interest Relief on Student Loans and More: What’s New in the Fall Economic Statement?

Edmonton Center MP Randy Boissonnault said the smaller deficit shows the country is prepared for an uncertain economic future.

“If you have any fiscal hawks listening, I think they’re going to see the fact that the deficit is $20 billion lower, which means we’re serious about making sure we have fiscal firepower for everything. what the world throws at us,” he said.

“Our balance in this fall economic statement was between getting support for those who need it most when they need it most, making sure the economy can be competitive, but also making sure that we have a track record of the country that is going to enable us to deal with whatever the world is going to throw at us in the next six to 12 months.

Click to play video: Federal government warns Canadians of more economic challenges ahead”” width=”640″ height=”360″ src=”https://i1.wp.com/media.globalnews.ca/videostatic/news/cpyrm1yiir-tiqnahhdf9/WEB_MN_STEPHEN_BROWN_NOV_4TH.jpg?w=1040&quality=70&strip=all” loading=”lazy” srcset=”” sizes=”” data-sizes=”(min-width: 1040px) 1040px,(min-width: 720px) 720px,450px”/>

Federal government warns Canadians of more economic challenges ahead

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