2020 Alberta Budget
March 05, 2020
CIAC was invited to participate in the Budget Lockup in advance of the Finance Minister presenting the 2020 Alberta Budget. The government has pivoted to a strategy of getting Albertans back to work. The goal is to not simply maintain a path to fiscal balance, but also focus on kick-starting economic growth due to a stagnant economy in 2019.
The 2020 Alberta Budget is comprehensive and includes many aspects that will affect the chemistry sector and Albertans as a whole. On the outset, the deficit is projected to be $1.2 billion lower than projected in the 2019 Budget.
For 2020, there is a continued focus on eliminating the deficit by 2022 with a modest 3 per cent reduction in operational spending. The government is focused on what they can control: creating an attractive business environment and modest restraint in spending. Deficit elimination remains largely dependent on tax and royalty revenue growth in future years.
- 2019/20 $7.5 billion forecast deficit
- 2020/21 $6.8 billion targeted deficit
- 2021/22 $2.7 billion targeted deficit
- 2022/23 $700 million targeted surplus
Key Budget Elements Affecting Chemistry in Alberta
- Alberta now has a 10 per cent corporate tax rate, down 12 per cent since the government took office in May 2019. This is the lowest rate in Canada and, when they reach 8 per cent in 2022, will be one of the lowest in North America.
- Modernizing Alberta’s regulatory environment to reduce the burden on job creators.
- The government intends to highlight Alberta’s best-in-class environmental, social, and governance credentials. There is an opportunity for the chemistry industry to highlight Responsible Care in the value-added chemical manufacturing sector.
- Alberta will focus on investments and exports, and promoting the province globally to attract more business investment to Alberta
- Highlighting significant growth potential of downstream value-added petrochemical manufacturing with a continued commitment to Petrochemicals Diversification Program to build off low-cost feedstocks, talented workforce, and essential infrastructure.
- Development of an Investment and Growth Strategy focused on areas of comparative economic advantage in resource-based industries supported by $75 million over three years.
- While yet to be finalized, the establishment of a quasi-government agency to lead investment attraction in key global financial centres.
- Blueprint for Jobs – Focus on Skills Training
- Expanding skilled trades remains a focus.
- Specific focus on new tools and program supports to increase Class 1 drivers.
CIAC will seize opportunities by:
- Supporting and pursuing regional, national, and international investment in the petrochemical sector to catalyze new construction and long-term, high-paying jobs for Albertans.
- Securing additional investment in Alberta’s petrochemical and value-added sectors, including through maintenance of the Petrochemicals Diversification Program. Petrochemicals represent a significant growth opportunity for Alberta.