Alberta is still in the red, but the economy is growing according to the second quarter fiscal update released today (November 28).

Finance Minister Joe Ceci said that despite a $10.3 billion deficit, the provincial economy is forecasted to grow by 4 percent.

Ceci highlighted a number of factors that helped lead to that statistic including the creation of 70,000 new jobs in the private sector in the last year and a half.

However, many asked questions regarding the road ahead and a new hiring freeze for government workers. Ceci reiterated time and time again that these tougher restrictions will not affect frontline workers such as Teachers and Health Care employees.

"Our plan to balance is to carefully reduce spending while protecting core services and we're doing just that. We're on track to find 400 million dollars in savings this year without firing thousands of teachers and nurses."

One of the other issues that Ceci was asked about is the future of Public Employees, with many contracts still needing to be renegotiated such as the HSAA, Alberta Nurses and the AUPE. Ceci hopes that these unions will value job stability over increases to salaries.

"That's what my hope is, is that we'll be at the table and that people will see the benefit of long term job stability. The fact that there are no raises, they'll have their ongoing jobs. That's what I hope will occur in negotiations throughout other contracts."

Ceci used the example of the Alberta Teachers Association, who agreed to no raises for the next two years in their last contract negotiation in the spring.

Above all that, Ceci said their plan to balance the budget by 2023 is on track and he expects the deficit to drop to $9 billion by the next fiscal year.

Many in the opposition criticized the fiscal update, saying it doesn't paint the whole picture.

UCP Leader Jason Kenney said the government still does not have a concrete plan to help eliminate their massive deficit and have only made business and income tax rates higher.

Liberal Leader David Khan said the government's massive deficit is still troubling and that Ceci barely touched on the fact that the unemployment rate sits at 8 percent.

The Alberta Party said the NDP failed to take into account that they actually overspent their 2017-2018 budget in its first six months by $248 million.

 

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