Ottawa Needs Alberta More Than Alberta Needs Ottawa

Alberta keeps federal finances afloat, according to a new study:

  • In a 2017 study, we measured Alberta’s net contribution to Canada’s economy during the most recent economic boom in the province. We showed that when it comes to overall economic growth, job creation, or business investment, Alberta made a substantial contribution to the health of the Canadian economy from 2004 to 2014.

  • Since 2014, Alberta has struggled and much has changed. However, Alberta continues to punch well above its weight in at least one critically important respect—its net contribution to federal government finances.

  • Even through the recent recession and uneven recovery, Alberta has remained, by far, the largest net contributor to federal finances.

  • Alberta’s net contribution to Confederation peaked in 2014 at $27.6 billion. Since then, due to economic weakness in the province, its net contribution shrunk somewhat, but was still $20.5 billion in 2017. In total, from 2014 to 2017, Alberta’s net contribution to Confederation ex-ceeded $92 billion.

  • Alberta’s large contribution has helped stabilize federal finances and prevent the federal government from running even larger deficits. In 2017, for example, in the absence of Alberta’s net contribution and if all else had remained equal, Canada’s deficit would have been over $39 billion—more than twice the $19 billion that was in fact the case.

  • Alberta’s economic health is a matter of national importance and its struggles in recent years have implications for all Canadians. In short, Canada cannot reach its full economic and fiscal potential unless Alberta is able to do the same.

— Continue reading the full study — 

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