Subhead:It is true that some capital expenditures would be required if Alberta were to become independent, but operational costs would come from what the province no longer would be transferring outward in federal taxes, however.#
At a Calgary press conference about improving surgical access, Premier Danielle Smith fielded a question about the costs of provincial independence with some figures that could be considered misleading or exaggerated.
Much of the $400 billion in costs the premier referenced would not be new expenditures. They would be assumptions of obligations the province already has.
For example, Smith began by stating an independent Alberta would likely be saddled with $170 billion of the national debt along with the interest payments to service it.
This may be true, but the statement neglects to point out Alberta is on the hook for that debt already in being part of the federation. It wouldn’t be a new liability. It would just be broken away from the larger, national one.
The premier mentioned Alberta having to spend $25 billion per year to meet NATO obligations. That is making the assumption that an independent Alberta would be a NATO member and would commit to the 5% of GDP in military spending.
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