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UCP government borrowed $30B in debt in under 2 years

The UCP have borrowed nearly $18 billion a year, 20% more than the NDP borrowed.

Last week, the provincial government updated their Term Debt Issues document, which lists all the term debt they still have outstanding.

It’s been 2 months since I last wrote about the Alberta government’s term debt, so I thought I’d write this brief update.

During that time, the UCP government traded 3 more term debts:

# of debtsTotal debt
December2$789.65 million
January1$800.00 million
Total5$1.6 billion

One of the new debts will mature in 2030, and the other two mature in 2050.

The interest rates on these 5 debts range from 2.05% to 3.1%.

However, the effective cost of debt (or the interest rate after tax deductions) is 2.701% for the debt from this month (last week, actually), 2.070% for last month’s debt maturing in 2030, and 1.644% for last month’s debt that matures in 2030.

This new $1.6 billion brings the total term debt traded by the provincial government since the UCP were elected to $29.96 billion, spread out over 62 transactions.

The total amount of term debt owned by Alberta government is about $93.2 billion, a third of which has been issued since the UCP were elected a little over a year and a half ago. About 53% of it was issued during the NDP administration.

Keep in mind, however, that it took the NDP 4 years to rack up $49.72 billion in debt. The UCP have accumulated nearly $30 billion in less than 2 years. That gives the NDP an average of $12.43 billion a year, and the UCP an average of $14.98 billion a year. And that’s assuming a generous 2 full years for the UCP. If we calculate based on only the 20 months they’ve been in power, then that number changes to $17.98 billion, which is 20% more than the annual average of the NDP.

At this rate, the UCP will have borrowed a total of $71.91 billion during their 4-year term, which will be 44% more than the NDP borrowed during their 4-year term.

By the 2023 election, provincial debt could total as much as $134.97 billion, and the UCP portion would make up 53% of it, assuming they keep borrowing at this rate. That’s including subtracting the two debts that mature before then.

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By Kim Siever

Kim Siever is an independent journalist based in Lethbridge, Alberta. He writes daily news stories, focusing on municipal, provincial, and federal politics, specializing in investigative journalism and critical analysis from a leftist political lens. He also writes regular editorials on general politics and social issues.

7 replies on “UCP government borrowed $30B in debt in under 2 years”

At this rate, the UCP will borrowed a total of $71.91 billion during their 4-year term, which will be 44% more than the NDP borrowed during their 4-year term.

Will have borrowed. I know, I know, everyone’s a critic.

 And that’s assuming a generous 2 full years for the UCP. If we calculate based on only the 20 months they’ve been in power, then that number changes to $17.98 billion, which is 20% the annual average of the NDP.

Should be “20% more than”

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