Balancing the budget a hot topic at annual PC convention

The annual Progressive Conservative convention has wrapped up. For the past two days, delegates have been taking part in sessions in Calgary.

A number of issues were discussed, with the budget being a hot topic.

While Premier Alison Redford maintains she will balance the budget by next year, she hinted at borrowing funds for infrastructure plans.

"We've also said that we would have a long-term, transparent infrastructure plan. Minister Horner has made it very clear that we need to fully finance that plan. I think that's really what Albertans have asked us to do," said Redford.

The first example of that came when the province fast tracked the twinning of Highway 63 by going to the capital markets.

"Most people don't buy their house for cash. They make sure that it's amortized over a period of time, that is the value of the house. That's what we're going to look at," said Finance Minister Doug Horner.

He says the province is looking at all options in order to fund projects like schools, hospitals and roads. That decision isn't sitting well with everyone.

"If you put the question 'Do you think we should go to capital markets to build schools for children?' Most people are going to say yes, build schools for children. If you say 'Do you think we should go into debt to get a year ahead on capital plan?' The answer might be pretty radically different," said Derek Fildebrandt with the Canadian Taxpayers Federation.

Alberta is the only debt free province in Canada. In the last 10 years revenue has doubled from $20 billion to more than $40 billion. But, some studies say Alberta has an infrastructure deficit, because the population is growing faster here than anywhere else in Canada, and schools and hospitals are needed to keep up with the growth.

The province is expected to deliver its second-quarter fiscal update near the end of the month. The first-quarter update showed the government on track to post a higher than expected deficit of up to $3 billion, mostly due to lower than expected energy revenues.

With files from Vassy Kapelos.