Joe Ceci promises 'shock absorber' budget for Alberta

Alberta Finance Minister Joe Ceci says next week's provincial budget willbe "a shock absorber in these tough economic times,"as the province faces a $10 billion deficit in the wake of plunging oil prices.

The NDP government plans to "constrain spending without compromising programs" in its 2016 budget,Cecitold an audience at the Canadian Club of Calgary.

"Our goal is to hold budgetary increases to below population growth plus inflation levels," he said, less than a week before Thursday's budget announcement.

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"We are bending the curve on the health budget, which has been expanding unsustainablyby more than six per cent per year previously," he said, but promised no "knee-jerk" cuts to hospital and schools.

As oil prices plummeted 70 per cent in the last 18 months, Ceci noted that the province's royalty revenues fell from $8.9 billion in 2014-15 to only $2.5 billion this fiscal year.

Ceci said the government has begun a five-year $34.5 billionplan to build much-needed infrastructure and put Albertans back to work.

He repeated his promise that there would be no new taxes for Alberta, including no PST, HST or sales tax.

He said the government would continue to look for savings, for instance by freezing management salaries at agencies like Alberta Health Services, Alberta Gaming and Liquor Commission and Alberta Energy Regulator.

His comments came a day after Premier Rachel Notley delivered a 15minute televised address to Albertans, in which she acknowledged next Thursday's budget will feature a deficit in excess of $10 billion.

Notley said the NDP budget will include a jobs plan, a massive infrastructure program, and details on a new Alberta Child Benefit aimed at helping thousands of low-income families.

Despite the hardships many are facing, Ceci says there is a lot to be optimistic about in Alberta.And he says Albertans will come through the downturn stronger than ever.