Alberta’s NDP Borrowed 2.4 Times As Much Money In Their Last 3 Years Compared to the PC’s

Published by Ian Matthews on

Jason Kenny UCP vs Rachel Notely NDP Alberta SpendingSince the Alberta election call this week, there has been much talk of spending problems in both the Alberta Progressive Conservative Party (PC, now the United Conservative Party UCP) and the Alberta New Democratic Party (NDP). To make an apples to apples comparison, we made four assumptions:

  1. the first year of any government is really the financial responsibility of the previous government, so we ‘charged’ :
    1. the PC’s with March 2013 through March 2016
    2. the NDP with March 2016 through March 2019
  2. we assumed that currency exchange rates are what they are on today’s date
  3. all debt is payable at the end of the term
    1. this is not accurate as most government bonds have a “coupons” which means interest payments are paid annually
    2. we did this to compare apples to apples
  4. a 3% interest rate for all floating rates

Given those four assumptions we analysed the Province of Alberta’s own published debt numbers and calculated:

  1. Between March 2013 and 2016 Alberta PC’s (now the UCP) borrowed about $20B that will result in total debt (including interest) of about $28B
  2. Between March 2016 and 2019 Alberta NDP’s borrowed about $50B that will result in a total debt (including interest) of about $67B

Factors to Consider Beyond these Numbers:

In fairness to the NDP:

  1. the NDP were in power but had virtually no control over the largest collapse in oil prices and Alberta economic collapse in history
  2. Some of the borrowing under the Alberta NDP tenure was done refinance debt that the previous Alberta PC Government had taken on
  3. Both parties had to deal with and pay for unexpected massive nature disasters.  The PC’s handled the burning of Slave Lake in 2011 and the NDP handled the burning of Fort McMurray in 2016

As an editorial comment we think that all readers should be reminded that it is unlikely the Alberta UCP/PC’s or any other party would not have massively increased debt during this time.  The question is, is 2.4 times as much as the previous already ‘spendy’ PC’s reasonable?

Alberta’s Provincial Debt Numbers So You Can Do Your Own Calculations:

Bond Transaction Informationall Alberta Outstanding Debt as or March 2019
Trade DateTrade Date YearPar Amount in Millions Effective Cost of DebtMaturity DateMaturity YearCurCDN $ Owed in Millions 
25-Oct2005$54.004.43%1-Jun2019CAD$87.49
26-Sep2008$86.434.90%15-Jan2022CAD$145.72
26-Sep2008$86.434.95%15-Jan2023CAD$150.60
26-Sep2008$86.434.97%15-Jan2024CAD$155.16
21-Sep2009$600.004.17%1-Dec2019CAD$850.32
26-Oct2009$32.454.15%2-Nov2019CAD$45.92
24-Nov2009$66.523.88%2-Nov2019CAD$9.23
9-Dec2009$350.004.00%1-Dec2019CAD$489.86
20-Jan2010$600.004.59%1-Dec2040CAD$1,426.20
28-Sep2010$150.003.38%1-Dec2019CAD$195.58
22-Feb2011$100.003.94%1-Mar2021CAD$139.40
13-Apr2011$30.004.35%1-Jun2026CAD$49.58
27-Oct2011$45.003.57%3-Nov2026CAD$69.09
17-Jan2012$100.002.90%19-Jan2024CAD$134.75
27-Feb2012$120.003.03%2-Mar2025CAD$167.26
27-Feb2012$120.003.10%2-Mar2026CAD$172.08
27-Feb2012$40.723.17%2-Mar2027CAD$60.08
18-Jul2012$100.002.98%20-Sep2029CAD$150.60
10-Aug2012$30.003.01%20-Sep2029CAD$45.34
23-Aug2012$720.002.65%15-Dec2022CAD$910.72
7-Sep2012$170.003.05%20-Sep2029CAD$258.23
17-Sep2012$600.002.73%15-Dec2022CAD$763.80
8-Nov2012$125.503.04%20-Sep2029CAD$189.51
30-Nov2012$275.502.14%1-Dec2019CAD$316.09
25-Jan2013$247.773.19%20-Sep2029CAD$374.12
25-Feb2013$196.613.41%1-Mar2033CAD$329.85
12-Mar2013$500.002.77%15-Dec2022CAD$624.47
4-Jun2013$500.003.52%1-Dec2043CAD$1,027.25
10-Jun2013$100.003 mo. CDOR + 0.140%17-Jun2020CAD$121.00
11-Jun2013$65.003 mo. CDOR + 0.140%17-Jun2020CAD$78.65
23-Jul2013$500.003.58%20-Sep2029CAD$786.40
23-Jul2013$325.503.59%20-Sep2029CAD$511.68
6-Sep2013$50.003.99%20-Sep2029CAD$81.92
11-Sep2013$50.004.05%20-Sep2029CAD$82.39
24-Sep2013$500.003.51%1-Dec2023CAD$675.50
28-Oct2013$60.003.91%2-Nov2037CAD$116.23
29-Oct2013$500.003.96%1-Dec2043CAD$1,093.25
5-Nov2013$150.003.80%20-Sep2029CAD$241.29
20-Nov2013$140.003.95%1-Dec2033CAD$250.60
20-Nov2013$325.503.95%1-Dec2033CAD$581.75
4-Dec2013$200.004.04%1-Dec2033CAD$361.56
5-Dec2013$110.004.06%1-Dec2033CAD$199.29
6-Dec2013$215.504.06%1-Dec2033CAD$389.49
10-Dec2013$225.503.95%1-Dec2033CAD$402.52
29-Jan2014$110.003.68%1-Dec2033CAD$186.95
30-Jan2014$140.003.68%1-Dec2033CAD$237.75
12-Feb2014$50.003.20%1-Dec2023CAD$64.40
26-Mar2014$600.003.19%1-Jun2024CAD$791.28
11-Apr2014$500.003.81%1-Dec2043CAD$1,051.87
29-Apr2014$25.003.49%8-May2029CAD$38.09
5-May2014$200.002.09%1-Jun2019CAD$220.93
5-May2014$300.002.09%1-Jun2019CAD$331.39
22-May2014$500.003.70%1-Dec2043CAD$1,035.77
11-Jun2014$1,268.683.49%1-Jun2031CAD$2,019.65
24-Jun2014$50.001.96%1-Jun2019CAD$54.89
25-Jun2014$50.002.68%15-Dec2022CAD$60.71
25-Sep2014$291.143.17%2-Oct2029CAD$429.98
28-Oct2014$25.003.12%3-Nov2029CAD$36.68
14-Jan2015$500.002.45%1-Jun2025CAD$622.65
5-Feb2015$500.002.03%1-Jun2025CAD$601.70
17-Feb2015$200.001.33%1-Jun2020CAD$213.25
17-Feb2015$300.001.33%1-Jun2020CAD$319.87
12-Mar2015$500.002.23%1-Jun2025CAD$611.40
17-Mar2015$500.002.88%1-Dec2043CAD$903.76
26-May2015$29.003.02%1-Nov2035CAD$46.51
4-Jun2015$600.001.56%1-Jun2020CAD$646.86
5-Jun2015$135.503 mo. CDOR + 0.140%17-Jun2020CAD$155.25
5-Jun2015$100.003 mo. CDOR + 0.140%17-Jun2020CAD$115.00
5-Jun2015$80.003 mo. CDOR + 0.140%17-Jun2020CAD$92.00
23-Jul2015$500.002.34%1-Jun2025CAD$616.95
5-Aug2015$200.002.11%1-Jun2024CAD$237.99
19-Aug2015$1,250.501.87%26-Aug2020USD$1,367.06
1-Sep2015$50.001.78%3-Dec2040EUR$109.83
9-Sep2015$108.893.33%1-Dec2046CAD$221.50
9-Sep2015$391.103.33%1-Dec2046CAD$794.95
16-Sep2015$375.501.50%1-Jun2020CAD$403.10
16-Sep2015$125.501.50%1-Jun2020CAD$134.36
9-Oct2015$750.002.59%1-Jun2025CAD$944.02
15-Oct2015$500.001.52%1-Jun2020CAD$537.97
15-Oct2015$250.001.52%1-Jun2020CAD$268.98
15-Oct2015$76.001.90%3-Dec2040EUR$170.26
26-Oct2015$58.002.07%2-Nov2023CAD$67.61
25-Nov2015$500.001.56%1-Jun2020CAD$539.10
1-Dec2015$76.001.83%3-Dec2040EUR$168.30
25-Jan2016$200.002.55%1-Jun2025CAD$245.81
25-Jan2016$300.002.55%1-Jun2025CAD$368.71
29-Jan2016$500.001.89%6-Apr2021USD$731.50
23-Feb2016$500.003.32%1-Dec2046CAD$997.85
15-Mar2016$600.003.38%1-Dec2046CAD$1,207.68
24-May2016$1,000.003.29%1-Dec2046CAD$1,987.90
3-Jun2016$125.503.22%14-Dec2026AUD$156.94
14-Jun2016$762.202.30%1-Jun2026CAD$937.03
14-Jun2016$438.802.30%1-Jun2026CAD$538.60
16-Jun2016$1,900.001.42%1-Sep2021CAD$2,035.18
8-Aug2016$100.002.09%1-Jun2026CAD$120.89
8-Aug2016$400.002.09%1-Jun2026CAD$483.56
8-Aug2016$500.002.09%1-Jun2026CAD$604.45
10-Aug2016$600.002.12%17-Aug2026USD$726.90
10-Aug2016$400.002.12%17-Aug2026USD$484.60
8-Sep2016$600.002.84%1-Dec2046CAD$1,110.84
9-Sep2016$175.501.18%1-Dec2043EUR$350.68
6-Oct2016$95.001.42%1-Sep2021CAD$101.72
6-Oct2016$830.001.42%1-Sep2021CAD$888.72
17-Oct2016$700.003.01%1-Dec2046CAD$1,331.26
19-Oct2016$75.003.12%14-Dec2026AUD$93.36
3-Nov2016$800.002.23%1-Jun2026CAD$978.64
30-Nov2016$300.002.56%1-Jun2026CAD$376.71
30-Nov2016$200.002.56%1-Jun2026CAD$251.14
1-Dec2016$2,250.501.95%6-Dec2019USD$3,184.16
13-Dec2016$165.501.88%1-Dec2043EUR$377.70
13-Dec2016$45.001.95%1-Dec2043EUR$104.32
13-Dec2016$600.003.45%1-Dec2046CAD$1,221.36
27-Jan2017$50.001.91%1-Dec2043EUR$113.78
16-Feb2017$650.001.07%15-Nov2021GBP$1,189.05
28-Feb2017$600.002.61%1-Jun2027CAD$756.66
29-Mar2017$700.003.37%1-Dec2046CAD$1,384.92
24-Apr2017$300.002.50%1-Jun2027CAD$374.94
24-Apr2017$300.002.50%1-Jun2027CAD$374.94
4-May2017$450.001.73%1-Sep2022CAD$488.81
4-May2017$300.001.73%1-Sep2022CAD$325.87
30-May2017$900.003.08%1-Dec2048CAD$1,759.59
7-Jun2017$900.003.01%1-Dec2048CAD$1,739.79
17-Jul2017$500.003.24%1-Dec2048CAD$1,001.73
19-Jul2017$1,500.002.26%26-Jul2022USD$2,231.59
26-Jul2017$350.002.83%1-Jun2027CAD$448.98
26-Jul2017$350.002.83%1-Jun2027CAD$448.98
1-Aug2017$150.000.95%15-Nov2021GBP$273.15
5-Sep2017$600.003.22%1-Dec2048CAD$1,199.10
19-Sep2017$1,200.003.39%1-Dec2048CAD$2,460.70
4-Oct2017$50.003.50%14-Dec2026AUD$64.29
4-Oct2017$250.003.69%11-Apr2028AUD$333.60
26-Oct2017$60.003.17%2-Nov2037CAD$98.01
30-Oct2017$100.002.76%1-Jun2027CAD$127.55
30-Oct2017$300.002.76%1-Jun2027CAD$382.65
30-Oct2017$300.002.76%1-Jun2027CAD$382.65
17-Nov2017$200.003.11%1-Dec2048CAD$392.51
17-Nov2017$300.003.11%1-Dec2048CAD$588.76
7-Dec2017$60.003.21%11-Apr2028AUD$77.05
16-Jan2018$500.003.13%1-Dec2048CAD$969.65
16-Jan2018$200.003.13%1-Dec2048CAD$387.86
17-Jan2018$50.003.45%11-Apr2028AUD$63.82
19-Jan2018$55.003.44%14-Dec2026AUD$66.57
20-Feb2018$200.003.35%14-Dec2026AUD$240.70
8-Mar2018$1,250.503.34%15-Mar2028USD$2,229.48
11-Apr2018$1,500.000.70%18-Apr2025EUR$2,102.92
16-Apr2018$300.003.03%1-Jun2027CAD$381.83
16-Apr2018$300.003.03%1-Jun2027CAD$381.83
20-Apr2018$50.003.39%11-Apr2028AUD$63.52
15-May2018$200.003.35%1-Dec2048CAD$400.82
15-May2018$700.003.35%1-Dec2048CAD$1,402.87
4-Jun2018$900.003.00%1-Dec2028CAD$1,170.18
13-Jul2018$700.003.05%1-Dec2048CAD$1,339.66
14-Aug2018$500.002.72%1-Sep2023CAD$568.00
14-Aug2018$750.002.72%1-Sep2023CAD$852.00
12-Sep2018$500.003.14%1-Jun2050CAD$1,002.56
2-Oct2018$100.003.13%1-Dec2028CAD$131.30
2-Oct2018$300.003.13%1-Dec2028CAD$393.90
2-Oct2018$500.003.13%1-Dec2028CAD$656.50
25-Oct2018$2,050.503.40%1-Nov2023USD$3,206.52
25-Oct2018$200.003.40%1-Nov2023USD$312.83
26-Oct2018$25.003.26%2-Nov2037CAD$40.49
12-Dec2018$500.003.31%1-Jun2050CAD$1,029.28
9-Jan2019$1,250.500.70%16-Jan2026EUR$1,992.34
15-Jan2019$1,750.503.01%23-Jan2024USD$2,691.30
17-Jan2019$325.500.40%7-Feb2029CHF$454.90
22-Jan2019$250.001.55%15-Dec2022GBP$458.99
23-Jan2019$50.003.03%11-Apr2028AUD$60.39
1-Feb2019$400.002.85%1-Dec2028CAD$502.42
1-Feb2019$100.002.85%1-Dec2028CAD$125.60
12-Feb2019$1,100.001.40%20-Feb2029SEK$182.62
12-Feb2019$1,400.001.40%20-Feb2029SEK$232.43
12-Feb2019$500.003.17%1-Jun2050CAD$991.81
19-Feb2019$750.008.05%26-Feb2024ZAR$98.88
20-Feb2019$1,000.002.76%1-Dec2028CAD$1,248.67
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