ALBERTA BUDGET SETS TAX INCREASE, LOWER DEFICIT
The Alberta provincial
government will increase its general corporate tax rate on
April 1 to 15 pct from 11 pct under its 1987-88 budget
announced today, provincial treasurer Dick Johnston said.
    The budget forecasts the 1987-88 provincial deficit to be
1.90 billion dlrs, compared to a forecast deficit of 3.30
billion dlrs for fiscal 1987, which ends March 31, Johnston
said.
    The budget forecasts fiscal 1988 revenues of 8.63 billion
dlrs and expenditures of 10.42 billion dlrs, Johnston said.
    The provincial budget raises combined personal and
corporate income taxes by about 20 pct, Johnston said.
    Johnston told a news conference taxes were increased after
revenues from oil and gas taxes fell by 64 pct last year and
are not expected to increase sharply in the short term.
    The provincial government expects resource tax revenues for
fiscal 1987 to fall to 1.30 billion dlrs from a previously
estimated 2.20 billion dlrs, compared to 3.60 billion dlrs
collected in fiscal 1986 before the collapse in oil prices.
    Johnston told reporters he needed to raise taxes in order
to begin moving towards a balanced budget in 1990-91.
    Johnston said the personal income tax increase takes three
forms. The basic provincial tax rate rises to 46.5 pct from
43.5 pct of the basic federal income tax rate.
    The provincial budget also imposed a temporary eight pct
surtax on individuals with taxable income of more than 36,000
dlrs, he said.
    In addition, the government levied a flat one pct surtax on
all individuals with taxable income.
    Johnston said overall government spending of 10.42 billion
dlrs represents a cut of 4.4 pct, but various grants and tax
credits for agriculture and energy industries will remain.
 Reuter
