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The Alberta government is promising billions of dollars worth of infrastructure spending and an immediate cut to the corporate income tax rate as part of an effort to boost the economy.
At an announcement Monday, Premier Jason Kenney said the tax rate would be cut from 10 to eight per cent on July 1. The province will also suspend the vast majority of employees allowed in through the temporary foreign workers program and reduce the number of immigration certificates given out by one-third.
The premier and Finance Minister Travis Toews said more details about specific plans will be released over the next weeks and months, but they estimate $10 billion in infrastructure funding could create 50,000 jobs as the economy struggles due to the COVID-19 pandemic and the spring oil crash.
Kenney said the spending includes money for roads, hospitals, schools, pipelines and water projects.
“This, the largest infrastructure build in Alberta history, and by far the largest in the country on a per-capita basis, represents about a 40 per cent increase over what has initially been budgeted in the province’s a capital plan for this fiscal year,” he said.
There is approximately $7 billion earmarked in the most recent budget. Monday’s announcement represents an additional $3 billion including $600 million for strategic infrastructure projects and $500 million on municipal infrastructure.
