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With the federal election out of the way, the next exciting event is the first NDP budget in Alberta, slated for October 27th. Whatever the political stripe, this tough budget is not easy one to deliver with a massive deficit expected at a time when the economy is sinking.

What should be Alberta’s fiscal priorities in this budget? Three major ‎problems face the province.

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First, the employment picture is far from healthy. From September 2014 to September 2015, the province lost jobs in the private sector. While total employment has risen by about 30,000, once taking out public administration, health, social assistance and education services, private sector employment declined by‎ roughly 10,000 jobs. Particularly hard hit are the resource sectors (9 per cent decline), manufacturing (7 per cent decline), and professional, scientific and technical (6 per cent decline). Further layoffs are on the way as many oil and gas companies whose hedges protecting their profits are coming off, potentially resulting in consolidation. The public sector with growing employment cannot be sustained if the private sector growth is declining. The Alberta budget should not aggravate the problems further as already done with tax hikes, royalty reviews and other policies that are raising business costs.