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RedDeerGuy1's avatar

What is to stop a country from racking up debt again after its paid off?

Asked by RedDeerGuy1 (24987points) June 29th, 2021

In Alberta 25 years ago we paid off all of our debt by squeezing the citizens, and they passed a law banning ever going into debt again.

Two years ago the majority UCP (United Conservative party) provincal government just removed or ignored the law and racked up $10—$100 billion of debt.

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3 Answers

zenvelo's avatar

First of all, Alberta is not a country.
And $10 billion to $100 billion is quite a range; which is it?

The provincial government has taxing authority, so the debt . Your post does not cite any news about how the debt will be paid, or what it is used for.

RedDeerGuy1's avatar

As of 2019 Alberta’s debt was $85.9 billions dollars. The rest of your questions I do not know. Might have been low oil and natural gas revenues.

Does any jurisdiction have a no debt amendment to their constitution other than Edmonton Alberta Canada. Edmonton has a law banning debt.

zenvelo's avatar

Almost all jurisdictions have a balanced budget requirement, but that includes borrowing money to pay for things. That is what bonds are for.

Here are some facts on Edmonton’s borrowing
https://www.gov.edmonton.ab.ca/city_government/documents/PDF/Debt_Fact_shee_(1).pdf

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