If the province took the $28.1 billion it expects to collect this year in non-renewable resource revenue and distributed it evenly to all Albertans, that would work out to about $6,200 per person. Which makes the recent turnaround all the more remarkable. Oil prices stayed depressed and then the COVID-19 pandemic hit the economy even harder. The UCP government elected in 2019 under premier Jason Kenney didn't fare much better, at first. The NDP government's single term in power was marked by one of the lowest periods of non-renewable resource revenue in the province's history. Over the next four years, oil prices stayed low - and so did government revenues. Voters rejected Prentice's vision and handed him a stunning defeat, marking the end of a 43-year Progressive Conservative dynasty and, ultimately, the end of the political party, itself.Īlberta had a brand new NDP government, which now faced those same fiscal challenges. His response was a budget replete with spending cuts and tax increases, followed by a general election. He repeatedly warned that the oil-price crash would punch a "$7-billion hole" in the province's finances. Prentice tried to steel Albertans for the tough times ahead. Budget deficits and a wider recession loomed large. Then-premier Jim Prentice uttered the phrase in an off-the-cuff remark on the CBC radio call-in show The topic was the dire financial situation the province was facing at the time.Ī global downturn in oil prices was hitting the province hard. Remember the infamous "look in mirror" comment? ![]() Think back, way back, all the way to 2015. Today's gushing spigot of cash stands in especially stark contrast to the recent past. The recent surge in royalties is due to a confluence of three main factors: high oil prices, record amounts of oil production, and the maturation of several large oilsands projects, which means they are required to pay a higher royalty rate. In terms of real revenue, the current fiscal year towers above all others - even 2005/06, the boom year in which the provincial government handed out "prosperity cheques" (also known as "Ralph Bucks," named after then-premier Ralph Klein) to every Albertan. "The change in our budget balance - from a pretty large deficit, to a modest surplus, to now a large surplus - is the largest swing in provincial budget balances in Canadian history." "We've never seen that kind of a massive swing before," said Tombe. What actually happened blew those expectations out of the water: the province raked in an eye-popping $16.2 billion over the ensuing 12 months. ![]() When the government released its 2021-22 budget, it expected just $2.9 billion in non-renewable resource revenue for the fiscal year. Two years ago, Alberta's finances were looking very, very different. To help make sense of just how much money the province is now working with - and how quickly its fortunes have turned around - here are five key things to understand about the current royalty ride. With a new provincial budget due out Tuesday, a key question will be: What to do with all this extra cash? The bidders and CoC agreed to hold the auction, which took place on Wednesday.PODCAST SERIES Building a budget: West of Centre looks ahead to Tuesday's budget in Alberta The lenders had asked the bidders to revise the bid price else the companies will go in for liquidation. Last week, the committee of creditors had called for the e-auction for Reliance Capital after they found that the initial bids were below the liquidation value. This would mean that the required bids should be ₹7,500 crore, ₹8,500 crore, ₹9,000 crore, and ₹9,250 crore, respectively. ![]() In the third and fourth rounds, the amount has to go up by ₹500 crore and ₹250 crore, respectively. In a letter to the administrator on Monday, Cosmea explained that the revised bid was ₹1,500 crore higher than the net present value offered by them.Īccording to the new rules, in the first and second rounds, bidders will have to increase the bid value by a minimum of ₹1,000 crore each. The Cosmea-Piramal consortium had bid for the company and its subsidiaries with Piramal group’s liability limited to Reliance General Insurance. E-auction rules allow only bidders who bid for the entire company to participate. The initial bidding round saw Torrent offer ₹4,500 crore and Hinduja offer ₹3,050 crore.Ĭosmea Financial pulled out of the resolution process on Tuesday, citing higher-than-expected base bid of ₹6,500 crore.Ĭosmea's move made it difficult for Piramal Enterprises to participate in the auction, since it was bidding only for one Reliance Capital entity. “The committee of creditors will need to study the final details of the resolution plan including the cash component being offered by Torrent and Hinduja before finalizing the winning bid," said one of the officials.
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