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Alberta May Qualify for Federal Cash Injection From Little-known Program

Jan 28, 2016 | 2:34 PM

The Liberal government is eyeing a little-known federal program as it searches for ways to help Alberta cope with the financial squeeze of sinking commodity prices.

The Alberta government is bracing for a steep fall in revenues caused by sliding resource prices, which could result in the province qualifying for cash relief from Ottawa through the so-called fiscal stabilization program.

Provinces can make claims under the program when their revenues tumble by more than five per cent from one year to the next.

But the maximum Alberta can claim under the program is $250 million, under a payout cap imposed in the late 1980s.

A senior government source says a fiscal-stabilization payment is just one of several possibilities Ottawa is exploring as it hunts for ways to ease Alberta’s economic pain.

Sources say the Liberal government has instructed bureaucrats across many departments to come up with “innovative ideas” to help the Alberta economy as the federal budget is drawn up.

The budget is expected to be unveiled in March.