March 23, 2010
Amendments to Balanced Budget Legislation Required to Carry Out Five-year Economic Plan: Wowchuk
Changes will be proposed to Manitoba’s balanced budget law that would accommodate the five-year economic recovery plan and maintain the requirement for a balanced budget, while avoiding massive cuts to public services and tax increases in the near term, Finance Minister Rosann Wowchuk said today.
“There are two ways to return to balance,” said Wowchuk. “We can raise taxes and cut services and balance the books now or we can introduce an economic plan that protects jobs, maintains our competitiveness and doesn’t undermine the province’s economic recovery. We’ve consulted with Manitobans and we agree that protecting services and jobs is the best approach.”
Wowchuk said, Manitoba’s responsible plan to restore budgetary balance over five years includes legislative changes that would:
· require the budget shortfall to be eliminated over four years with a return to surplus in year five of the plan,
· keep the legal requirement to have balanced budgets in the future,
· exceed the debt payment requirements under the current law,
· retain restrictions that prohibit increases to major taxes without a referendum, and
· reduce ministerial salaries and freeze MLA pay.
“The financial situation will improve,” said Wowchuk. “Manitobans will rise to the challenge. However, we cannot afford to have our hands tied behind our backs while we fight this worldwide economic downturn. Our five-year economic plan provides the framework that supports services that Manitobans rely on most while returning the province to balance and the changes to the legislation are a vital piece of that.”
Wowchuk said the proposed changes to the legislation will be introduced during the current sitting of the legislature.
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