May 31, 2016
Budget 2016 Works Toward Correcting Manitoba's Fiscal Course
– – –Responsible Approach Protects Front-Line Workers, Eliminates Wasteful Spending: Friesen
Budget 2016 delivers upon the commitments made by Manitoba’s new government to protect front-line services while eliminating wasteful government spending and putting Manitoba back on a responsible fiscal track, Finance Minister Cameron Friesen announced today.
“A stronger economy is the best pathway to better services for Manitobans,” said Friesen. “Just six weeks ago, Manitobans elected a new government with a strong commitment to charting a better, safer course. We have been asked to address the challenges facing our province with a careful approach based on the principals of trust, compassion and common sense.”
Manitoba’s new government recognizes the need for a plan to return the province to fiscal balance to avoid further downgrades to the province’s credit rating, which would have devastating consequences to Manitoba’s already-fragile bottom line, the minister said. Budget 2016 pursues measures which will responsibly restore Manitoba to fiscal balance in eight years, while engaging the innovative ideas and entrepreneurial spirit of Manitoba’s best and brightest.
In recognition of the harmful effect of high rates of taxation on the province’s ability to compete for investments that create jobs and pay for front-line services, Budget 2016 includes no new taxes or tax increases and will not draw from the Fiscal Stabilization Fund.
The minister noted the budget includes:
- indexing of the basic personal exemption as of Jan. 1, 2017;
- indexing of income tax brackets to the rate of inflation; and
- continued education tax relief for Manitoba seniors through the Seniors’ School Tax Rebate.
Manitoba’s new government is committed to making Manitoba the most improved province in Canada, Friesen said. Budget 2016 focuses on investments in programs and initiatives most important to supporting Manitoba families: improving front-line services in health care and education, and partnering with business and community leaders to create innovative economic opportunities and better jobs.
Friesen noted Budget 2016 provides for:
- a $220-million (3.8 per cent) increase in funding for health care over the current core government 2015-16 forecast to support ACCESS centres, health-care centres and hospitals in Winnipeg and rural Manitoba, the provincial oncology drug program and other important health-care services;
- a $37-million (1.4 per cent) increase in funding for education and training over the current core government 2015-16 forecast including a 2.55 per cent increase in funding for schools to support initiatives in early years reading, new schools, resources for at-risk and Indigenous students, the full implementation of the masters of social worker – Indigenous knowledge program at the University of Manitoba, and operating increases of 2.5 per cent for universities and two per cent for colleges;
- increased provincial contribution to new construction, improvement and maintenance costs through the Manitoba Housing and Renewal Corporation; support for early learning and child care; increased resources for the victims of crime; and additional resources to provide supports for Syrian refugees; and
- $1.8 billion for strategic infrastructure funding for roads and bridges, flood protection, hospitals, schools, universities and colleges, as well as municipal infrastructure, and the tools necessary for the creation of a single access point for municipal programming within the provincial government.
“We have set a target of achieving balance within eight years by pursuing measures that will responsibly address the unsustainable trajectory of spending increaseswhile ensuring the protection of front-line services for all Manitobans,” Friesen said.
Budget 2016 reduces Manitoba’s core deficit by $122 million, a 12 per cent improvement over the 2015-16 forecast. It will keep the new government’s promise to conduct a value-for-money review as well as a review into government tendering that look within government for further savings.
The minister said it cannot be overstated the challenges facing Manitoba are significant and in order to allow the timenecessarytocarefully correctManitoba’s fiscalcourse, balanced budget legislation will be suspended. This will be accomplished by repealing the current Balanced Budget, Fiscal Management and Taxpayer Accountability Act and replacing itin Budget 2017with proposed legislation that would provide Manitoba taxpayers with enforceable protection includingthe restoration oftheir right to vote on major tax increases.
“Our government will introduce new legislation that would protect taxpayers with a clear, focused plan for deficit reduction, enforceable penalties for non-compliance by elected officials and a commitment to restoring the right to vote on major tax increases,” added Friesen. “Manitobans are not afraid of hard work and neither is their new government. Together, we will build a better, stronger, more prosperous Manitoba.”
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