June 9, 2016
Budget 2016 Begins to Correct the Course
– – –Unsustainable Growth in Spending has Created Deficit, Threatens Front-line Services: Premier
Manitoba’s new government today provided further information related to Budget 2016-17’s one per cent reduction in the growth of spending, Premier Brian Pallister said, adding this is another step in the government’s commitment to eliminating wasteful government spending and putting Manitoba back on a responsible fiscal track, while protecting front-line services and the people who provide them.
“Our government has inherited a significant fiscal challenge that threatens Manitoba’s bottom line and the services that Manitobans depend on,” said Pallister. “Our careful approach is slowly correcting the course.”
Preparatory work on Budget 2016-17 was well underway when Manitoba’s new government was elected in April 2016. The premier noted proposed expenditures were $13.665 billion, reflecting a 3.7 per cent increase in spending over the forecast for 2015-16.
All government departments were reviewed to identify their ability to reduce their rate of expenditure growth while protecting front-line services. Pallister said several areas were immediately identified for reduction in the proposed growth in expenditure. He noted these reductions in spending growth reflect a one per cent reduction in the growth of spending across government in Budget 2016-17.
These include the following measures:
- reducing the size of cabinet including associated political or technical staff – $4 million;
- Seniors School Tax Rebate – $44 million;
- reducing discretionary prevention funds (departmental application-based funding created in the March 8 Outlook) – $35 million;
- reducing requested increases to schools and universities (reduced increases to various grant lines and changes in the implementation timing of various programs) – $9 million;
- amortization reductions related to revised forecasts and capital (the result of projects not proceeding as quickly as estimated in 2015-16 and a reduced level of capital spending approved for 2016-17 to allow for return on investment implementation within strategic infrastructure investment) – $11 million; and
- Building Manitoba Fund reductions due to PST decreases (result of legislated requirement to appropriate one-seventh of forecast PST revenues in a fiscal year, a decreased projection of PST revenue from March 8 Outlook) – $5 million.
Departments will be coming forward through the normal Treasury Board process to identify other specific proposals for expenditure growth reduction.
“Our government will ensure that targets identified through this process are met, using a careful approach based on the principals of trust, compassion and common sense,” said Pallister. “We are consulting Manitobans in this important work through a sustainable health-care review, a red-tape reduction task force and a value-for-money review.”
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