August 24, 2018
Statement from Minister Fielding on the Report of the Auditor General of Manitoba on Public Accounts and Other Financial Statement Audits
We thank the Office of the Auditor General for their work on this report, which reaffirms the government’s responsible approach to financial management and prudent budget forecasting over the past two years.
The report outlines the importance of managing the risks associated with consecutive deficits and increasing debt levels. It notes action has been taken by the current government in response to the office’s report of March 2014 that profiled the previous government’s missed fiscal targets and significant growth in deficits and debt.
As we continue to fix the province’s finances, our Fiscal Responsibility Strategy in Budget 2018 confirms the government’s focus on summary accounting – a “whole of government” reporting approach for Manitoba’s public services. This comprehensive approach is consistent with the way most Manitobans and credit rating agencies assess governments’ fiscal performance and ensures that public services are consistently and properly managed.
The Auditor General agrees the Manitoba government should maintain its focus on the bottom line and assess financial performance through the consolidated summary financial statements. He acknowledges the focus on a single budgeting and reporting framework improves transparency and helps ensure programs are consistently and properly managed.
Year over year, the previous government exceeded its deficit projections with reckless overspending, resulting in ever-increasing debt and higher taxes. The province’s deficit was projected to climb to $1.7 billion by 2019 if left unaddressed and debt-servicing costs continued to grow.
Since forming government over two years ago, we have consistently hit our targets and reduced the deficit in consecutive fiscal years. We have implemented better budgetary practices and are putting Manitoba back on a path to sustainability.
As we work towards balancing the budget in our second term, we continue to take action to reduce the deficit in a measured and responsible way because we understand that fiscal sustainability is essential to protecting the services Manitobans value and rely on.
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