24°c Partly cloudy
18°c Cloudy periods
Winnipeg Free Press - PRINT EDITION
A balancing act
Stan Struthers
It's an economic game plan that counts on ordinary Manitobans to pay more to get their nails done, drive their cars and insure their homes in order to slay the provincial deficit by 2014.
It's a budget that banks on a handful of tax and fee increases to raise another $200 million in revenue.
At the same time, Stan Struthers' first budget as finance minister tightens the provincial purse-strings except for key front-line services such as health, education and family services.
"We understand that if we're going to get back into balance in 2014, then we need to bend that expenditure curve downward," Struthers said. "It needs to come down to the level that where revenues are and we need to work on bringing revenues up."
FILL 'ER UP
The provincial take on gas taxes has been frozen at 11.5 cents a litre for 20 years. By bringing it up to 14 cents on May 1 -- and adding a three-cent tax on purple (farm) gas for the first time -- that will add $50 million in new revenue.
Struthers said money will go to fixing flood-damaged bridges and roads and, in the longer term, be dedicated to upgrading the province's other roads and highways.
"Every penny of this new revenue will be put back into infrastructure, guaranteed by law," he said.
Plus, on renewal of their vehicle registration, Manitobans will pay $35 more to keep their cars, trucks and trailers on the road, likely by July 1.
The new money from this, estimated to be about $16 million a year, will also go toward infrastructure, Struthers said.
Having paid more to gas up your car and license it, the hit to your bottom line won't stop when you get to the spa or the tattoo parlour.
In other words, this budget broadens the provincial sales-tax net. So that trip to the spa, fancy manicure or haircuts that cost more than $50 or tattoos and body piercings will all be subject to the seven per cent provincial sales tax.
The PST will also be added to prescribed insurance premiums, such as property insurance, group life insurance, trip cancellation insurance, baggage insurance and land-titles insurance.
The government estimates broadening the PST will raise more than $106.5 million.
"These measures will help ensure the long-term sustainability of the services Manitobans value most,'' Struthers said in his budget speech.
But Progressive Conservative Leader Hugh McFadyen said the increased tax load on Manitobans is unfair.
"When they're increasing taxes by $184 million on Manitoba families and still running a deficit of roughly $500 million, you know you've got a severe problem," he said.
GOVERNMENT FEES GOING UP -- AND SO ARE FOR SALE SIGNS ON GOVERNMENT ASSETS
They aren't huge increases, but they all add up. So child-abuse registry checks jump to $15 from $10, which will add $203,000 to provincial coffers. Certified copies of land-titles instruments are going up, depending on the document, to raise $3.5 million. Even births, marriages and deaths will cost more -- at least the certificates from the province for each of those key life-and-death moments. They jump to $30 from $25 to flow an estimated $400,000 more to the province.
At the same time, Struthers hopes to cash in by selling $75 million worth of unspecified government buildings.
"We have a number of government buildings at the end of their lifetime," Struthers said. "It makes sense to me to see if somebody out there can put those buildings to use and help us in terms of meeting some of our targets."
The province could also sell off some of its land.
Republished from the Winnipeg Free Press print edition April 18, 2012 A1
History
Updated on Wednesday, April 18, 2012 at 8:05 AM CDT: Adds video
More Local
- Back to Top
- Return to Local
More Local
(1 of 31 articles for today)
MP Glover files new version of disputed 2011 election expenses
3:56 PM 0View Related
Poll
Most Popular Local
- Court told driver hysterical after vehicle fatally hit highway worker
- Basic arithmetic back in class
- Child in critical condition after West End crash
- Province blows off wind megawatt goal
- City-wide average mosquito count drops
- Winnipeg man given 2-year sentence for coma-inducing 'sucker punch'
- Mountie hospitalized, dog euthanized after crash near Saskatoon
- Known as kind, outgoing men
- Committee wants report on free replacement for garbage, recycling carts
- Poolside feeding prompts eviction
- Safeway stores likely to close
- Squirrel crawls out of Winnipegger's toilet
- Poolside feeding prompts eviction
- Stoppage of play off the field
- Game-day planning a must
- Court told driver hysterical after vehicle fatally hit highway worker
- No mad dash for concessions
- Kenyan wins Manitoba Marathon
- Traffic heavy as Bomber fans flock to U of M
- St. Norbert's hopping
- Father blasts 'horrific' movie
- Safeway stores likely to close
- Man dies after being pulled from vehicle submerged in Winnipeg retention pond
- Flood money paid for CEO's romantic trip
- Car in deadly crash stolen?
- UPDATE: Now with FAQ: Keeping the e-party going without the party-crashers
- Squirrel crawls out of Winnipegger's toilet
- Daycare provider charged with abandonment
- Poolside feeding prompts eviction
- Two people killed in crash north of Winnipeg
- Basic arithmetic back in class
- Province blows off wind megawatt goal
- At 55, I'm wise to what's real in life
- Court told driver hysterical after vehicle fatally hit highway worker
- Strong may they run: Manitobans reflect on that fateful day in Boston
- City-wide average mosquito count drops
- Mountie hospitalized, dog euthanized after crash near Saskatoon
- Killer 'should stay in prison'
- Known as kind, outgoing men
- Winnipeg man given 2-year sentence for coma-inducing 'sucker punch'
- Basic arithmetic back in class
- Squirrel crawls out of Winnipegger's toilet
- Safeway stores likely to close
- Doctors blamed for death
- App could give Winnipeggers chance to report bad parking, get paid
- $110-K worth of nickel plates stolen from Thompson mine
- A day in the life of 13,380 Manitoba Marathon participants
- Stoppage of play off the field
- Bomber fans wowed by new stadium
- Strong may they run: Manitobans reflect on that fateful day in Boston
- Basic arithmetic back in class
- Squirrel crawls out of Winnipegger's toilet
- Developers to unveil plans for bold downtown tower
- Father blasts 'horrific' movie
- Teachers support adding sexual-orientation themes to all curricula
- The crime fighter's revolution
- Safeway stores likely to close
- Car in deadly crash stolen?
- Fishing for fashion
- City's first urban reserve born
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
Have Your Say
Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?
Login SubscribeHave Your Say
Comments are open to Winnipeg Free Press Subscribers only. why?
SubscribeThe Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.