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Manitoba budget: steady as she goes

By: Bruce Owen

25/03/2009 2:59 PM | Comments: 17

Finance Minister Greg Selinger speaks to media Wednesday.

MIKE APORIUS / WINNIPEG FREE PRESS Enlarge Image

Finance Minister Greg Selinger speaks to media Wednesday.

The Doer government is sticking to its steady-as-she-goes approach to running the province’s economy, delivering another surplus budget -- and one with plenty of stimulus to protect Manitoba from the global recession.

The big news in today’s budget is that Premier Gary Doer will reduce his NDP government’s debt payments to only $20 million this year compared to $110 million to last year.

It will also pull $110 million out of the rainy-day fund to ensure there’s enough money in the system for core health care and education services. The province has already pulled $98 million out of the fund – it was $818 million – in part to fast-track stimulus funding to the City of Winnipeg.

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"We must be realistic about the challenges that lie ahead," Finance Minister Greg Selinger said in his budget speech. "Experts predict the economy will continue to be volatile over the next 12 to 24 months. To deal with this, we have developed a plan to create and maintain jobs and critical services.

"We have made some difficult decisions, but we have been balanced in those decisions."

 

The 2009-10 budget will see a 4.4-per-cent increase in core spending from last year’s budget, an increase Selinger said is possible because Manitoba’s economy is relatively stable compared to other provinces, many of which are bringing in deficit budgets to deal with tough economic times. The budget also predicts a $48 million surplus this time next year.

Manitoba and Saskatchewan are the only provinces that have delivered balanced budgets this year.

The budget affirms the province’s pledge for modest personal and business tax reductions, most notably the elimination of the small business tax in 2010.

The main focus of the 10th budget under Doer’s New Democrats is an increase in capital investment to $1.6 billion, a $625-million increase from last year and one designed to create jobs. That’s in addition to the $135 million expected from Ottawa this year in economic stimulus.

Projects that fall under this ramped-up spending program include renovated public housing, re-paving highways throughout the province, and increased capacity for training and education at universities and colleges.

The province is also making credit more easily available to business under the Manitoba Industrial Opportunities Program.

Selinger also said over the next fiscal year more than one-third of government departments will freeze speeding and even see slight decreases.

"In tough economic times, it is especially important for government to make the best use of public resources," Selinger said. "To do this, we will manage our staff vacancies and reduce overhead costs."

Maternal health care also received a boost through the introduction of a training program for midwives in southern Manitoba. Few details were available Wednesday, but the facility is expected to increase access to midwives for Manitoba women.

And while not exactly a budget item, the province also said today the speed limit on some of Manitoba’s twinned highways increases to 110 kilometres per hour effective July 1.

bruce.owen@freepress.mb.ca

 

What the budget means immediately to you:

  • Cigarette taxes go up a penny per cigarette tonight.
  • Speeding fines go up as of July 1 between $27 and $171 depending on degree of infraction.
  • The province is making entrance to all provincial parks free for two years to get more Manitobans staying in the province to vacation here. "We think that folks still want to recreate and we think they should recreate in Manitoba," Selinger said.
     

Other changes include:

  • Dropping the first income tax bracket tax to 10.8 per cent from 10.9 per cent.
  • Increasing the middle tax bracket threshold to $31,000 from $30,544.
  • Increasing the top income tax bracket threshold to $67,000 from $66,000.
  • Increasing the amounts used to calculate the Personal Tax Credit by at least 2.6 per cent.

 

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17 Commentscomment icon

That's what we knew would happen, they took such a stand against smokers they lost alot of "free" money, they have to make it up somehow.

Does no one notice that there is nothing here to reduce waiting lists for medical services or to assist in the renewal of capital city infrastructure, despite the fact we are digging deep into our reserves (mostly created by overcharging for Hydro and MPIC)

I still do not see how this is a "Balanced Budget" it is only Balanced due to us using the rainy day fund.

Why is it that every other Province that is currently running a Deficit, but has balanced its books by using rainny day funds still call it a Deficit, but here in Manitoba we call it a surplus.

How can this be a surplus with Debit repayment, when our Debit is going up?

How is this the 10th straight year of surplus's with Debit repayment. When our total Gross debit is now 5 billion higher then 10 years ago?

The numbers just don't add up Debit is up, we are taking a huge chunk out of the Stabalization fund. But we report this as a balanced Deficit Free budget?

No one goes to the parks because it's like a police state. Cops harrassing you constantly. Get rid of the drinking ban, that's what killed it.

What isn't reported is the amount of welfare manitoba get from other provinces, almost 4 billion! Easy to balance the books(can't do it without cooking the books) when someone else is paying. The NDP's idea is to run the province into the ground, then you get more money from Ottawa. It's pathetic, just like our health care, roads, mpic..........

Hugh, maybe if you had a PhD. in Public Administration, like Selinger, then you'd be able to understand the complex economics at stake. You sound like a little boy whining because can't understand what's goin on. "They're lying, it can't be true, I don't get it!"

Selinger is a very honest man. He speaks in facts, not in ideology. The revenues will shrink, the government has to be very prudent in all new spending. However, some stimulus is managed while maintaining a balanced budget. Good job.

I do agree with Jon Gerrard, we do need to attack diabetes more aggressively. But it's easier said than done.

QUOTE:
"What horrible disaster hit MB in the '70's that has caused us to under perform all of our neighbors....it is so shocking I can't say it, I can only spell it: N...D...P AUGHHHHHHH!"
END QUOTE

As usual we have those that wish to perpetuate myths for their own political gain instead of giving solid reasoning... AUGH!!!!!!!!!!

I have to read more on the budget to understand it better but I hope that any stimulus in this budget both creates jobs & benefits the province (better roads, energy savings, etc.). Let's not worry whether it results in "bigger government" or "bigger private sector" - let's just do what works BEST.

I guest he had to raise speeding fines to cover the money lost by increasing the speed limits to 110mph.
As for smokers, it's the same old thing, cash grab. Didn't see any increases in the other sin sales or all those hiden taxes or cash grabs they take every year. Oh ya, they also get additional funds from all of us because of the sale taxes. As the cost of everyday items go up, they get a bigger share. Penny here and penny there, and they give us free a pass to our parks. Come on Manitobians. This is just another snow job.

Tenth straight balanced Budget with Tax cuts and where's Hugh?

Oh!

The dog ate my homework, "I only got the document's 10 minutes ago, but I know the numbers are phony".....

That's it?

Is there any adult supervision over at the PC Caucus?

Anyone?

What are you talking about MB Guy and H M K? The new budget rules are the GAPP rules... the same accounting rules that all companies have to follow. This way the government doesn't have this special way of budgeting, it has to report its budgeting the same way that everybody else does.

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