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Winnipeg Free Press - PRINT EDITION

Dollars & Sense

By: Staff Writer

Posted: 04/18/2012 1:00 AM | Comments: 0

Budget Winners

The winners are mainly middle class voters who continue to enjoy the NDP's continued push on education and health-care spending. This goes back to Gary Doer's election promises in 1999. In this current budget, there is a 3.7 per cent increase for education, which includes schools, colleges and universities, and a 4.9 per cent increase for health care. On the flip side, if spending is controlled in the other areas announced in this budget and assuming relatively modest economic growth, we might see a return to a balanced budget for the 2014-15 fiscal year. In this international economic recession, let's keep our fingers crossed.

Budget Losers

The losers are those who were previously exempt from the PST, including tattoo artists. Also, smokers will now pay 2.5 cents extra per cigarette, and motorists will be paying $35 more to register their vehicle and an extra 2.5 cents per litre. On the positive side, these two automotive-related measures will generate $66 million per year. It's enough to make us change our lifestyles. Other losers will be senior administrators employed in those provincial Crown agencies which have been identified for elimination or amalgamation.

On Balance

On balance, Stan Struthers' budget deserves an A. It provides prudent reductions in government spending during troubled times. The province is amalgamating a number of administrative top-heavy regional health authorities (from 11 to five) and merging two major provincial Crown corporations (these being Manitoba Lotteries and the liquor control commission). The budget also opens up significant revenue streams through extra but not overly burdensome fees, while at the same time not raising personal income taxes.

-- Christopher Adams, vice-president at Probe Research.

Republished from the Winnipeg Free Press print edition April 18, 2012 A1

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