Outgoing NDP gov’t takes from rainy-day fund to pay down debt

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This article was published 27/04/2016 (3461 days ago), so information in it may no longer be current.

In one of its last acts in government, Greg Selinger’s cabinet passed an order Friday to drain $105 million from the province’s rainy-day fund and apply the money to the province’s debt.

An order in council just posted on the government’s website authorizes the minister of finance to transfer the cash from the province’s Fiscal Stabilization Account. The account was established by the Filmon Tories to be drawn upon in tough economic times.

According to budget documents, the withdrawal would leave the account with just $115 million. In 2011, it had more than half a billion dollars.

Premier-designate Brian Pallister announced today the new government will present its throne speech on May 16. A budget will follow “a couple of weeks” later, he told reporters.

Other orders issued by the Selinger cabinet on Friday — three days after the election — included the removal of a pair of NDP MLAs from Crown corporations. Jim Rondeau, who did not seek re-election in Assiniboia, had his appointment to the Manitoba Hydro board revoked. Similarly, re-elected MLA Ted Marcelino (Tyndall Park) was removed from the Manitoba Public Insurance board of directors.

The payment of $105 million will be credited to the recently completed budget year, ended March 31, 2016.

In a fiscal statement released shortly before the election, the Selinger government projected a deficit of $773 million for the 2015-2016 fiscal year and and $619 million for the current year.

larry.kusch@freepress.mb.ca