REGINA, SK: Today the Canadian Taxpayers Federation (CTF) committed to participating in provincial consultations regarding balanced budget legislation. The NDP government suspended Manitoba’s balanced budget legislation in order to run deficits and has delayed its promised reimplementation. Now the Manitoba government has indicated it will hold consultations regarding changes to the province’s balanced budget legislation.
“Running a string of deficits is reckless,” said Todd MacKay, Prairie Director for the CTF. “Either we can work toward balancing the budget and paying down the debt now or our kids and grandkids will have to do it later.”
The Manitoba deficit now stands at $422 million. The debt is about $36 billion. Interest payments on the current debt are $842 million annually. Every Manitoban is forced to pay about $650 in extra taxes every year to cover interest costs.
Manitoba passed balanced budget legislation two decades ago. The legislation not only mandated government to match expenses and revenues, it also called for referendums on tax increases and salary cuts for cabinet members responsible for deficits. The NDP government suspended the legislation in order to run deficits and hike the PST without conducting a referendum or implementing salary penalties for cabinet ministers.
Today the CTF sent a letter to Manitoba Finance Minister committing to participate in consultations regarding balanced budget legislation. The letter is available here.
“When we make our presentation to the balanced budget consultations, our recommendation will be simple: the government should honour its commitment to reinstate Manitoba’s balanced budget legislation its entirety,” said MacKay.
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