Hands off the balanced budget law
Author:
Adrienne Batra
2003/12/02
Remember what our parents said on allowance day: "you'll have to live on what we give you." So why in our nanny state shouldn't governments do the same Expectations of control spending, debt repayment and affordable taxes are denied with the same tired and politically driven excuses. Oversized and meddling governments continue to thwart economic growth and the ability of people to provide for themselves and their families.
During the tax-and-spend years of the 1980s and early 1990s, governments across the country overspent and debts ballooned to obscene levels. Thanks to taxpayers and a handful of responsible politicians, times changed. Canadians have balance budget and taxpayer protection legislation in several provinces and, unlike the bad old days, some governments actually pay down a little debt.
With progress being made, it is mind boggling that Manitoba's Finance Minister would even muse over the idea of amending the Balanced Budget, Taxpayer Protection and Debt Retirement Act to once again allow them to run deficits. Selinger's November 14 budget consultations were an "eye-opener" for John Pittman, chairman of the Manitoba Chambers of Commerce. "I received the distinct impression," Pittman said later, " that the minister was looking for permission to change the balanced budget legislation." Is it too much to ask the government to be prudent with public funds Is it too much to ask for truth in budgeting Most importantly, is it too much to ask for accountability
Manitoba's Balanced Budget law is widely considered to be the most effective and comprehensive taxpayer protection law in the country on the account of stiff penalties to politicians and the wide scope of the law. This legislation includes real enforcement mechanism which would dock the pay of provincial cabinet ministers by 20 percent if a deficit is incurred in one year, and 40 percent if a deficit is carried over two or more years.
There are those that correctly point out that circumstances may not allow a government to balance the books. They suggest that the legislation restricts the governments ability to govern, the Act takes these concerns into consideration as there are three provisions that allow for deficits: natural disasters that could not have been anticipated; Canada is at war or under the apprehension of war; and a reduction in revenue by 5 percent or more in the fiscal year, other than a reduction resulting form a change in Manitoba's taxation laws.
I have said it before, and I will say it again, this government does not have a revenue problem, it has a spending problem. Last year alone government spending increased by 5 percent and continues unabated. Balanced Budget laws are taxpayers first line of defence against government waste and largesse, not only are they desirable they are critical if taxpayers are to see their dollars directed towards programs and services, not ever increasing payments on a growing debt. Without laws and strict enforcement mechanisms, professed "targets" and " commitments" made by government aren't worth the paper they are written on.
If the Minister of Finance was floating a trial balloon from his pre-budget consultations to tinker with the Balanced Budget law he needs to remember one very important thing, today's debts are tomorrow's taxes and Manitobans already pay enough.