•    Core balanced budget now delayed until 2015-16; one year later
    •    Spending up $318 million (2.8%) budget to budget (despite claim of 3.9% cut)
    •    $106 million sales tax increase, tobacco & fuel taxes also up

WINNIPEG, MB: The Canadian Taxpayers Federation (CTF) responded to today’s Manitoba budget with disappointment, noting that the province has not only tabled a larger deficit than it projected in last year’s budget, it has pushed back its core balanced budget date; from 2014-15 to 2015-16.

Despite claims of reducing core spending, budget-to-budget spending is up $318 million or approximately 2.8 per cent. On a summary basis, spending is up budget-to-budget by 3.1 per cent. Manitoba’s net debt will increase by about $47 per second this year.

“A few years ago Saskatchewan actually reduced spending to get help balance their books,” said CTF Prairie Director Colin Craig. “Here, spending is up 2.8 per cent and they’re trying to call it a cut. This government’s inability to reduce spending is why our debt is climbing by $47 per second.”

Tax Increase Highlights include:

• PST – expanded to include life insurance premiums, spa services, tattoos, hair cuts over $50, manicures, pedicures, baggage insurance and other services for a $106 million tax increase
• Bracket Creep – Manitoba continues to be one of only three provinces that doesn’t index its tax system for inflation; secretly costing taxpayers millions in personal income taxes
• Tobacco Tax - up 2.5 cents per cigarette
• Gas & Motive Fuel Tax - up 2.5 cents/litre
• Vehicle registration - up $35

“The province made some positive moves to reduce the bureaucracy,” said CTF Prairie Director Colin Craig. “Unfortunately, we needed to see a much more aggressive approach to cut the deficit.”

Craig noted that last year’s budget projected a $485 million deficit in 2012 on a core basis and a $345 million summary deficit.

However, this year’s budget projects a $537 million deficit in 2012 on a core basis and a $460 million summary deficit.


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For comment, please contact:

Colin Craig,
Prairie Director – Canadian Taxpayers Federation
204-227-5561 (cell)