WINNIPEG, MB: The Manitoba government is making progress to balance the budget with a slight decrease in the deficit and spending restraint in the wake of a dip in revenues, but more work is needed as annual interest payments are projected at $981 million.
Todd MacKay, Prairie Director for the Canadian Taxpayers Federation, will be available to comment on the mid-year budget update between 2 p.m. and 4 p.m. at the Legislature.
“The Manitoba government is saying it’ll shrink the deficit by $13 million and while the province still has a long way to go to balance the budget, this improvement isn’t nothing,” said Todd MacKay, Prairie Director for the Canadian Taxpayers. “It’s good to see the province didn’t use lower revenue numbers as an excuse to run up borrowing.
“Most importantly, the government is keeping spending in check and cabinet ministers deserve credit for staying on track.”
According to the mid-year budget update, the Manitoba government is projecting a deficit of $827 million – a slight improvement over the $840-million deficit projected in the budget. However, last year’s deficit was $764 million and the government is legally required to reduce that number.
Income tax revenue projections are down by $187 million. The province managed to absorb that loss without increasing the deficit due to higher revenues from other taxes and spending restraint.
However, interest on the existing debt is projected to cost $981 million this year.
“Millions of dollars a day are pouring out of the province because of the interest on Manitoba’s debt,” said MacKay. “Keeping that money in the province would create opportunities to lighten the heavy tax burden on Manitoban families.”
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