Manitoba's Roadmap to Economic Prosperity

CTF 2005 Pre-budget Submission (576 KB)

WINNIPEG: The Canadian Taxpayers Federation will meet with Finance Minister Greg Selinger this morning to present the CTF's findings and recommendations for the 2005/06 Manitoba Budget.

The theme of this year's pre-budget submission is spending less and smaller government. "The Manitoba government has a serious spending problem putting the economic well being of our province in jeopardy," stated Provincial Director Adrienne Batra. "The provincial auditor's latest report indicates that we are facing a $604 million deficit - this should serve as a wake up call that spending beyond our means is no longer an option."

"The next provincial budget represents a crossroads for Manitoba taxpayers, with both the deficit and crown debt on the rise, we must determine what road to travel," added Batra. "The CTF recommends the government's fiscal strategy must be built on the pillars of debt reduction, tax relief and redefining the role of government."

Driven by the results last year's CTF membership survey results, the pre-budget submission, available at www.taxpayer.com, finds that low confidence in provincial tax rates to spur business development has inspired supporters to press for income tax relief, consolidate government departments and put a lid on run-away spending.

"The demand for tax relief is real and warranted," said Batra, "tax cuts can be realized by sustained economic growth, improved and efficient delivery of government services, and through the divestiture of some crown corporations."

The issues of debt reduction, tax relief and redefining the role of government, are central to determine what opportunities Manitobans will have in the future. "If these concerns are not resolved, or if the path is to increase spending, we will find ourselves falling behind other jurisdictions," concluded Batra.



The CTF's Recommendations for the 2005/06 Budget:

1. The province immediately move to Generally Accepted Accounting Principles (GAAP) which include the entire fiscal health of the province - everything from the operating budget to crown corporations would then be included.


2. Reduce costs of the public service. Re-examine salaries paid to the public service, as well as the number of employees currently on the government payroll. Public sector wages must be reviewed in all sectors.


3. Eliminate business subsidy programs which would result in $14 million in annual savings.


4. In conjunction with the next provincial election, hold a provincial referendum on the question of opening up Manitoba Public Insurance to competition and privatize Manitoba Liquor Control Commission and use the proceeds of the sale to pay down debt.


5. Introduce competitive tendering for services within the health system. The government should further consider public-private partnerships for all health services - including ownership and operation of hospitals.

6. Establish a long-term solution to increase the provincial share of education funding in order to curb school board taxes to fund education.


7. Set provincial income tax rates as follows - first rate from 10.9 percent to 10 percent, middle rate from 14 percent to 12.5 percent and third rate from 17.4 percent to 14.5 percent.


8. Raise the Basic Personal Exemption in the 2005 to $8,404.

9. Expand the scope of the Balanced Budget, Taxpayers Protection and Debt Retirement Act to school boards and municipalities.


10. Continue to eliminate school taxes on farmland.


11. Continue to phase out the Education Support Levy.


12. Fully index Manitoba's tax brackets to the rate of inflation and end bracket creep.


The CTF will meet with the Hon. Greg Selinger today, February 17, 2005 at 9:00 a.m.



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