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The Manitoba government’s reckless spending habits are driving up debt and crippling Manitobans

Gage Haubrich

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In the last decade, the Manitoba government has wasted more than $15.6 billion paying interest charges on the provincial debt.

That’s a huge number.

And because those billions have been wasted, the government hasn’t been able to use that money for projects or tax relief.

The reason it’s so high is that the government has continually failed to balance the budget, causing the debt and interest payments to balloon.

The Manitoba government has only balanced the budget twice since 2015. In 2015, the provincial debt was $21.9 billion. By the end of this year, it will be more than $35 billion. That’s $23,776 per Manitoban.

More debt means more money wasted on interest payments. The government is sending $2.2 billion out the door this year in interest payments to pay for the debt. That’s $1,520 per Manitoban.

About 22 percent of money Manitobans pay in taxes goes to covering interest payments. That means for every $10 in taxes you send to the province, two bucks go to interest payments on the provincial debt.

Reckless spending by Manitoba driving up debt and crippling Manitobans
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Now, at some point the government will have to pay back the debt when it can’t borrow anymore. But debt isn’t just a problem for future generations because the interest payments today are costing taxpayers big time.

What could taxpayers have had if the government had $2.2 billion more at its disposal?

Well, it could have paid for this year’s entire advanced education budget or the government’s transportation and infrastructure budget more than three times over.

In terms of tax relief, the money the government is spending on interest payments is enough to fully cut the gas tax for more than six years. It’s also enough to cut the PST by five percentage points this year.

Imagine the savings you could have had if the government was more fiscally responsible.

It’s clear that the government needs to balance the budget and get debt down.

And there’s only one way to do that. The government needs to spend less.

The government also shouldn’t cancel any tax relief to look for more money. A Manitoba family with a household income of $75,000 already pays more provincial taxes than a similar family in British Columbia, Alberta, Saskatchewan, Ontario and Quebec.

Taxpayers are already stretching their budgets to pay for everyday items. The last thing they need is to get a bill for more taxes.

This year, the government is increasing spending by six percent, but revenues are only increasing by four percent. With a projected deficit of $796 million this year, the premier must start to reign in spending.

The government’s budget this year predicts that inflation and population growth will increase by about five percent. If the government held the line on that increase, it would be spending about $220 million less this year.

The government also needs to axe corporate welfare. According to the Fraser Institute, the Manitoba government spends about $512 million each year on handouts.

The government is also spending $25 million to hand out thousands of dollars to electric vehicle buyers.

And it’s spent $40 million hiring new employees since being elected.

Combining all of these spending reductions would leave the government with a slim surplus that is a strong start towards getting the debt to come down rather than ballooning by millions every year.

Premier Wab Kinew and Finance Minister Adrien Sala promised Manitobans a balanced budget at the end of their first term. That needs to come sooner rather than later, and the only way to do it is if they have the guts to put a lid on spending.

Gage Haubrich is the Prairie Director for the Canadian Taxpayers Federation.

Explore more on the Kinew government, Government debt and deficit, Manitoba politics 


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