In the wake of the latest fiscal update, the Canadian Taxpayers Federation (CTF) is urging the Manitoba government to take immediate action to address the escalating deficit, which has surged far beyond initial predictions. The CTF's Prairie Director, Gage Haubrich, said Premier Wab Kinew, despite inheriting the financial challenges, must now prioritize getting the budget under control.The provincial budget for 2023 initially anticipated a deficit of $363 million, but the recent fiscal update reveals a staggering increase, projecting a $1.6 billion deficit. The CTF points out that such a substantial deficit demands urgent attention to prevent further waste of taxpayer money on interest charges for the accumulating debt.Total government revenue has fallen short by $719 million compared to the budget, with income tax revenue witnessing a decline of $264 million and income from Manitoba Hydro decreasing by $610 million. Conversely, spending has surged by $530 billion, largely attributed to higher-than-budgeted salaries and benefits resulting from wage settlements and overtime pay.A significant concern highlighted by the CTF is the substantial increase in the number of Manitoba government employees earning over $100,000, as disclosed by the most recent sunshine list. The data indicates a 64% rise in the number of high-income government employees from 2020 to 2022. Haubrich contends that trimming these bloated government salaries should be a priority in the effort to reduce spending.The government's debt is now projected to reach $33 billion by the end of the year, representing a $2 billion increase compared to the budget. Interest charges on this mounting debt are anticipated to cost taxpayers $2.2 billion this year alone."Kinew needs to look for places to get spending down, and bloated government salaries are a good place to start," said Haubrich. He argues that borrowing money to fund six-figure salaries for bureaucrats is an unsustainable practice that burdens future generations of Manitobans.
In the wake of the latest fiscal update, the Canadian Taxpayers Federation (CTF) is urging the Manitoba government to take immediate action to address the escalating deficit, which has surged far beyond initial predictions. The CTF's Prairie Director, Gage Haubrich, said Premier Wab Kinew, despite inheriting the financial challenges, must now prioritize getting the budget under control.The provincial budget for 2023 initially anticipated a deficit of $363 million, but the recent fiscal update reveals a staggering increase, projecting a $1.6 billion deficit. The CTF points out that such a substantial deficit demands urgent attention to prevent further waste of taxpayer money on interest charges for the accumulating debt.Total government revenue has fallen short by $719 million compared to the budget, with income tax revenue witnessing a decline of $264 million and income from Manitoba Hydro decreasing by $610 million. Conversely, spending has surged by $530 billion, largely attributed to higher-than-budgeted salaries and benefits resulting from wage settlements and overtime pay.A significant concern highlighted by the CTF is the substantial increase in the number of Manitoba government employees earning over $100,000, as disclosed by the most recent sunshine list. The data indicates a 64% rise in the number of high-income government employees from 2020 to 2022. Haubrich contends that trimming these bloated government salaries should be a priority in the effort to reduce spending.The government's debt is now projected to reach $33 billion by the end of the year, representing a $2 billion increase compared to the budget. Interest charges on this mounting debt are anticipated to cost taxpayers $2.2 billion this year alone."Kinew needs to look for places to get spending down, and bloated government salaries are a good place to start," said Haubrich. He argues that borrowing money to fund six-figure salaries for bureaucrats is an unsustainable practice that burdens future generations of Manitobans.
