Province’s fiscal report shows millions in savings despite $1.6 billion deficit

An update to the province’s second quarter report shows an additional $123 million in savings, but staying the same is the province’s $1.6 billion deficit.

The government attributed its savings to measures such as recently disbanding the diagnostic and surgical recovery task force which saw patients from Manitoba sent out of province to receive medical care. That move according to the government saved the province $15 million.

Other savings the government says it found include:

• $32 million in the winding down of the COVID command centre;
• $25 million dollars in the province’s Idea Fund;
• $16.3 million in what the government says is unnecessary stockpiling of PPE;
• $14 million in administrative costs within the health system;
• $5.8 million from a lack of nurses coming from the Philippines;
• $2.6 million of costs above budget relating to conferences and audit fees.

“The more we get into this fiscal year, surprise, there is a $1.6 billion deficit. The further we get into the fiscal year the more we see Budget 2023 was wishful thinking,” said Premier Wab Kinew. “For us to deliver on our campaign promises means being responsible. Any dollar we want to spend we have to find savings in another area.” 

The current government has blamed the previous PC government for the $1.6 billion deficit, faulting them for not accounting for several factors including inflation, new collective agreements, and lower revenue from taxes and Manitoba Hydro all while promising items that were not budgeted for. 

“It’s really unfortunate that he [Wab Kinew] is getting Manitobans ready for their fake numbers. Their numbers are getting Manitobans ready for an increase in taxes, priming Manitobans for the deficits that they are going to run and as we heard today the cuts in programs that they are committing to doing,” said Obby Khan, PC MLA for Fort Whyte. 

While the government is still pledging to follow through with its promises and balance the books, some groups in the province are asking the NDP to re-think its tax cuts. 

“It’s about holding the line and making sure that we do everything we can to not allow those expenditures to continue to go in the direction the last government sent us in,” said Adrien Sala, Minister of Finance. 

The Canadian Centre for Policy Alternatives released an open letter Wednesday asking the government to prioritize healthcare and education over tax cuts. 

“The Budget 2023/24 tax cuts create a structural deficit with a substantial opportunity cost for investment in services and addressing the social deficit,” the letter said. “Tax cuts disproportionately benefit well-off Manitobans, and provide little to no relief for those struggling most with the rising cost of living.” 

The letter featured several signatories from unions in the province including from CUPE, the Manitoba Government and General Employees’ Union and the Manitoba Federation of Labour. 

“People elected a government that said our priority is healthcare, our priority is fixing public services, our priority is dealing with the staffing crisis,” said Kevin Rebeck, President of the Manitoba Federation of Labour. 

Thomas Linner, Provincial Director of the Manitoba Health Coalition added, “We just don’t think at this time with the healthcare crisis that we are facing that it is the most prudent move. We urge the government to consider that to put those dollars to the frontlines of healthcare.” 

The government says they’ll continue to look for savings including broadening their net when it comes to recruiting healthcare workers instead of going to the Philippines to recruit workers, an initiative the province says barely saw anyone come to Manitoba. The government also says a third-party audit of the province’s finances is still underway. 

“Unfortunately, $1.6 billion last week is still $1.6 billion this week. With this new update, taxpayers were hoping the government was going to come forward with new ways to tackle the deficit and get that number down, but as it sounds right now taxpayers are going to be on the hook for $2.2. billion in interest costs this year,” said Gage Haubrich, the prairie director for the Canadian Taxpayers Federation.