Is Manitoba worst in fiscal management? Winnipeggers and experts weigh in

After a study by Fraser Institute ranked Manitoba’s Wab Kinew at the bottom of the list, some experts question the report’s methodology.

The think-tank released the rankings of Canadian premiers, after its study on government spending, taxes, deficits and debt.

Jake Fuss, director of fiscal studies for the Fraser Institute, says it was early in the tenure for Premier Kinew, and his government’s fiscal performance was assessed only for 2024-25.

“Ultimately we are looking at their fiscal performance, because this is a crucial indicator of economic well-being for the province and ultimately the premiers are the ones who are setting the direction for ultimately that fiscal responsibility over the long run,” Fuss said.

Fuss says, one of the reasons why Manitoba’s fiscal performance was ranked the worst in Canada was the province’s deficit.

“Government spending, for instance, has grown much (faster) than inflation and population growth, it’s also grown faster than the economy itself,” he said.

Niall Harney, senior researcher at Canadian Centre for Policy Alternatives Manitoba, disagreed with the study which viewed the reduction of government spending as key to producing economic benefit.

“Things like housing and infrastructure generate far more benefit and economic prosperity then something like tax cuts,” Harney said.

Harney says it is not fair to assess fiscal management just on the fact that the province is spending a lot, especially as the province makes up for underspending towards supporting social programs, healthcare and addressing homelessness and addictions.

“What we are seeing is they’ve started to repair those systems after years of chronic underfunding, but there is still a lot of work that needs to be done,” he added.

“An increase in government spending in the year 2024-2025 which is really that the government is responding to seven years of a major underspending in the province of Manitoba.”

Harney said Manitoba was also addressing affordability through its spending.

CityNews spoke to Winnipeggers how they feel about affordability in the province.

“The inflation it’s pretty high, especially for the young people, young family to try and have good quality of life,” said one Winnipegger.

Meanwhile another Winnipegger said, “We seem to be able to manage. We are both retired, but it’s always that last week that’s always a little harder.”