The Canadian Taxpayers Federation has released its annual report cards for provincial finance ministers, and Manitoba's Adrien Sala received a D- grade, tying for the second-worst performance in the country. While this marks a slight improvement from the F he received last year, it remains unsatisfactory for taxpayers.
Grading Criteria
Finance ministers were evaluated on spending, debt, debt interest costs, and tax relief. Sala ranked near the bottom due to continued debt expansion, increased spending, and higher costs for Manitobans. The province's debt is set to increase by $3.2 billion, reaching $39.7 billion by year's end. This debt carries an annual interest cost of approximately $2.4 billion, equivalent to nearly $1,600 per Manitoban—the second-highest per-capita debt interest cost in Canada, trailing only Newfoundland and Labrador.
Debt Interest Payments a Concern
The Manitoba government now spends more on debt interest than on any other area except health care and education, making it the third-largest budget item. Debt interest payments cost taxpayers about $6.5 million daily, roughly the equivalent of Winnipeg Jets defenceman Josh Morrissey's annual salary being spent every day. Despite these alarming figures, Sala increased spending by $1.5 billion this year. If spending had been held at last year's record levels, borrowing could have been reduced by about $1 billion. Manitoba now spends more per person than any other Western Canadian province, yet other provinces deliver services at lower costs.
Bracket Creep Hurts Taxpayers
On tax relief, Premier Wab Kinew's government highlights a sales tax cut on ready-made foods like rotisserie chickens as a measure to improve affordability. However, this ignores the bracket creep income tax hike implemented last year. Bracket creep occurs when tax brackets are not indexed to inflation, pushing taxpayers into higher brackets and increasing their tax bills despite no improvement in purchasing power. While Sala's budget includes tax relief worth about $71 million annually, bracket creep cost Manitoba taxpayers $82 million last year. The cost of this hidden tax hike will continue to rise unless brackets are re-indexed. As Gage Haubrich, Prairie director at the Canadian Taxpayers Federation, notes, "Sala is handing you pennies with one hand while taking dollars out of your wallet with the other."
Kinew promised to lower costs for Manitobans during the 2023 campaign. However, a family earning $75,000 per year still pays the highest taxes in Western Canada, just as they did when the NDP was elected. Taxpayers are calling for action: pay down debt, control spending, and reverse the bracket creep tax hike. Only then will Manitoba's finance minister truly deliver for taxpayers.
