It has been interesting to see how differently the three prairie provinces have managed their most recent budgets.
It’s fairly safe to say that the prairie economy has been the best in Canada, yet even here, the 2013 budgets were a challenge.
Alberta’s government refused to instigate a sales tax despite facing an enormous shortfall, caused mainly by a drop in bitumen prices. I hear rumblings that even Albertans, faced with massive borrowing, might consider a sales tax the better option over a $4 to $6 billion deficit.
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Saskatchewan managed to balance its budget, although in true Saskatchewan style it took some robbing of Peter (crown corporations) to pay Paul (the general revenue fund.) Sask-atchewan residents continue to pay a five percent sales tax, and there were few increases apart from sin taxes.
It may have come as a shock to Manitobans that their sales tax is going up one percent to eight percent. Manitobans are supposed to be consulted on these things, thanks to a law that provides for a referendum on PST increases.
Eight percent. Wow. How many Manitobans would have voted for that?
The government says it’s all because of flooding and the need to mitigate its effects while tapping into federal infrastructure funding. Illogically, spending will fall 6.2 percent for conservation and water stewardship.
Core funding in agriculture will fall 5.4 percent to $214.6 million — not a surprise, considering business risk management funding was already cut in Growing Forward 2. In addition, the promised elimination of education tax on farmland did not happen, vet fees will rise and the manure management program was slashed by more than half.
Alberta also cut ag funding to $583 million from $628 million (most of it through eliminating the Farm Fuel Distribution Allowance), while Sask-atchewan reduced its funding to $407 million from an estimated $430 million last year.
It’s up to you, voters, to pick your favourite method of managing around interesting economic times: raise taxes, borrow money or shift the funds around.
My apologies to Michele Payn-Knoper, whom I inadvertently called Marilyn last week. Since I know her name is Michele, with one L, I cannot explain this ridiculous mistake.
