WINNIPEG – The Manitoba government tabled a cautious, conservative budget last week, reducing total spending by 3.2 percent, or $176 million, for 1996-97.
But finance minister Eric Stefanson was quick to point fingers at the federal government for the tighter budget belt and warned future budgets will not be any bigger.
“Over the next five years, Manitoba will have received in total about $1.1 billion less in federal cash support for health, higher education and social services,” Stefanson said in his budget speech.
He said increased investments and jobs in the province point to confidence in the government’s financial management. Ten thousand new jobs were created last year, and the province has reached a 15-year low in bankruptcies, he added.
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In 1995-96, the government accumulated a $120-million surplus, and predicts another surplus of $22 million this fiscal year.
Reserve fund
But Stefanson said this money will be put into a “fiscal stabilization fund” in case of unbudgeted expenditures.
“It would have been irresponsible to spend this surplus on programs that could not be sustained over the long term,” he said.
The government did not increase taxes, and will spend about $54 million less on programs this year. Some programs facing cuts are:
- Pharmacare. The government will save about $20 million by tying the deductible for this prescription drug program to income, similar to Saskatchewan’s program.
- Routine eye exams. Annual checkups will no longer be covered for people between 19 and 64.
- Other health expenditures. The department has $37 million less to work with this year, two percent of last year’s budget.
- Education. The department has $3 million less, or a 0.3 percent cut.
However, Stefanson announced some programs will receive more money. These include:
- Personal care homes up $2.5 million.
- Home care up $8 million.
- Rural economic development programs up $1.75 million.
Students will have a new provincial learning tax credit to thank for better income tax returns each April. Stefanson said the province plans to spend $12 million on the new credit this year.
Stefanson also announced the government would make its first annual debt reduction payment of $75 million in 1997-98.
