Manitoba NDP says unspent government funds would cover more than $500M in new spending

The Manitoba New Democrats say they can afford the new spending they've promised during the election campaign thanks to existingcontingenciesin the provincial budget.

The NDP released a costed platform Thursday that outlines between $520 million to $608 million in new spending for each of the next four years, if the party is elected on Oct. 3.

That new spending will mainly be paid for byredirecting fundingthe Progressive Conservative government had budgeted but never spent, according to the NDP.

For example, the 2023-24 budget sets aside $520 million for "contingencies and unanticipated events" that NDP Leader Wab Kinew says hisgovernment would use tocover new spending, mainly inhealth care.

In addition, the party anticipates it wouldhave an extra $66 million to spend in the upcoming fiscal year by redirecting other funds the Tories have left unspent, along with a return on infrastructure investments and endingthe practice of giving education property tax rebates to someout-of-province property owners.

"This plan is aresponsible and a transparent approach to using the resources that you invest in your provincial government so we can fix health care,so we can lower costs for you and your family," Kinew told reportersfrom a highrisebalcony at West Broadway Commons in Winnipeg, overlooking the Manitoba Legislative Building.

The provincial government wouldstill be able rely on other areas of the budget to coverunforeseen expenses, Kinew stressed, such as the$585-million fiscal stabilization fund,commonlyreferred to as the rainy day fund.

Kinewsaid he isn't concerned about the province having less fiscal breathing room. Throughout the election campaign, he's alleged the Tory government has used contingencies to splurgeon new spendingbefore the release of every budget.

"We've struck a balance here," Kinewsaid.

"We're still preserving acushion to respond to unforeseen events that will inevitably arise," but his party wouldalso "ensure that there's more transparency by spelling out" spending in greater detail, he said.

The NDPwould accomplish its goals without raising taxes, he said.

• Here's what the parties promise on the economy and otherelection issues

Platform forecasts$1M surplus after 4 years

The party'splatform forecasts the province will havea razor-thin surplus of $1 million dollars by the end of a four-year NDP term in office.

In the 2024-25 fiscal year, the NDP is projecting $582.5 million in new expenditures.

The party is promising almost $220 million of new spending onhealth care, including $125 million to recruit and retain new staff. The major expense of reopening emergency departments at three Winnipeg hospitals isn'ton the books until the third yearof the NDP's economic forecast, when the party plansto reopen the ER at Victoria General Hospital.

Other big-ticket items in the firstyear include $165 million to cut the provincial tax on gasfor six months and a loss of $37.5 million in revenue from the Crown-owned Manitoba Hydro. The utilitywould retainthat money so anNDP government could advocate for Manitoba's independent energy regulator to freeze electricity rates.

There's also $73 million promised for education, including spending to ensuresmaller class sizes in the early grades, and to hire more teachers andeducation assistants.

Outgoing Progressive Conservative MLA Shannon Martin argued the NDP is "severely underestimating" the actual costs of its promises and would be forced, if elected, to raise the PST.

The Tories estimate the NDP's promises would cost $3.3 billion over several years. Their calculationinflates some of theNDP'sfigures,such as assuming a New Democratic governmentwould pay the full cost for a potential search of the Prairie Greenlandfill for the remains of two First Nations women a search the NDP has said it supports, but for which it has not made a specific funding commitment.

The Tories' estimate also treatsa renters' tax credit as a new NDP commitment, when the party has actually said it will raise the amount of an existing rebate.

Martin said the PCs put contingencies in this year'sbudget to prepare for the numerous labour agreements the government completed, and for any other unforeseen events.

"Contingenciesareresponsible fiscal management, not free money for Wab Kinew to spend on his election promises," Martin said in an email.

Manitoba Liberal Leader Dougald Lamont chastised the NDP for following the tax cuts and balanced budget strategy the Tories have campaigned on.

"Instead of improving services for Manitobans, they are draining the contingency fund. This is fiscal insanity, and a total betrayal of what they spend months saying in the legislature," Lamont said in a statement.

The NDP is also earmarking $1.6 million over four years on an independent inquiry into the province's response to theCOVID-19 pandemic a much smaller amount than the $14 million spent on the province's last major inquiry, which examined the death of Phoenix Sinclair,a five-year-old girl who died in 2005after slipping through the cracks of the child welfare system.

Kinew said anNDP government would explorehow best to approach an inquiry.

• Read full coverage of the 2023 Manitoba election here

NDP says unspent funds in Manitoba budget can pay for party's election promises

1 year ago

Duration 1:59

The Manitoba New Democrats say they don't have to raise taxes to cover the party's election promises because they can use existing contingencies set aside in the provincial budget.