Manitoba's budget balancing plan criticized as unrealistic

The Manitoba government has announced a plan to balance its budget within two years. However, the Opposition Progressive Conservatives criticize these spending targets as unrealistic. They argue that the government's ability to control spending has been weak. The provincial budget includes a promise from the NDP government to eliminate annual deficits that have lasted since 2009, with a few exceptions. To achieve this, spending growth will be limited to 2.1 percent next year and 1.9 percent the following year. This is a significant reduction compared to a predicted seven percent increase this year. Lauren Stone, the Tory finance critic, expressed doubts about the government's revenue growth predictions. She believes they are overly optimistic compared to neighboring provinces. Finance Minister Adrien Sala explained that increased spending mostly comes from raising wages for public-sector workers, who faced wage freezes under the previous Tory government. The government initially expected a deficit of $796 million last year but revised it to $1.2 billion due to rising wage costs, especially in healthcare. The budget also plans to help businesses impacted by potential tariffs from the U.S. and China by providing financial aid. To increase revenue, the government will freeze personal income tax brackets instead of allowing them to rise with inflation. This change is expected to bring in an additional $82 million a year. Sala emphasized that maintaining a focus on sustainable budgeting is vital for managing borrowing costs.