CBC: Mild criticism for new PC government’s fiscal debut
It’s a moderate and simple budget, according to Michael Benarroch, an economist and Dean of the University of Manitoba’s Asper School of Business. He said he was surprised to hear how long it would take to balance the budget.
“The tax breaks that they are giving are actually valued less than the removal of the education tax relief, that’s going to put a few million dollars in the government’s pocket. They got a little bit more money from the federal government that they are going to be using,” he said. “They’ve amalgamated some departments and they are really looking to hold the line on spending at three per cent and they are saying that’s going to be held going into the future.”
He said combining all of those factors over time will slowly reduce the deficit. If interest rates rise, which he says is unlikely in the next year or two, that deficit could leave the province with a hefty debt service.