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Wednesday, 20 April 2011 |
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By: Albert Parsons NDP MLA Candidate for Riding Mountain myWestman.ca The provincial budget released this week reflected the New Democratic Party’s priorities as Manitoba slowly eases its way out of the recession.
Manitoba endured the economic downturn better than most other provinces in large part because of the solid economic and social policies this government has implemented. The budget understandably forecasts a deficit because government spending continues to be necessary to keep the economy on track to recovery. Every other province, as well as the federal government, ran deficits during the recession—many of them much larger than Manitoba’s—and continue to do so to protect the slow economic recovery.
During a downturn in the economy, demand for government services does not decrease; in fact, demand often increases as people lose jobs and rely more on government services. To keep the economy going, stimulus spending by governments is vital; this deficit spending comes at a price of course, as deficits increase overall debt. The stimulus spending will end as economic recovery occurs and this economic recovery will gradually increase government revenues which then will be used to pay down the debt.
Manitoba NDP has developed a prudent five-year economic plan to accomplish this goal; the plan sees the province coming out of deficit by 2014-2015. The plan is a good one since an abrupt decline in government spending at this time would endanger the fragile economic recovery as well as remove essential government services when many people are still very dependent upon them. The current NDP’s successful management of the economy during the recession can be contrasted to the actions of the previous Conservative government during the last recession in the 1990s. Their approach was to slash government spending and to reduce government services—all with devastating consequences. As a result, unemployment soared, infrastructure suffered and citizens dependent on government services were left struggling to find assistance. Young people were the worst hit; there simply were no jobs and no opportunities for young people coming out of schools, universities and colleges. They left the province in droves, taking with them the skills that could have contributed to Manitoba’s economy and society.
The recent provincial budget focused on the needs of families, including children, youth and seniors. For example, new funding will create 2,100 new daycare spaces, tuition caps will help more youth access programs at universities and colleges, and seniors saw their education property tax credit increase. All citizens will benefit from increases in health and education funding, both so necessary to keep Manitoba on a solid path going forward. The government listened to municipal leaders and is dedicating a minimum of one per cent of provincial sales tax revenue to municipalities to spend on infrastructure. Over a period of years, this funding will enable municipalities to begin to address their infrastructure needs.
The finance minister, when releasing her budget, summed it up by saying, “It’s a balanced approach, it’s steady growth, steady steps being taken, listening to Manitobans and trying to make Manitoba the place where more young people want to stay... to raise their families... it keeps the province on a steady path of growth.”
Manitoba’s NDP government continues to provide solid economic leadership and strives to ensure citizens have the services they deserve. They are to be applauded for their steady, well-planned approach to managing the province’s finances while still providing the services its citizens require and want. And that is “the other point of view.”
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