Manitoba's NDP government, approaching the first anniversary of its election victory, is facing a fiscal squeeze as it tries to fulfil promises to cut living costs,.
Manitoba Premier Wab Kinew the day after his election victory in Winnipeg on Oct. 5, 2023. Kinew's NDP government, approaching the first anniversary of its win, is facing a fiscal squeeze as it tries to fulfil promises to cut living costs, give more money to public sector workers and eliminate chronic deficits.
Having delivered on some tax-cut promises and spending commitments, the government is now working on issues including where spending can be contained. “They seem to want to be responsive to any group that comes along and says, ‘We’re experiencing economic hardship,’ or ‘We’re entitled to more benefits than this.’ So how they respond to the claims on the public purse and achieve a balanced budget by 2027 is hard to see at this point,” said Paul Thomas, professor emeritus of political studies at the University of Manitoba.
But the Tories loosened the purse strings in their last two years in office before losing last October’s election. The extra spending, combined with a downturn at Manitoba Hydro and a one-time, half-billion-dollar legal settlement over child welfare payments, created a large deficit for the NDP to inherit.
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