Manitoba’s Five-year Economic Plan Meets G20 Plan for Economic Recovery and Fiscal Balance

McFadyen’s Conservative Plan Out of Step With Harper, Other World Leaders

28 June 2010

Today, Finance Minister Rosann Wowchuk welcomed the G20 Toronto Summit Framework for Strong, Sustainable and Balanced Growth and noted its consistency with Manitoba’s five-year economic plan.

"The G20 plan balances the urgency of supporting economic recovery in the short run with the need to restore budgetary balance over a multi-year plan," said Wowchuk. "Manitoba’s five-year economic plan takes the same approach by supporting stimulus investments in jobs and growth, while ensuring a return to budget balance by 2014."

Hugh McFadyen’s Conservatives recently moved a budget amendment to restore balance by next year that would require $450 million in spending cuts next year. Making those deep spending cuts would threaten Budget 2010 investments in:

  • expanded doctor and nurse training;

  • new health care facilities like the new birthing centre in south Winnipeg and the first mental health crisis response centre;

  • more police officers and cadets, prosecutors, and Winnipeg’s new police helicopter;

  • hundreds of new child care spaces;

  • supports for colleges and universities that will keep Manitoba’s tuition fees the third lowest in Canada; and

  • infrastructure stimulus investments in every region of Manitoba to create 29,000 jobs.

"McFadyen’s Conservatives are mired in the old ways of firing nurses and cancelling needed investments in roads and hospitals," Wowchuk said. "McFadyen is out of step with Stephen Harper and world leaders who all recognize the need for a plan to manage the effects of the global recession over several years."

Wowchuk noted that Manitoba’s fiscal plan shares the key elements of the G20 framework which:

  • called for "following through on fiscal stimulus";

  • committed to "fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016";

  • stressed the need to "strengthen social safety nets (such as public health care and pension plans)"; and

  • stated "the time to communicate our medium-term fiscal plans is now."

Manitoba’s five-year economic plan:

  • invests $1.8 billion in infrastructure stimulus projects to create jobs and support the global recovery;

  • returns the budget to surplus by 2014 and exceeds the G20 deficit reduction target with an estimated 73 per cent reduction by 2013;

  • projects the return to a downward trend for Manitoba’s net debt-to-GDP ratio;

  • invests in vital services by targeting 90 per cent of all spending increases to front-line services, such as health care, education and training, family services and justice; and

  • outlines a clear five-year plan to lay the foundation for growth and restore balance.