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Budget 2008 continues to retire Manitoba’s debt and pension liability with a $110-million payment, bringing total debt payments since 1999-2000 to $924 million, the largest in Manitoba history, Finance Minister Greg Selinger announced today.

 

“This year’s budget continues our commitment to sound fiscal management,” said Selinger. “We have made significant progress in addressing the province’s debt, particularly the unfunded pension liabilities, and today’s budget continues this commitment.”

 

Budget 2008 is the ninth straight balanced budget. It funds the government’s full share of employee pension contributions for the first time in more than 40 years, reduces the province’s net debt-to-GDP ratio, lowers debt-servicing costs and saves for the future. Selinger noted that between 2003-04 and 2007-08 Manitoba’s net debt declined by 6.3 per cent or $697 million.

 

The budget projects a Fiscal Stabilization Fund balance of $683 million at the end of 2007-08. At the end of 2008-09, it projects a summary budget surplus of $96 million and a 3.3 per cent growth in expenditures. Manitoba’s net debt-to-GDP ratio has been reduced by more than 30 per cent to an estimated 21.7 per cent for 2008-09 from 31.4 per cent in 1999-2000.

 

Today’s budget continues to address Manitoba’s pension liability. Created in 1962 when the provincial government stopped paying the employer portion of the pension fund, this liability had grown to $2.7 billion by 1999 and, if left unchecked, was projected to reach $8.9 billion by 2028.

 

“We have worked hard to tackle this monster liability without increasing the province’s net debt burden,” said Selinger. “After decades of inaction, we introduced a plan to eliminate this liability which has helped earn Manitoba six credit improvements since 2000. In fact, current projections indicate this liability will be eliminated by 2030.

 

“Budget 2008 continues with this sound fiscal approach,” said the minister.

 

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