This spring, both Moody’s and Standard and Poor’s gave Manitoba a stable credit rating and rated them fourth best among provinces. Due to this summer’s flood, Moody’s has raised concern with potential increased debt.
Municipalities, landowners, businesses and homeowners have all been asking for financial support. So far only the provincial government has stepped in financially to help. Where’s the federal funding from 2011, let alone 2014? The financial burden has been placed squarely on the backs of the province and thank God that they have not turned their backs on us. They have continued to invest in infrastructure, jobs and the economy.
Only investing in the economy when times are tough will help pull the economy out of its recession, not giving tax breaks to big business and shutting down social services (reducing the tax base revenue).
It was interesting to find that in 1999-2000, the present NDP government inherited a $10.5-billion debt from the previous Progressive Conservative government, which was equivalent to 32.2 per cent net debt to GDP. The NDP projected ratio this year is $18.6 billion with a 29.8 per cent debt to GDP, which is lower than in 1999. Since 1999-2000, the debt servicing cost has decreased by 54.5 per cent from 13.2 cents of every dollar of revenue to six cents in 2014-15.
Considering we have gone through a recession and two major floods our present government is managing very responsibly.