Sala touts economic record in Oak Lake

OAK LAKE — Manitoba’s finance minister said the province is “outperforming” its economic outlook forecasts despite pressures from south of the border.

The governing NDP is making “irrefutable” progress toward balancing the budget during its first term, despite walking into a $1.6-billion deficit when the party won the October 2023 election, Adrien Sala said at an economic update for municipal officials in Oak Lake.

“Manitoba is standing strong. Our economy continues to move forward in a good way, and we are outperforming almost all expectations that have been outlined for me by the economists we work with and others,” Sala told about 65 attendees at the Oak Lake Community Hall.

He said the government’s outperformance has taken place since U.S. President Donald Trump’s “Liberation Day” tariffs hit last year.

Manitoba’s diverse industries, he added, are helping it perform better than provinces that rely on specific sectors.

Premier Wab Kinew said in September that the province is on track to balance the budget next year, and the province reported an $832-million deficit last year, far lower than the $1.67-billion deficit it warned about in December.

Sala’s talk focused mainly on the “progress” his government is making in balancing the budget and reducing the amount of money the province is spending on debt. He said that’s in spite of the money the province is spending on health care and infrastructure, among other things. He also highlighted provincial rebates and the elimination of provincial sales tax on food as ways to save families money.

“We’ve made major, major increases in our expenditures while holding that line. I think that’s a sign of a government doing what people want to see us do, which is find that road of balancing … investments that we need to make, with making sure we have a fiscally responsible path for it,” said Sala, the MLA for St. James.

He said the province still has a “lot of catching up to do” because of the previous Progressive Conservative government.

The attendees, who were mostly elected officials from municipalities around Westman, asked Sala a variety of questions, touching on the high cost of local infrastructure, child care and taxes.

Sala said the province has been approving more grants and other projects than the previous government, but does need to improve how it can partner with different organizations.

“Just like you, our balance sheet has limitations,” Sala told the crowd, in response to a question, adding, “We’re going to work together to figure it out.”

Grant Boryskavish, reeve of the RM of Riding Mountain West, asked about disaster financial assistance during the meeting.

Sala said the estimated cost of flooding during the summer was around $250 million, and that the province is still working through the process to get payment out to some people.

He said the financial repercussions of the “one in 10,000-year” event do not fall under his portfolio as finance minister.

Scott Phillips, a councillor for the RM of Sifton who hosted the meeting, said an event like Thursday’s allows municipalities to see that others are facing the same challenges, and raise them to a minister.

After the meeting, Phillips said the current government is “really engaging” with rural Manitoba and getting a better understanding of what rural officials need.

Hamiota Mayor Randy Lints, before asking his own question about water during a Q&A portion, also commended the province, saying a meeting last year that brought the health minister to his community is something that likely wouldn’t have happened under a previous government.

“Your government really seems to be open and honest and approachable,” he said.

Sala after the meeting told the Sun that having Thursday’s event helps his government prioritize for the spring budget, which will be the last before the next provincial election, slated for no later than Oct. 5, 2027.

“This is an incredibly valuable opportunity for me as a provincial minister to hear directly from community members to understand what priorities are here locally,” he said.

For the next budget, it’s clear the province needs to continue increasing operating grants and investing in infrastructure, Sala said.

The province typically unveils its budget in late March.

» alambert@brandonsun.com