4 days ago
Government watchdog gives Manitoba minister title of ‘worst finance minister in the country': report
Manitoba Finance Minister Adrien Sala has received an overall F grade from the Canadian Taxpayers Federation on provincial spending, debt, debt interest and tax relief. (THE CANADIAN PRESS/John Woods)
The Canadian Taxpayers Federation (CTF) has given Manitoba's finance minister the title of 'worst finance minister in the country,' according to a report on provincial government spending.
The organization that is 'dedicated to lower taxes, less waste and accountable government' released its 2025 Finance Minister Report Card—ranking ministers based on provincial spending, debt, debt interest, and tax relief.
The report compared provincial budgets from last year to this year and took into consideration other provincial fiscal announcements.
Manitoba Finance Minister Adrien Sala received the lowest grade according to the report, an overall F, which he shares with Newfoundland and Labrador's Finance Minister Siobhan Coady.
The report indicates that Coady also received the title of 'worst finance minister in the country.'
Lowest grade for tax relief among provinces: report
'Unfortunately, Manitoba is not performing well financially compared to other finance ministers in the country,' said Gage Haubrich, CTF prairie director.
'Manitoba was one of the only provinces this year to actually hike taxes in its provincial budget, and it did in a sneaky, underhanded way, known as bracket creep,' he said.
Haubrich said that Manitoba's government has stopped linking income tax brackets to inflation, which will cost Manitoba taxpayers $82 million this year, per the report.
Manitoba received the lowest grade for tax relief among the provinces.
'So that means just by getting a cost-of-living raise, not actually making any more money, you can get bumped up into a higher tax bracket, and that increases your taxes,' said Haubrich.
Gage Haubrich
Canadian Taxpayers Federation prairie director Gage Haubrich said that the provincial government's decision to stop linking income tax brackets to inflation is 'a very sneaky tax hike.' (Zoom)
He said the longer bracket creep sticks around, the more money taxpayers are going to pay from compounding inflation.
'It's a very sneaky tax hike,' Haubrich said.
He added the last time Manitoba got rid of bracket creep was in 2017.
The report says that the government 'introduced a small cut to the province's payroll tax and an increase to the homeowner's affordability tax credit' but adds that the cuts save taxpayers less than what the bracket creep will cost them.
F grade for debt interest payments: report
Manitoba also received an F grade for debt interest payments, along with Quebec and Newfoundland and Labrador.
The report says that the Manitoba debt interest payment will be $2.3 billion this year, working out to be $1,554 per person, only behind Newfoundland and Labrador at $2,088 per person.
The province also received a D grade for a spending increase, listed at approximately 7.1 per cent, and the same grade for debt, which is planned to increase to $1 billion compared to last year's budget, per the report.
'Manitoba is on solid financial footing,' says Sala
In an emailed statement from Sala, he said, 'Our plan was recently given an A+ by S&P Global Ratings, which means independent experts believe Manitoba is managing its finances responsibly.'
'This lowers borrowing costs and creates more stability for Manitobans in uncertain times, with a greater capacity to invest in the things that matter, like health care, affordability and public safety.'
Sala added that 'Manitoba is on solid financial footing.'
The report says that Saskatchewan's finance minister is 'performing the best,' with an overall B+ grade.
'No finance minister in the country earned an A grade for their budget, because all finance ministers are continuing or planning to rack up debt and waste millions of taxpayer dollars on debt interest payments,' says the report.
