NDP debt growing faster than economy

- April 17th, 2012

The Government of Manitoba’s debt continues to grow in leaps and bounds after the NDP tabled its fourth straight deficit budget Tuesday.
And as percentage of the economy, Manitoba’s debt is starting to become a real problem.
Debt went up in almost every category in the budget, including the overall debt which now stands at a staggering $27.6 billion. That’s up from $18 billion in 2007 and it’s been climbing every year.
Capital investment debt — money the province borrows for capital projects like the new Bombers football stadium — is growing at the fastest pace. It now stands at $3.75 billion. That’s more than triple what it was in 2007 when it was just over $1 billion.
And that money will have to be repaid one day.
Total summary borrowings, guarantees and obligations — which excludes Manitoba Hydro debt — is also up. It’s pegged at $20.7 billion, up from $19.6 billion last year. It was $14.9 billion just four years ago.
Borrowing for general government programs has jumped $1.5 billion since 2007 when it was $6.5 billion. It’s now just over $8 billion. That’s money the government borrows to help pay for everyday operations, including funding for bureaucracies.
The summary net debt, which includes assets such as the pension fund and other financial assets, stood at $16.3 billion. That’s way up from last year when it was $14.8 billion. Summary net debt was $10.5 billion in 2007.
So no matter what category of debt you look at, it’s all up — way up.
The NDP says the province can afford it because as a percentage of a growing economy, it’s manageable.
But here’s the worst part. As a percentage of the Gross Domestic Product, Manitoba’s debt has been growing steadily over the past five years.
Net debt as a percentage of GDP is up for the fifth year in a row. It now stands at 27.4%, up from 21.6% in 2007.
At some point, this government is going to have to do something about it’s out-of-control propensity to borrow.
This has to stop.

Categories: Politics

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8 comments

  1. J Anderson says:

    It does need to change, but it won’t for a very long time.
    Of course the NDP says the debt is manageable, because they can just tax more (which they are doing) as a way to stay above water. Then people wonder why there are more and more people not ready for retirement and needing assistance. Perhaps its the near 45% of our income we cough up to various levels of government.

    People in general are not up to speed on the dangers of government borrowing and spending. As long as governements’ campaign on the idea that “we will take care of you”, then people will vote for them. Unfortunately citizens don’t realize that it costs a ridiculous amount of money for government to take care of us and make every group happy.

    We aren’t even close to a point where people will wake up…..it’s going to tak a monumentalmoney problem in the province for the general population to wake up to the fact that deficit financing and spending will crush our economic freedom in this province and country…

  2. Ghostlytri0 says:

    Holy cow and oh my goodness. I am sooo fed up with this dang spend, spend spend government.
    I have found out friends from Ontario are moving to Manitoba because they are NDP and they are fed up with the Liberal government. So much so they believe the Manitoba economic false truths that the Seligner government is throwing out there.
    Wouldn’t that put our hopes in the crapper if every NDP’er from other provinces deserted their own failing ships and came to Manitoba?
    I’ve grown up here, lived here my entire life. Love the province, despise the politics that believe we are no longer responsible for our own care, livelihood, and that they must do all manner of things for us because we are INCAPABLE of doing for ourselves. It is that mentality that
    1) Keeps the unions bargaining for others instead of each person being accountable to themselves.
    2) Keeps ensuring repeat criminals, adult and youth, are not stopped from polluting society over and over.
    3) Keeps citizenry on welfare and dependent on government instead of independent, healthy and self sufficient.
    As long as people can get it for free they won’t respect it. If they don’t work for it, they won’t appreciate its value.
    No wonder pockets of this country / province want self government. I think the Manitobans who want a different government and are not a special interest group or NDP should have their own pocket as well.

  3. eric says:

    people here just dont get it. but since they keep voting these morons back in each time maybe they run their personal finances like this.

  4. Marty says:

    Tom- perhaps you could do some reasearch and let us know how all of these debt metrics stack up to those in other Provinces. That would give your readers a true picture of Manitoba’s relative financial positon vis-a-vis other provinces. Or, is that data an uncomfortable truth to you?

  5. tom.brodbeck says:

    Marty,

    Manitoba has the highest debt-to-GDP ratio in the West at 27%. Saskatchewan’s i s 5%.Alberta’s is approaching 0%. British Columbia’s is 20%.

    Tom

  6. Marcel says:

    Fight about money all you want. It doesn’t matter who we elect. Each party is a victim of Usury. Right now interest rates are low because everyone’s debt is high. If the government was say to pay off its debt then interest rates would sky rocket again to put everyone back into debt and drive us into poverty. So whats the solution?

    Will for one make interest illegal duh.

    Two rather than our government give a bank a license to print money and then borrow money at rate of interest, simply print the money themselves and charge themselves 0.00 interest. Then you are going to start seeing some surplus….no need to cut back on anything.

  7. J Anderson says:

    Who cares how other provinces are doing? Even if they are worse, does that make our situation alright? Overspending is still irresponsible, even if others are doing more of it.
    Thats like saying one neighbor is a pretty cool guy because he beats his wife less than the guy next to him

  8. Dick says:

    Why is so much money being spent unneccarily like human rights museum and immigration when we have thousands of natives sitting on thier duffs getting paid They never tell us how much that costs us taxpayers

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