Thursday 29 May 2008

See Gary Spend

I am not a legislation geek, but I heard about a proposal by the NDP to meddle with the balanced budget legislation on the Great Canadian Talk Show. Well as a concerned citizen, a fiscal conservative, and somebody with an economics background, this caught my attention because responsible financial management is extremely important for any government. Anything that can give the NDP even more leeway for spending is a scary prospect. So, while I also happen to be the laziest blogger in Winnipeg, I actually felt compelled to read the bill.

At first glance it doesn't look that bad, but here's the thing: the balanced budget isn't based on government operations anymore, but on the "government reporting entity" which includes crown corporations. Manitoba Hydro, for instance, while heavily in debt itself, does turn a profit most years ($122m in 2007; $415m in 2006). The government can use these profits to offset deficits in core government operations. In other words, the government can leverage the crown corps to spend more then they could under the current legislation.

This government has a serious spending problem and this legistation is not going to help. I think we need to bring in a professional:

also read: NDP bill crosses line from bad to awful

links: old bill / new bill


Unapologetic Ex-Winnipegger said...

I want the NDP's magic wand that lets them balance their books once every few years. It's always more fun to spend than to make hard choices.

cherenkov said...

Making difficult choices is the sign of a good leader, but not necessarily a popular leader. Doer prefers to be popular.

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