WINNIPEG — The Manitoba government will be able to run deficits without forcing cabinet ministers to take pay cuts, under a bill introduced today in the legislature.
The new bill replaces a balanced budget law that the Progressive Conservative government scrapped after winning the provincial election last year.
RELATED: Manitoba Premier Greg Selinger sticks with balanced budget pledge
Get daily National news
The old law required cabinet ministers to take a 20 per cent pay cut any time the government was in deficit.
The new bill only requires the government to run a lower deficit than the previous year to avoid the penalty.
RELATED: Manitoba government set to release 2017 budget in April
- Carney awarded ‘Democracy Medal’ by global group of political strategists
- Canada-U.S. trade deal must include viable auto sector, Carney says
- Lawyers unsure if extra funding can reduce massive caseload at Federal Court
- CFB Wainwright incident casts spotlight on reserve pay disparities: former bureaucrat
It also changes the way the deficit is calculated for the purposes of the pay cut.
Finance Minister Cameron Friesen had hinted at the change last year, citing a deficit of more than $800 million inherited from the NDP.
The bill reinstates a requirement under the old law to hold a referendum before any major tax increase, although it contains no penalty for governments that violate that provision.
Comments
Want to discuss? Please read our Commenting Policy first.