By eliminating unnecessary programs and expenses, governments can become more agile and responsive to their citizens' needs.
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Adrian Sala, the NDP Minister of Finance, seems to be viewing Manitoba’s affordability through a pair of rose-coloured glasses. His attempts to spin the reality of our financial situation are becoming increasingly disconnected from the truth.
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Once again, Minister Sala has taken the stage to paint a rosy picture of Manitobans’ quality of life. In a recent media statement, he proudly announced, “For the third straight month, our province’s inflation was the lowest in Canada. Manitoba’s inflation rate in March was 0.8% year-over-year, compared to 2.9% nationally.”
He also claimed, “For seven years, the previous government found new ways to raise costs for Manitobans, whether through Hydro rate increases or rent increases. We’re taking real action to lower costs for families across the province, no matter where they live.”
The day the NDP decides to reinstate the gasoline tax, the inflation rate in Manitoba will skyrocket, potentially becoming the highest in the country. This decision, however, comes with a significant cost that the Minister conveniently fails to mention — the impact on the “affordability” of living in our province. If this tax is not implemented, we risk further deterioration of our infrastructure due to lack of revenue, or worse, sinking deeper into debt, a pattern we’ve seen all too often under the NDP’s governance.
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It seems like government officials think we were not paying attention. The inflation rate is determined by taking the average weighted cost of a basket of goods in a given month and dividing it by the same basket from the previous month. But if we go back a year or two, prices remain much higher.
It’s high time governments put an immediate halt to all non-essential spending. You and I have had to tighten our belts, and tens of thousands of Manitobans have done the same. During my tenure in politics, I consistently opposed budgets and strongly advocated for zero-based budget reviews. For daring to challenge the status quo on government spending, I was branded a rebel, a troublemaker, and not a team player.
Governments have said zero-based budget reviews would cost too much. Really? Reducing expenses is an investment, and there is a fiscal return. However, if they think it’s too much work, then just do one simple, easy thing: cut ALL non-essential spending now.
Forcing governments to cut all non-essential spending can be seen as a drastic but potentially beneficial measure for several reasons. Firstly, it promotes fiscal responsibility and accountability. Governments often accumulate unnecessary expenditures over time, which can lead to budget deficits and increased national debt. By trimming non-essential spending, governments can prioritize essential services and investments, ensuring that taxpayer money is used efficiently and effectively.
Secondly, cutting non-essential spending can help streamline government operations and improve overall efficiency. Bureaucratic inefficiencies and bloated budgets can hinder the delivery of vital public services and slow down decision-making processes.
By eliminating unnecessary programs and expenses, governments can become more agile and responsive to their citizens’ needs. This can lead to improved service delivery, reduced waste, and a more transparent and accountable government.
Furthermore, reducing non-essential spending can have long-term benefits for economic stability and growth. Excessive government spending can crowd out private investment and lead to more localized inflationary pressures. By curbing unnecessary expenditures, governments can create a more conducive environment for private sector growth and investment, which are essential drivers of economic prosperity.
Additionally, cutting non-essential spending can signal to investors and credit rating agencies that the government is committed to fiscal discipline, potentially lowering borrowing costs and improving overall financial health.
Government travel stands out as a prime target for cost reduction, with expenses reaching hundreds of thousands of dollars. Cancelling all travel for staff, government personnel, and public servants could yield significant annual savings. Furthermore, the significant increase in support staff for the new government is an example of non-essential expenditures that could be trimmed to generate savings. However, these measures only begin to address the surface of non-essential spending that occurs in government.
Let’s pretend for a moment the elected officials were staff running your business. Would you allow them to continue to keep doing the same thing as you go further and further into debt?
According to many inspirational mugs and posters, Albert Einstein said, “Insanity is doing the same thing over and over again and expecting different results.”
— Kevin Klein is a former Tory cabinet minister, a former city councillor and a former Winnipeg Sun publisher.
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