The federal government could learn from New Brunswick’s prudent budgeting, says the Canadian Taxpayers Federation (CTF). CTF’s evaluations of other provinces haven’t been so shining, however, as many provinces have unveiled their budgets in recent days.
“New Brunswick is ... the only province in Canada that can say that it has a lower debt load than it did five years ago,” CTF said.
Ontario
“After Ontario finally balanced the books for the first time in over a decade, Ontario Premier Doug Ford is plunging the province back into deficit,” CTF Ontario Director Jay Goldberg said in a separate release on March 23.“Ford had a strong hand dealt to him with higher revenue and a budget that was already balanced last year and he tossed away the cards,” Goldberg said.
Ontario is expecting a deficit of $1.3 billion in the coming year. “The government could balance the budget this year, and it should,” Goldberg said, noting that debt interest payments for the coming year alone are estimated at $14 billion.
Alberta, BC
CTF held Alberta up as another exemplar. Premier Danielle Smith posted a $2.4 billion surplus, paid off $13 billion in debt, and announced legislation that would require half of all future surpluses go toward repaying debt.Alberta provides a good example, CTF said, while British Columbia provides a bad one.
B.C. will have a deficit this year of more than $4 billion, after ending 2022 with a forecasted surplus of more than $3 billion. CTF criticised it for “big deficits and no plan to balance the budget.”
Saskatchewan
Saskatchewan earned CTF praise for balancing its budget, but the province “is wasting an opportunity by not committing to reducing the debt over the long term,” said CTF’s prairie director, Gage Haubrich, in a release.The province is paying down $1 billion of its debt this year, though it has another $17 billion or so to go.
Manitoba
Manitoba’s coming income tax relief is welcome, CTF said. The province is increasing the portion of tax-free income from about $10,000 to $15,000. It will also provide relief by adjusting income tax brackets.Its deficit is $363 million, and projected debt will reach $31 billion by the end of the year.
Atlantic Canada
Nova Scotia’s budget failed in planning for debt reduction, CTF said.The deficit for this year will be $279 million, and total debt is expected to reach $19.5 billion by the end of the year.
CTF also criticised the “bracket creep” tax hike in Nova Scotia. This happens when inflation bumps taxpayers into higher brackets, even though they can’t actually afford more. Governments should move the brackets with inflation, CTF said.
This year’s projected deficit is $160 million, bringing the province back into the red after a surplus of almost $800 million last year.
Regarding Prince Edward Island, CTF says, “Rather than present a budget, Prince Edward Island Premier Dennis King has plunged his province into an election.”
Quebec
The Quebec government is projecting a shortfall of $4 billion for 2023–2024. It does not expect to balance its budget until 2027.CTF did not comment on Quebec’s budget, nor on the territories, as of publication. Quebec’s Finance Minister Eric Girard presented the budget on March 21, and it features an income tax cut of 1 percent to each of the two lowest tax brackets.
Quebec will pay $9.5 billion in debt interest this year, equivalent to all the income tax paid by 1.5 million Quebecers, said MEI.