KLEIN: The dangers of unchecked government hiring and spending

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Manitoba is facing a troubling economic reality. The provincial debt is set to reach a staggering $35.4 billion, an increase of $1.9 billion from the previous year.

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This growing debt is a pressing issue that will cost taxpayers $2.3 billion in interest payments this year alone.

Amid this fiscal crisis, the NDP government has opted to hire 694 new employees since their election in October, at a cost of approximately $40 million annually. This decision, along with similar spending patterns at the city and federal levels, raises serious concerns about the sustainability of government spending and the equitable distribution of resources.

The Canadian Taxpayers Federation’s report highlights a stark contrast in compensation between government and private sector employees. On average, a government employee earns 8.5% more than their private sector counterparts and retires 2.1 years earlier.

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This disparity not only questions equity and fairness in the workforce but also points to an inefficient use of taxpayer money. Employee compensation is the largest line item in the government’s budget, with $9.2 billion spent on salaries in 2022, making up 42% of total government spending. This enormous expenditure is unsustainable, especially when juxtaposed with the growing provincial debt.

Manitoba’s fiscal woes are not isolated. The City of Winnipeg, for instance, spends over $200 million annually to service its debt. This is money that could be better used for services, infrastructure, public safety, and other critical areas. Yet, instead of addressing these pressing needs, both the provincial and city governments continue to expand their payrolls, further straining their budgets.

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It’s no secret that the NDP is known as the tax-and-spend party. Premier Wab Kinew has convinced many that he is focused on business and growing the economy. However, it has been almost 10 months since the NDP came to power, and no major economic announcements have occurred.

Instead, the focus has been on hiring more political staffers and increasing spending accounts. This trend is not limited to Manitoba. The federal government has also hired 10,000 more employees, reflecting a broader pattern of fiscal irresponsibility.

The NDP’s decision to reinstate the gasoline tax will likely cause inflation to skyrocket, potentially making Manitoba’s inflation rate the highest in the country. However, the NDP enjoys an extended honeymoon period following the election, much of it due to the temporary removal of the gas tax.

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Continuing this tax break comes with significant costs, impacting the affordability of living in the province. If the tax is not reinstated, we risk further deterioration of our infrastructure due to a lack of revenue or, worse, sinking deeper into debt and higher interest payments. This pattern of governance is all too familiar under the NDP, and it is unsustainable.

Small businesses are the lifeblood of Manitoba’s economy, yet the government has overlooked them. Winnipeg remains the only major centre with a business tax, and few incentives have been offered to support their growth and development.

The NDP’s failure to create a conducive environment for entrepreneurship risks undermining the very foundation of Manitoba’s economic prosperity. Small businesses drive innovation, create jobs, and contribute significantly to the local economy. Neglecting them in favour of expanding government payrolls is a misguided priority.

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The Wab Kinew-led NDP government has failed to inspire confidence in fiscal management and economic development. To date, their actions do not address the pressing needs of all Manitobans but focus on select groups, further exacerbating inequality.

Questionable spending, a lack of fiscal responsibility, and failure to prioritize key areas such as economic development reveal a government out of touch with the real needs of its citizens.

The current path of unchecked government hiring and spending is unsustainable and poses a significant risk to the province’s economic stability.

Prioritizing fiscal responsibility, supporting small businesses, and ensuring that taxpayer money is used efficiently and equitably is crucial.

— Kevin Klein is a former Tory cabinet minister, a former city councillor and is the President & CEO of Klein Group Ltd.

Have thoughts on what’s going on in Winnipeg, Manitoba, Canada or across the world? Send us a letter to the editor at wpgsun.letters@kleinmedia.ca

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