BALANCED BUDGET
Manitoba’s auditor general, in releasing his report on the Audit of the Public Accounts on Jan. 5, 2005, revealed that the Province ran a $604-million deficit for the year ended March 31, 2004. However, the provincial government in a news release dated Sept. 30, 2004, indicated: “Manitoba’s public accounts show that the Province achieved a positive operating balance of $13 million for the 2003-2004 fiscal year under the terms of balanced budget legislation.”
As a result, the auditor general urged that balanced budget legislation be strengthened and recommended that:
- Summary financial statements should be used to determine compliance with balanced budget legislation
- This incorporates the use of generally accepted accounting principles (GAAP)
- Reflects the annual operations of all government activities
- Is the same basis as federal government and most other provinces
- Eliminate the operating fund (special purpose) financial statements
- Incomplete annual results - fails to incorporate the operation of all government organizations
- Non-GAAP financial statements
- Creates confusion by having two sets of financial statements
Winnipeg Chamber of Commerce Recommendation:
- Restore fiscal and legislative accountability and transparency for all Manitobans by immediately adopting the recommendations of Manitoba’s auditor general and amending the balanced budget legislation to provide a complete fiscal position of the Province.
Adopted by The Winnipeg Chamber of Commerce board of directors, January 2005