Paying Down the Debt

• Budget 2009 provided for a $20 million payment on debt and pension liabilities. Over the last 10 years, we have paid $944 million on the debt and pension liabilities - the largest payment in Manitoba’s history.
• We are the first government in Manitoba to address the pension liability. This fiscally responsible approach has earned Manitoba six credit upgrades since we took office:
  

  Moody’s Investors Service - Aa1

  DBRS (Dominion Bond Rating Service) - A (high)

  Standard & Poor’s - AA- (positive)

Lower debt-to-GDP ratio

Since 1999 net debt-to-GDP has decreased more than 25% from 31.5% to 23% this year. The net debt-to-GDP ratio measures the province’s ability to carry its debt while continuing to invest in the infrastructure and services that Manitobans need and expect. The Auditor General has clearly stated that net debt, the figure that tallies our financial liabilities minus our financial assets, is what matters.

Lower debt-servicing costs

• Thanks in large part to sound fiscal management, this government’s debt- servicing costs are down over 50% from 1999 at 6 cents of every dollar of revenue, down from 13.2 cents in 1999/2000.

Bigger Fiscal Stabilization (Rainy Day) Fund

• The Rainy Day Fund has nearly quadrupled since 1999 to $864 million from $226 million.

Higher accounting standards

• Under more rigorous and comprehensive accounting rules recommended by the Auditor General and introduced by the Doer government, all new capital investment must be accounted for as debt. Our government is making substantial investments in health facilities, schools and roads.

What they’re saying....

Moody’s Investors Services 17 June 2009

• "Manitoba’s Aa1 rating reflects sound fiscal policy that has helped the province generate positive consolidated outcomes and realize modest improvements in its debt position over the past several years."


• "Manitoba’s fiscal plan remains prudent and in line with the high investment-grade rating assigned to the province."


• "In our view, the province has sufficient flexibility to withstand current economic turbulence and, as such, we do not anticipate any permanent deterioration in the province’s financial position."

DBRS (Dominion Bond Rating Service) 25 September 2009

• "[T]he Province is weathering the recession better than most of its peers. Manitoba’s continued spending discipline and its resilient economy has helped to limit fiscal erosion and debt growth, leaving the Province well positioned to further improve its already sound credit profile when the economic recovery gains momentum.

Figures current as of November, 2009

Adobe Acrobat version.