Saskatchewan and Manitoba face huge debt under current policies: report

Feb 27, 2020 | 11:51 AM

OTTAWA — Parliament’s budget watchdog says Saskatchewan and Manitoba face huge increases in their debt loads unless the provinces change their fiscal policies or Ottawa increases transfer payments.

Parliamentary budget officer Yves Giroux says Manitoba and Saskatchewan would each need to cut more than $2 billion from annual spending or increase taxes to keep their debt-to-GDP levels sustainable.

One alternative, he says, is higher annual increases in transfer payments from the federal government.

Giroux says all provinces face pressure from an aging population and increased health-care costs.