WINNIPEG: A recent "Fast Facts" release from Manitoba Finance is playing fast and loose with the truth by circulating inaccurate information on the ratio of program expenditures to tax cuts outlined in the 2001 Manitoba budget.

"The government's 3:1 spending to tax cuts ratio is off by a country mile," noted Victor Vrsnik, CTF provincial director. "The Finance Department misrepresents the equation by including tax cuts announced from last year without balancing the equation with new spending increases from last year as well."

According to the provincial government's "summary of 2001 tax measures" and their "operating expenditure estimates," outlined in the 2001 Manitoba Budget, the Canadian Taxpayers Federation estimates that the new expenditure to new tax cuts ratio is 6:1.

Note: According to the Budget's "summary of 2001 tax measures" (p. D4, 2001 Manitoba Budget), the "net change" for the 2001 budget is a $4 million tax increase. This is largely due to the inclusion of the $52 million water power rate increase. The CTF did not include this back door tax hike in its ratio equation. Were it included, the new expenditure to new tax cuts ratio would be 52:1.