On Thursday March 26, 2020, Manitoba Premier Brian Pallister announced a proposal that could see lower borrowing costs for all Canadian provinces.

Pallister said that he expects that due to the pandemic the “rainy day” fund could be depleted by the end of June which would force Manitoba to have to borrow upwards of five billion dollars before the end of the year.

“Manitobans and Canadians are facing a historic pandemic that poses significant public health and economic challenges”, Pallister said. “This is a time to unite, this is a chance for the federal government to help Manitoba and all other provinces obtain the investments needed to secure our public health-care services for all Canadians.”

Pallister’s proposal would see the federal government establish an emergency credit agency to borrow money on behalf of the provinces. The Federal government is able to borrow at interest rates that are lower than individual provinces can get. The premier said that by doing this provinces would be able to save billions of dollars annually in interest costs.

Pallister was clear to point out that he is not asking for a handout but rather a way to work together to reduce the costs of borrowing.

The premier also noted that the original plan to reduce the PST to 6% this July would have to be put on hold.

© News4.ca 2020