New provincial legislation will create incentives for government to stay in the black.

The Fiscal Responsibility and Taxpayer Protection Act sets financial penalties for ministers who fail to achieve budget targets.

"We think that these measures are needed in the Province of Manitoba after years and years of the Provincial government simply not hitting its spending targets," Finance Minister Cameron Friesen says.

The result of which is a debt that's doubled in less than eight years, and a deficit of almost $900 million.The Province also pays almost $1 billion in debt service charges every year.

"That's money that cannot go for schools, hospitals and roads, it goes to money lenders," Friesen says. "We need to clean that up. We need to go in the right direction, and we believe that this bill will help get us there."

Each year a deficit occurs (more than the baseline amount projected for the 2017-18 budget or the lowest actual annual deficit amount for any fiscal year beginning with 2017) 20 percent of all ministerial salaries would be withheld. The amount would increase to 40 percent if two consecutive years of deficits occur. If the deficit would exceed target levels by $100 million or more, the entire annual ministerial salaries would be forfeit. Likewise, a proportional amount would be withheld if deficit balloons past target levels, but below $100 million. For example, a deficit exceeding legislated requirements by $80 million would mean 80 percent of salaries withheld.

Once a deficit has been eliminated, government would still be required to maintain a balanced or surplus budget.

"Fiscal management and deficit reduction remain a top priority of our government as we make the reforms necessary to set the course to fiscal recovery," Friesen says. "This legislation would require government to demonstrate real progress toward balance through progressively smaller deficits, while ensuring the rules around compensation to cabinet ministers reflect our commitment to returning to balance."

The legislation would also restore residents' right to vote on major tax increases.

"Government has choices to make and they should be accountable to citizens when they are contemplating a large tax increase," Friesen says.

It requires a non-binding referendum before the government introduces any bill to increase tax rates under The Health and Post Secondary Education Tax Levy Act, The Income Tax Act or The Retail Sales Tax Act.

Manitoba had similar protections in the 1990's but Friesen says much of the legislation had been amended or removed by the previous government.