Federal equalization payments to Manitoba jump, NDP say use it for health
The Manitoba government is forecast to see its equalization payments from the federal government jump by $577 million in the fiscal year that will start in April, new federal figures say.
The total of $3.5 billion represents a 19 per cent increase from the current year and is roughly double the amount Manitoba received when the Progressive Conservatives took office in 2016.
Finance Minister Cameron Friesen was not available for an interview Monday. A written statement from his office said the increase is a result of greater economic growth and higher natural resource prices in the richer provinces.
"Even with equalization, Manitoba's fiscal capacity is still below the capacity of those resource-rich provinces," the statement read.
Opposition NDP Leader Wab Kinew said the government should use the money to improve health care and reach a collective agreement with allied health professionals -- such as X-ray technicians and laboratory workers -- who have been without a contract for years.
"That would be one step that I'd like to see happen right away, along with other steps to invest in health care, given the need that's out there, but also this windfall," Kinew said Monday.
Equalization is funded entirely by the federal government and is aimed at letting poorer provinces offer similar levels of service at similar taxation levels as richer ones.
The money is given out based on a complex formula that measures the ability of each province to raise its own revenues. Quebec, Ontario, the three Maritime provinces and Manitoba are scheduled to receive equalization payments in the 2023-24 fiscal year.
The equalization increase for Manitoba is far bigger than any annual jump in recent memory, and comes at a time when the province has been racking up deficits every year since 2009, with the exception of a small $5-million surplus in 2019.
Equalization is separate from federal health and social services transfer payments, which all provinces receive.
The Manitoba government predicted a $202-million deficit for the current fiscal year back in September. Friesen is expected to provide an updated budget forecast this week.
The Progressive Conservatives have promised to balance the budget by 2028. They face an election set for Oct. 3 of next year.
This report by The Canadian Press was first published Dec. 19, 2022.
CTVNews.ca Top Stories
'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
'Sophisticated' cyberattacks detected on B.C. government networks, premier says
There has been a "sophisticated" cybersecurity breach detected on B.C. government networks, Premier David Eby confirmed Wednesday evening.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Biden says he will stop sending bombs and artillery shells to Israel if they launch major invasion of Rafah
U.S. President Joe Biden said for the first time Wednesday he would halt shipments of American weapons to Israel, which he acknowledged have been used to kill civilians in Gaza, if Prime Minister Benjamin Netanyahu orders a major invasion of the city of Rafah.
Canucks claw out 5-4 comeback win over Oilers in Game 1
Dakota Joshua had a goal and two assists and the Vancouver Canucks scored three third-period goals to claw out a 5-4 comeback victory over the Edmonton Oilers in Game 1 of their second-round playoff series Wednesday.
Nijjar murder suspect says he had Canadian study permit in immigration firm's video
One of the Indian nationals accused of murdering British Columbia Sikh activist Hardeep Singh Nijjar says in a social media video that he received a Canadian study permit with the help of an Indian immigration consultancy.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Quebec premier defends new museum on Quebecois nation after Indigenous criticism
Quebec Premier Francois Legault is defending his comments about a new history museum after he was accused by a prominent First Nations group of trying to erase their history.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.