Lawsuit settlement, collective agreements and Hydro losses drive up Manitoba deficit
WINNIPEG -
New documents show the Manitoba government posted a deficit in the last fiscal year of just under $2 billion -- the largest non-pandemic deficit in the province's history -- in the fiscal year that ended in March.
The final audited results for the 2023-24 fiscal year show a major factor was a drop in revenue from Crown-owned Manitoba Hydro, where dry weather and low water levels turned an expected profit into a loss.
On the spending side, new collective agreements in the public sector and a lawsuit settlement over payments to kids in the child welfare system drove up costs.
Manitoba has run deficits in every year but two since 2009, and the NDP government has promised to balance the budget by 2027.
Finance Minister Adrien Sala says the government is undertaking a review in order to meet that target.
The province is getting some help this year in the form of equalization payments from the federal government, which are rising by 24 per cent, or $840 million.
This report by The Canadian Press was first published Sept. 27, 2024
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