Economic rebound, higher federal transfer payments reduce Manitoba's deficit
A rebounding economy and higher federal transfer payments helped cut Manitoba's deficit by more than half, government fiscal numbers released Thursday show.
The deficit for the fiscal year that ended in March came in at $704 million, down from $1.6 billion originally predicted in the budget and from $2.1 billion the previous year. The numbers were contained in Public Accounts, the annual final tally of budget numbers reviewed by the auditor general.
One major factor was economic growth of more than nine per cent as COVID-19 restrictions were lifted and businesses reopened. That drove up income tax revenues from individuals and businesses.
"Retail sales last year soared 13.3 per cent," Finance Minister Cameron Friesen said.
Federal transfer payments were up as well, including a special one-time $145-million transfer to address surgical backlogs and other health issues.
On the downside, last year's drought saw production in several crops drop sharply. It also turned an expected profit at Crown-owned Manitoba Hydro into a $248-million loss as lower water levels reduced export sales of electricity.
Manitoba has been running deficits since 2009, with the exception of a $5-million surplus the year before the pandemic started.
The governing Progressive Conservatives have promised to balance the budget by 2028. Friesen said the Tories are focused on fulfilling that goal, but said the province is not out of the woods yet.
"There are a number of factors that are increasing risk -- the ongoing war in Ukraine, supply chain constraints that have been persistent, volatile markets," he said.
Another set of figures released Thursday suggested the government could make more headway toward a balanced budget in the current fiscal year.
The first-quarter fiscal update estimates the deficit this year will be $202 million -- less than half the $548 million predicted in the budget in April. The projection is partly based on wet weather, which has allowed Manitoba Hydro to export more electricity and forecast a surplus.
Friesen cautioned, however, that the projection is subject to change. Recent interest rate hikes have already prompted warnings from some economists that growth will slow, he said.
Even with a lower deficit, the province's overall debt is forecast to grow this year to $29.5 billion.
The Opposition New Democrats said the lower-than-expected deficit should prompt the government to put more money into health care. Emergency room wait times ballooned this summer and the demand for intensive care beds has remained above pre-pandemic levels.
"What I heard today is that there are resources available to help with the health-care crisis unfolding in emergency rooms and at hospitals across Manitoba," NDP Leader Wab Kinew said.
"Every day we're hearing stories about the struggle in our ERs, struggles in our hospitals."
The fiscal report also disclosed the salaries of public servants who make more than $75,000 a year.
Public health officials who helped guide the province's pandemic response were near the high end of the list.
Chief Public Health Officer Dr. Brent Roussin received $634,000 in total compensation in the last fiscal year, up from $428,000 the previous year. Dr. Joss Reimer, one of the leads on the COVID-19 vaccine team, earned $406,000, up from $396,000.
This report by The Canadian Press was first published Sept. 29, 2022.
CTVNews.ca Top Stories
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Decoy bear used to catch man who illegally killed a grizzly, B.C. conservation officers say
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
OPP responds to apparent video of officer supporting anti-Trudeau government protestors
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
An emergency slide falls off a Delta Air Lines plane, forcing pilots to return to JFK in New York
An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Loud boom in Hamilton caused by propane tank, police say
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.