Manitoba to receive 24 per cent boost in federal equalization transfer next year

The Manitoba government is set to receive a major boost in federal equalization payments next year.

New figures from the federal government show Manitoba is expected to receive $4.3 billion in equalization for the fiscal year that will start in April -- a 24 per cent increase from the current year.

It is the largest increase going back more than a decade, according to the federal figures.

Equalization is a federally funded program that offers poorer provinces money so that they can offer services and tax rates similar to richer ones.

It is based on a complex formula that assesses the ability of each province to raise its own revenues, and all provinces east of Saskatchewan are forecast to receive equalization payments next year.

The extra money to Manitoba comes at a time when the province is forecasting a $1.6-billion deficit this year.