Documents show COVID-19 pandemic led to record-high deficit in Manitoba
The COVID-19 pandemic pushed Manitoba's deficit for the last fiscal year to a record $2.1 billion, but less red ink is expected this year as the economy rebounds.
The audited final report for the fiscal year that ended in March, released Thursday, said the government took in far less in income tax than expected as businesses were closed and the economy shrunk.
"It certainly was a unique year to be a finance minister," Finance Minister Scott Fielding said.
Gambling revenues plummeted as casinos and video lottery lounges were shut down under public health orders.
Casino revenues, for example, were down more than 80 per cent from the previous year. That was partially offset by a boost in online gambling and higher liquor and cannabis sales.
On the spending side, a few departments -- including health -- ran well over budget as the government responded to the pandemic. There were also hundreds of millions of dollars in new pandemic aid programs, such as wage subsidies for businesses and one-time cheques mailed out to seniors.
Some of the subsidy programs were underspent, however. The documents show very few people took up a subsidy offer for staffing in child care and other facilities. Wage subsidy programs for summer jobs for young people saw millions of dollars left on the table.
Leftover money will be moved to other areas as an anticipated fourth wave of the pandemic arrives, Fielding said.
"We're well-positioned to support businesses and individuals."
The Progressive Conservative government expects the deficit to shrink to $1.5 billion this fiscal year as the economy recovers. Federal transfers are expected to jump, partly due to a recent child-care funding agreement the province signed with Ottawa.
But challenges remain.
More than a year of dry weather has left rivers low and Crown-owned Manitoba Hydro unable to meet export targets. As a result, the government is expecting to $2 million in net revenue from the utility, down from $190 million predicted in the spring budget.
Manitoba has registered deficits in every year but one of the last 11 years. The province's net debt is forecast to approach a record $30 billion this year, equating to almost 40 per cent of gross domestic product.
This report by The Canadian Press was first published Sept. 23, 2021
CTVNews.ca Top Stories
Montreal doctors' breakthrough discovery about causes of cerebral palsy giving hope
A breakthrough discovery made by doctors at the Montreal Children's Hospital about the causes of cerebral palsy is giving new hope to one West Island family.
Weather alerts issued for 7 provinces, 1 territory
Warnings of up to 60 millimetres of rain and other alerts have been issued for seven Canadian provinces and one territory ahead of the Easter weekend.
Ontario homeowner on the hook for $27,000 when contractor severed power line
An Ontario man who built a garage on his property has been locked in a battle with his electricity provider for a year and half over a severed power line.
He didn't trust police but sought their help anyway. Two days later, he was dead
Jameek Lowery was among more than 330 Black people who died after police stopped them with tactics that aren’t supposed to be deadly, like physical restraint and use of stun guns, The Associated Press found.
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
Why Kim Kardashian is being sued for 'knockoff' furniture
The estate of minimalist contemporary artist Donald Judd filed a lawsuit against Kardashian this week, claiming the fashion and beauty mogul promoted 'cheap knockoffs' of his furniture designs.
Where is the worst place for allergy sufferers in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
Louis Gossett Jr., 1st Black man to win supporting actor Oscar, dies at 87
Louis Gossett Jr., the first Black man to win a supporting actor Oscar and an Emmy winner for his role in the seminal TV miniseries 'Roots,' has died. He was 87.