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
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels will take the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
NEW Why these immigrants to Canada say they're thinking about leaving, or have already moved on
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
NEW Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.
Defence attacks Stormy Daniels' credibility as she returns to the stand in Trump's hush money trial
Stormy Daniels will return to the witness stand Thursday in Donald Trump's hush money trial as the defence tries to undermine the credibility of the porn actor's salacious testimony about their alleged sexual encounter and the money she was paid to keep quiet.
With contactless screening tech, this Toronto startup hopes to catch breast cancer early — and save lives
Amid evidence of rising breast cancer rates among young women in Canada, one Toronto startup is offering a contactless and radiation-free device that can help doctors identify suspicious changes in breast tissue. The company, Linda Lifetech, says this can lead to earlier detection of breast cancer.
Tornadoes tear through southeastern U.S. as storms leave 3 dead
Forecasters warned a wave of dangerous storms in the U.S. could wash over parts of the South early Thursday, a day after severe weather with damaging tornadoes and large hail killed at least three people in the region.
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.