WINNIPEG -- Manitoba is getting a bit of an early Christmas present for its bottom line, though its deficit is still the highest in provincial history.

Ravaged by COVID-19, the Pallister government was projecting a $2.9 billion budget deficit for 2020/2021 as of September.

Numbers released Thursday morning as part of the mid-year fiscal update shows an anticipated improvement to just over $2 billion.

“Manitobans live within their means, because they care about today, and because they care about tomorrow too,” Premier Brian Pallister said. “Your government has done the same, and we’re going to continue to do the same.

“We’re going to do what Manitobans do. We’re going to shop smarter, we’re going to invest more wisely, and we’re going to focus on the people most in need.”

A news release calls the change “modest” and attributes the lower figure to $648 million in federal funds.

“That $648 million accounts to about 20 per cent of the total commitment, which the province is footing about 80 per cent,” Finance Minister Scott Fielding said, adding he appreciates the federal support.

Revenues are projected to be down by $372 million from the budget because of the economic shutdown.

The outlook also said the province is spending $3.2 billion related to the pandemic, including $522 million on personal protective equipment (PPE) and additional staffing costs.

“Manitoba’s spending is estimated as the third-highest level amongst provinces on a per capita basis,” Fielding said, who added COVID-19-related health expenditures is approximately $622 million above what was initially budgeted.

During the update, the province touted several business support programs created to help people during the pandemic, such as the Gap Protection Program.

“Our business support programs have been broad-based, they’ve been easy to access, they’ve been flexible, and quite frankly, they’ve been based on consultations with the local business community and designed to meet the needs of local businesses,” Fielding said.

NDP Leader Wab Kinew called the financial report an “austerity agenda,” saying the government is committed to it, even while the pandemic is still impacting Manitobans.

“This government has put forward a fiscal update that reflects what we already know about them,” Kinew said. “They failed to prepare for the second wave of COVID-19, and in spite of being told time and time again that they’re failing to do what’s right for the people of Manitoba, this government continues to put money ahead of people.”

Kinew said the province needs to make investments in seniors care, education, health care and creating good jobs across the province.