The Manitoba government released its third quarter report for the 2018-19 fiscal year, indicating continued progress toward achieving balanced budgets based on summary financial results.
“We’re moving in the right direction. We’re making steady progress on deficit reduction and getting the job done,” said Finance Minister Scott Fielding. “For the third year in a row, we are expecting government expenses to be within budget but there is still significant work ahead to fix the province’s finances and return the budget to balance.”
Fielding noted the results affirm fiscal discipline and accountability to Manitoba taxpayers, as the province is forecast to come in $51 million under budget. A summary deficit of $470 million for 2018-19 is projected, which is an improvement of $225 million over the 2017-18 year-end deficit of $695 million.
“We are taking a careful and disciplined approach to expenditure management that protects front-line services and returns the budget to balance in our second term,” said Fielding. “Continued progress is being made by focusing on the bottom line across the broader public sector.”
Total summary expenditures are projected at $17.164 billion, which is $259 million below the budgeted amount. This includes expenditures from government departments and over 180 other reporting entities including regional health authorities, school divisions, post-secondary institutions, child and family services agencies, Crown corporations and other public-sector organizations.
“Despite the progress made, debt-servicing costs continue to negatively impact the province’s ability to invest in health care, education, social services and capital projects,” said Fielding. “Debt servicing costs are projected to exceed $1 billion in 2018-19 for the first time in Manitoba’s history.”
The minister noted all government departments except for one are projecting to be within budget. The Department of Health, Seniors and Active Living is projecting to be 3.5 per cent below budget, which reflects not only an accounting correction following the conversion of budgeting processes to recognize public-sector accounting standards, but also ongoing multi-year capital projects.
Long-overdue reforms designed to deliver better patient outcomes in a more sustainable manner have been introduced, allowing savings from system efficiencies to be reinvested into care, Health, Seniors and Active Living Minister Cameron Friesen said. While the forecast shows a $240-million underspend in the department, current spending on health care is hundreds of millions of dollars above the rate of the previous administration, he noted. In addition, per capita health spending continues to exceed the national average and the money invested in health continues to increase every year.
“We are undertaking the most substantial health-care transformation of our generation because we must. Our plan is increasingly showing we are moving in the right direction and repairing the services. We are getting better value for Manitobans’ money, we are sustaining the health-care system and we are doing a better job of developing budgets and reporting,” said Friesen.
“These results are reflected in the better services Manitobans are receiving. Emergency wait times are down, the number of physicians in Manitoba has increased, Rapid Access to Addiction Medicine (RAAM) clinics have been opened, and additional mental health and addictions beds have been opened.”
The third quarter report notes the fundamentals of the provincial economy remain strong with employment at record levels, commodity prices rebounding from the lows in 2015 and Manitoba leading the way in attracting private-sector capital investment, but we cannot forget there are storm clouds on the horizon, Fielding said. He noted rising interest rates, trade uncertainty and an unwanted federal carbon tax continue to pose risks to the fiscal stability of the province.
“As we continue to face the challenges we have inherited, I cannot overstate the importance of meeting our financial targets as we work to strengthen the economy and secure the stability of services for Manitobans today and into the future,” said Fielding.
Fielding noted this year’s request for additional spending authority, called a ‘special warrant’ and widely seen as a measurement of sound financial management, is at its lowest rate in 30 years. The achievement re-enforces a strong culture within this government of living within our means, he said.
The report can be viewed at gov.mb.ca.
