The Manitoba government released its mid-year report for the 2019-20 fiscal year, which indicates the province is on the right track to financial recovery.
“Manitoba is showing continued progress toward balancing the budget and steadily reducing the deficit,” said Finance Minister Scott Fielding. “The mid-year report serves as our first real snapshot of the fiscal year and shows revenues are higher than anticipated due to our resilient economy.”
At mid-fiscal year, the deficit is projected to be $350 million, slightly ahead of the government’s target. Fielding noted this would be the fourth consecutive year that Manitoba has over-delivered on its budget execution. The province remains on track to eliminating the deficit in 2022-23, as set out by a revised path in 2018-19 Public Accounts.
Compared to the budget, slight improvements are forecast in both revenue and expenditures. These improvements have been offset by a $50-million contingency for non-cash accounting charges expected this fiscal year, which could include assets that need to be written down or reserves that need to be increased.
“These charges all relate to past financial mismanagement, as we continue to clean up the mess in our financial records associated with years of bad decisions by the previous government,” said Fielding.
Budget 2019 committed at least $1 billion in strategic infrastructure spending, such as roads and bridges, flood protection, hospitals, schools, universities and colleges. The mid-year report forecasts $1.373 million on infrastructure. The minister noted that government continues to ensure value for money on procurement and has consolidated many capital delivery functions to create efficiency.
“The province continues to exercise due diligence in planning and implementing many large-scale, long-term health care and education capital projects, some of which have been completed earlier than originally budgeted,” Fielding said.
The minister noted S&P Global Ratings recently revised its outlook for Manitoba to positive from stable and recognized the province delivered better-than-expected financial results in fiscal 2019 and is expected to keep progressing toward fiscal balance.
The province has refreshed its approach to make fiscal updates more meaningful and transparent, Fielding said. The mid-year financial report can be viewed at gov.mb.ca.
