Finance Minister Stan Struthers released Manitoba’s second quarter financial report which provides information on the government’s progress to date and contains year-end projections to the end of the budget 2012-13 fiscal year.
“We’ve worked hard to reduce spending responsibly while protecting the things that matter most to families, but uncertainty is the new norm for provinces across Canada,” said Struthers. “In Manitoba, we’ve seen cost pressures in departments that are focused on some of our most vulnerable people. We can’t solve these pressures with deep cuts, but we can keep working with the things that are in our control to narrow the gap between our expenses and revenues.”
The Quarterly Financial Report projects a deficit of $567 million, a $432-million improvement over last year, though $107 million greater than budgeted due to cost pressures in family services, public safety and fighting forest fires.
Highlights from the report include:
• 15 of 18 government departments are projected to end the year under budget;
• $115 million in in-year spending reductions have been found, 90 per cent of the $128 million target set out in the spring budget, up from $66 million at first quarter; and
• $75 million in assets sales have been made, meeting the target set out in the spring budget.
The minister noted that revenues are projected to increase 0.3 per cent over last year.
“With so much uncertainty in the global economy, every province is grappling with deficits or declining revenues. By reducing regional health authorities, merging Crown corporations and more efficiently delivering government services, we are reducing spending this year and in to the future, but we aren’t stopping here,” said Struthers. “We will continue to adopt best practices that will help maximize value and reduce waste, by focusing on the things that matter most.”
The minister said that Manitoba’s forecast debt this year as a share of the economy has improved to an estimated 27.1 per cent and is the fourth-lowest among the provinces, well below the federal government, and Manitoba’s forecast deficit this year as a share of the economy is estimated at one per cent, sixth lowest among the provinces, also well below the federal government.
The Manitoba government will also make $184 million in debt-related payments from the fiscal stabilization account this year as budgeted, Struthers said.
