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Finance Minister Greg Selinger today released Manitoba’s third quarter financial report for 2008‑09 which projects $316 million in net income by year end, $220 million more than budgeted.

 

“Our third quarter forecast shows we are continuing on a steady track, but we know Manitoba is not immune to the significant economic challenges ahead,” said Selinger. “As we move forward, we will continue to balance priorities for long-term growth and work toward continued economic stability in order to better position our province for economic recovery.”

 

The third quarter financial update noted, on a summary basis, that year-end revenues are expected to be $490 million higher than budgeted while year-end expenditures are forecast to be $270 million higher. Improved revenues are due to $261 million in improvements in core government revenues, particularly income taxes which are up $201 million and improved results of $229 million from Manitoba Hydro, Manitoba Public Insurance, the Manitoba Agricultural Services Corporation and other Crown entities.

 

Projected expenditures reflect continuing pressures on core government operations, mainly in agriculture for income stabilization and flooding support, nurse and doctor wage agreements, increased costs for housing and child protection, and increased forest-fire suppression costs. So far this year, agriculture support programs represent the largest over expenditure in government.

 

Selinger said Manitoba’s fiscal performance in 2008-09 will position the province well to meet the serious challenges ahead.  The forecasted $316-million summary surplus includes all of the requirements included in the recently approved special warrant totalling $280 million.

 

The province is accelerating the transfer of $40 million in infrastructure funding to the City of Winnipeg for road upgrades and rapid transit funding. This funding accounts for a larger‑than‑budgeted Fiscal Stabilization Account (FSA) draw, increasing the 2008-09 draw to $98 million from $60 million. As budgeted, the draw includes $47 million in funds advanced previously by the federal government for wait-time reduction and health-related programs.

  

“We felt it was better to have this infrastructure support in place with the city as quickly as possible,” said Selinger. “Even with this additional draw from the FSA, Manitoba’s financial outlook remains positive and our budget remains on steady track.”