March 12, 2008
Legislature To Reopen April 9 With Introduction Of 2008 Budget
– – –Third-quarter Report Released for 2007-08, Budget Continues on Track: Selinger
Finance Minister Greg Selinger announced today the Manitoba legislature will reopen April 9 with the introduction of the 2008 budget. Manitoba’s third-quarter financial report for 2007-08 was also released today showing that Manitoba’s budget continues to be on track.
The government will continue to build on Manitobans’ priorities and move our province forward,” said Selinger. “The 2008 budget will invest in important social programs, invest in the green economy and maintain our affordability advantage. We must also continue to be vigilant because of economic uncertainty in the United States which is putting pressure on our budget.”
Manitoba’s third-quarter financial report for 2007-08 projects an improved summary surplus and a positive result for core operations after a $110-million debt repayment.
The surplus on a summary basis is projected to be $329 million, up from the $175 million forecast in the budget and higher than projected in the second quarter. The increase is the result of higher income projections from Manitoba Hydro and the Manitoba Agricultural Services Corporation. The third-quarter year-end projection forecasts a $3-million positive balance for core government operations after the $110-million debt payment.
In the third-quarter report, year-end forecasts project a revenue increase in core government expenditures mostly due to revised income, sales and mining tax revenue. Federal transfers are expected to be lower than projected mostly due to slower-than-anticipated resolution of the renewal of the agreement for infrastructure, partly offset by funds from the federal government’s Community Development Trust.
Core government expenditures are also forecast to be higher due to a 33.6 per cent increase in funding for the department of Agriculture including increased payments primarily under the Canadian Agriculture Income Stabilization Program and new funding for a ruminant sales assistance program. Other expenditures, as previously reported, include $40 million to fulfil the capital commitment for the Canadian Human Rights Museum, increased emergency expenditures related to forest-fire suppression activities and pressures in Manitoba Family Services and Housing for improved programming related to child welfare and housing projects, in Manitoba Justice to address increasing costs in corrections and a 1.1 per cent increase in Manitoba Health including the cost of medical remuneration.
These additional costs are reflected in the recently-approved special warrant for the 2007-08 budget year.
An interim special warrant of $3.2 billion for operating requirements and $204.8 million for capital requirements has also been approved to provide for expenditures until the budget and estimates for 2008-09 can be approved by the legislature later this spring.
As budgeted, the only draw from the Fiscal Stabilization Fund for 2007-08 will be for federal funds allocated for health wait-time reductions. Overall, the fund is projected to have a balance of
$683 million at the end of the year, up from the forecast in the budget and higher than projected in the second quarter.
$683 million at the end of the year, up from the forecast in the budget and higher than projected in the second quarter.
“Manitoba’s finances remain positive and on track for a higher-than-budgeted summary surplus,” said Selinger. “We continue to reduce the net debt and are making important tax reductions including increasing the refundable portion of the Manufacturing Tax Credit, while making significant investments in health care, child welfare and education.”
The house is in the second session of the 39th Manitoba legislature. There are presently 36 New Democratic Party members, 19 Progressive Conservatives and two Liberal members in the 57-seat Manitoba legislature.
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