September 28, 2018
Province Releases Public Accounts for 2017-18 Fiscal Year
– – –Continued Progress on Deficit Reduction: Fielding
The Manitoba government is making progress in reducing the province’s deficit, Finance Minister Scott Fielding announced today with the release of the government’s public accounts for the 2017-18 fiscal year.
Continued improvement in the province’s fiscal position is due to the government’s responsible approach to expenditure management, the minister said. He noted the importance of meeting budget targets in making further progress toward returning to balanced budgets.
“We’re fixing the finances and moving in the right direction,” said Fielding. “Year after year, the previous government exceeded its deficit projections with reckless overspending, putting the province further in debt. Since forming government over two years ago, we have implemented better budgetary practices and are putting Manitoba back on a path to sustainability.”
The 2017-18 year-end financial results show a summary deficit of $695 million, which is $145 million lower than the 2017-18 budgeted deficit of $840 million. Fielding noted the province’s deficit was projected to climb to $1.7 billion by 2019 if left unaddressed.
Debt-servicing costs continue to be a concern in the government’s pursuit of financial recovery, the minister said. The 2017-18 results show $952 millon has been spent to service the province’s debt, and debt servicing costs are projected to exceed $1 billion in 2018-19 for the first time in Manitoba’s history. This is a direct result of increased debt and three consecutive credit rating downgrades due to 17 years of fiscal mismanagement by the previous government, he noted.
“Taxpayer dollars spent servicing debt is money that cannot be invested in priority areas like in health care, education, social services and infrastructure,” said Fielding. “We continue to take action to reduce the deficit in a measured and responsible way, because we understand that fiscal sustainability is essential to protecting the services Manitobans value and rely on.
“We have substantially increased funding for health care and invested $386 million more last year than the previous government budgeted in 2015,” Fielding added. “In addition, we invested $288 million more in the Department of Families and $399 million more in education, and have done so while continuing to lower the deficit. We remain on track to balance the budget in our second term.”
The minister noted the province is increasing its transfer into the Fiscal Stabilization Account, or rainy day fund, to $50 million for 2017-18. This increase from the initial budgeted amount of $10 million reflects prudent fiscal management and planning for unforeseen emergency expenditures, he added.
View the 2017-18 public accounts at www.gov.mb.ca/finance/publications/financialreports.html.
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