December 5, 2023
Manitoba Government Releases Second Quarter Fiscal and Economic Update
– – –Provincial Deficit Swells to Over $1.6 Billion, Worst Non-Pandemic Shortfall in Manitoba History
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The Manitoba government has released the 2023-24 second quarter report, showing the previous government left a significantly larger deficit than what was shared with Manitobans in Budget 2023, Finance Minister Adrien Sala announced today.
“The previous government was not honest with Manitobans about our province’s fiscal health,” said Sala. “They failed to account for cost pressures, inflation and expenditures, and refused to be transparent with Manitobans. The path ahead to recover from the previous government’s reckless spending and mismanagement will be challenging but we are committed to stabilizing the province’s finances.”
Manitoba’s forecasted deficit ballooned to $1.6 billion, up from the $363-million deficit reported in Budget 2023 and in the government’s first quarter report published July 28, noted the minister. In just six months, the province’s deficit increased by over $1.2 billion, said the minister, who noted a third-party audit of the previous government’s spending is currently underway.
A number of factors contributed to the deficit. The minister said the previous government did not account for the true fiscal reality of Manitoba Hydro’s revenues, made capital promises that were never approved and did not account for inflation, scheduled health-care bargaining and other internal service adjustments.
The minister also noted the 2024-25 pre-budget consultations will begin in January, where Manitobans will be able to engage and provide their input into next year’s budget.
A mid-year fiscal update will be released in the coming weeks, he added.
The second quarter report for the 2023-24 fiscal year can be viewed online at: https://gov.mb.ca/government/finances/fiscalupdates.html.
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