Manitoba sees deficit drop to $1.3B, but uncertainty ahead: quarterly report

The Manitoba government has seen some improvements when it comes to finances, but uncertainty ahead due to U.S. President-elect Donald Trump’s recent victory appears to have slowed any celebration.

“Our government is working across industries to grow the economy, increase productivity and attract more investments to our province,” said Minister of Finance Adrien Sala in a news release on Manitoba’s second quarter report. “We are on the path to balancing the budget.”

The sentiment was backed by the fact Manitoba’s deficit has fallen by more than $662 million, to roughly $1.3 billion as opposed to the predicted $1.9 billion.

The minister of finance says while there have been improvements, there’s still “more work to do.”

“Manitobans can feel confident our government is preparing for potential economic pressures and will be ready to respond with a plan to protect jobs and our economy,” he said.

One of the largest over expenditures continues to be health care, with the quarterly report detailing how the province is still spending $438 million in the sector more than forecasted.

Manitoba Minister of Health, Seniors and Long-term Care Uzoma Asagwara said their government is still dealing with mismanagement in the system from previous administrations.

“Better management means better patient care and every dollar we lose sight of is a dollar not spent at the bedside,” said Asagwara.

“Unlike the previous government, which made across-the-board cuts, fired front-line staff and jeopardized patient care, our government is taking a different, fiscally responsible approach. I will always stand with patients and front-line health-care workers.”

Justice, advanced education and training and housing addictions and homelessness are some of the other sectors where the government is spending more than forecasted by over $100 million.

And while Minister Sala says overall the government is moving in the “right direction” on the deficit, the report also detailed some rocky waters ahead, especially as Trump says he’ll be implementing 25 per cent tariffs on both Canada and Mexico once sworn into office.

“Considerable uncertainty remains on the horizon, as future economic activity could depart from current expectations due to several downside and upside risks,” said the report.

“Given that more than 70 per cent of Manitoba’s exports are to the U.S., potential broad-based U.S. tariffs on Canada could significantly impact the province’s trade and slow economic growth or precipitate a recession.”