Through fiscal discipline and targeted front-line investments over the past four-and-a-half years, the Manitoba government is reporting a modest surplus in its 2019-20 year-end financial results.
Premier Brian Pallister says four years ago, his party was presented with a monumental challenge and a monumental opportunity, “After the previous administration doubled our debt, raised taxes and depleted the rainy day fund, we committed to Manitobans that we would fix the finances, repair services and rebuild our economy, and we kept our word. We inherited a deficit that was on pace to exceed $1.7 billion by today and we tackled that challenge by making the necessary decisions to strengthen services on the front line, by finding waste, overlap and duplication.”
With prudence, determination and foresight, the province was able to achieve balance while making record investments in health care, education and families, the premier noted.
The Manitoba government released its public accounts for the 2019-20 fiscal year with a $5-million surplus, which is $365 million better than the $360-million deficit estimated in Budget 2019.
As committed in Budget 2019, the province reduced the retail sales tax to seven per cent from eight per cent July 1, 2019. It replenished the rainy day fund to $800 million, which the minister noted remains available should the need arise as the COVID-19 pandemic continues and is an important piece of financial security to assure Manitobans the province is better prepared to weather this storm.
However, despite Manitoba’s relative successes, the forecast predicts the pandemic will create significant public health and economic impacts, even if a vaccine becomes widely available in 2021. Projections for the 2020-21 fiscal year show a deficit of $2.9 billion.
View the 2019-20 public accounts and 2020-21 first quarter report at:
https://www.gov.mb.ca/government/finances/index.html.
The province will release a 2020-21 second quarter report in December.
