Fifth Straight Budget Deficit Forecasted in Manitoba at C$518 Million

This article was last updated on April 16, 2022

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The Western Canadian province of Manitoba has yet again forecasted a budget deficit of C$518 million for the fiscal year of 2013-14 on Tuesday, i.e. the fifth-straight deficit, while warning about the costs it might have to spend for a potentially major flooding this spring.

Manitoba has projected its spending up to C$14.8 billion, while the projection of revenue remains at C$14.2 billion, both of which are increased by 3 percent from last year. The province has indicated towards its intention to raise the sales tax to cover the deficit. Meanwhile, the estimation of projected deficit includes an approximated amount of C$150 million that is budgeted though not expected to be spent. The Leader of New Democratic Party and the government in Manitoba, Premier Greg Selinger, have targeted to balance the books by 2016-17. Whereas, the Finance Minister, Stan Struthers, claims that the two main threats, including a weak global economy and spring flooding, have lead us to the choice of raising taxes and fees or making deep spending cuts.

The province’s budget includes an amount of C$135 million to cover holdover expenses from past floods and possible damages from any floods this year. Previously in 2011, the whole cost of fighting floods and compensating property owners was about C$1 billion, i.e. almost half of which the Canadian government paid. Struthers stated that “we can’t stick our heads in the sand and pretend there’s no flood,” but “we can’t pretend we don’t have to pay for it.”