Manitoba projects $1.3B deficit in mid-year fiscal update

WINNIPEG — The Manitoba government is expecting to post a deficit of more than $1 billion for the fiscal year, with overspending in health care driving the projected shortfall.

Numbers from the province’s mid-year fiscal update show the government is forecasting a deficit of $1.3 billion – an increase from the $796 million that was tabled in the 2023-24 budget.

Finance Minister Adrien Sala said despite the government not reaching its goal, it’s an improvement from the nearly $2-billion deficit that was posted last year.

“We’ve got more work to do. There’s always more work to do in continuing to improve … it shows that steady progress towards our balanced budget in that final mandate year,” he told reporters on Monday.

The biggest factor in the increased deficit is partly due to overspending in health care.

The government is forecasting $438 million in overspending in that department, driven by high costs in health authorities.

“Ultimately, it’s the patients and the front lines who suffer from these deficits, and this is why things have to change,” said Health Minister Uzoma Asagwara.

“Our priority is making sure that folks who are the furthest removed from care at the bedside — that we’re not prioritizing those roles any longer.”

Asagwara said the government has already eliminated 30 corporate positions at Shared Health, the province’s health organization. These included contract workers who lived out of province.

The government has also hired third-party accountants to do financial audits of most health authorities. Asagwara said the audits look at budgeting and spending practices and will be released publicly.

Another department that has seen overspending is Justice, which is forecasting $51 million in spending because of increased costs in correction services related to overtime and workers compensation board costs.

Premier Wab Kinew has also talked about looking for areas in which the province can tighten its belt.

The province has looked at streamlining procurement processes and has eliminated some projects put in place by the previous Progressive Conservative government, said Sala.

Manitoba has run deficits in every year but two since 2009, and the NDP government continues to promise a balanced budget by 2027.

“We know that if we don’t deliver on that balanced budget target, we’ll be more challenged in delivering on better health care, better affordability, so that is an incredibly important goal that we’re committed to delivering on,” said Sala.

This report by The Canadian Press was first published Dec. 16, 2024.

Brittany Hobson, The Canadian Press