Despite rising costs of COVID-19, the province is projecting a lower than expected deficit this fiscal year.
Originally pegged at $2.938 billion in September Finance Minister Scott Fielding says the mid-year financial report shows the new deficit projection to be $2.048 billion. The reason for the lower projection is mostly due to a $648 million transfer payment from the federal government.
“Manitoba was hit with the first and second wave of COVID-19 in the fall and early winter, which is creating unprecedented challenges for our health-care system and the economy, and these challenges called for additional support measures to protect Manitobans and support local businesses,” said Premier Brian Pallister.
The projected deficit is the highest it has ever been in Manitoba.
According to the report provincial revenue is expected to be $372 million lower than originally budgeted due to the economic shutdown due to the pandemic. This also takes into consideration the amount of revenue lost from casino closures as well as income and other taxes.
“We will invest when and where it is needed, ensuring the public health response and individual and business supports are in place as we continue to battle COVID-19 and look ahead to vaccine deployment and the longer-term recovery,” said Fielding
Manitoba’s GDP is expected to drop by 4.6 per cent in 2020 but should see a rebound in 2021 by a projected 4.1 per cent.
© News4.ca 2020
