The Manitoba government is acting on the $1.6 billion deficit using a new fiscal strategy which Finance Minister Adrien Sala announced on Wednesday.
“We know the previous government failed to budget for their promises and left Manitobans with a $1.6-billion deficit,” said Sala.
“Our government has begun to rectify that with a strong plan to cover our expenses, cut spending on wasteful projects and design a path to balance.
“We are committed to reaching fiscal stability and we are scrutinizing promises made by the previous government to ensure they align with Manitobans’ priorities.”
Since taking office, the NDP government moved funds from the Diagnostic and Surgical Recovery Task Force to strengthen Manitoba’s health care front line. Plus, they announced 21 new beds at Grace Hospital this year.
Get daily Winnipeg news
Funds were allocated to address homelessness and provide temporary housing for newcomers in Manitoba.
The $41-million investment covers support through Manitoba Housing, private rentals, hotel rooms, and shelters for at-risk populations, the minister noted.
The gas tax break, saving Manitobans 14 cents per liter at pumps province-wide, will incur an $82-million cost for the fiscal year 2023-24 (until March 31).
The minister mentioned that the reduction in revenue will be balanced by implementing other spending reductions.
“In addition to reducing unnecessary spending, we’ve absorbed the work of the Economic Development Board back into the provincial department,” said Sala.
“This allows for proper oversight of projects because we know the board was not using proper channels to have funding approved.”