Manitoba’s deficit may be lower than forecast

The Manitoba government says its deficit this year may come in a little lower than expected.

A budget update is predicting a deficit of $518 million for the fiscal year that ends in March – down $3 million from the original forecast in last spring’s budget.

The Progressive Conservative government says income tax revenues from individuals and corporations are running higher than expected.

On the spending side, departments including health, agriculture and justice are coming in with slightly lower expenditures than first thought.

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Finance Minister Scott Fielding says the budget remains on track but there are possible challenges coming up, including rising interest rates.

The Tories have promised to eliminate the deficit by 2024.

WATCH: Finance Minister Scott Fielding said earlier this year the numbers show the government is on track to keep its 2016 election promise to balance the budget by 2024.

0:49 Manitoba records lower-than-expected deficit