Deficit $51M lower than expected in Manitoba, higher revenues from corporate taxes

The Progressive Conservative government is predicting to end the current fiscal year $470 million in the red, down from $521 million projected in last year’s budget.

The government says it’s receiving higher than expected revenues from corporate income taxes and other levies.

The province is also spending less than expected on health, justice, education and other areas.

However, they were quick to state that the savings do not equate to reduced investment in healthcare.

“I want to be really unequivocal in our comments. Our government is spending hundreds of millions of dollars more in healthcare than the previous NDP government,” Minister of Finance Scott Fielding said. “Close to $296 million.”

Health Minister Cameron Friesen said the progress on deficit reduction is a result of savings in healthcare expenditures.

“We are forecasting a $240 million under-expenditure in the health department,” Friesen said.

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“We are investing more money in the healthcare system than at any point in Manitoba’s history… health spending will be over $50 million over last year. Year to date expenditures for the first three quarters of this year are $76 million higher than for the same period one year ago in 2017/18.

“Any way you look at it, the investments that our government is making in the area of health care are going up, up, up.”

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Health spending alone is running 3.5 per cent – or $240 million – below budget, although the province says half of that is due to accounting changes at regional health authorities.

Friesen said not only was the former government’s system unsustainable, they did not look for ways to deliver services in better ways.

“The cumulative overspend in healthcare was more than a billion dollars, Friesen said, with worse results than those being seen now.

The Tories were elected in 2016 on a promise to tackle a string of deficits started by the former NDP government and to balance the budget by 2024.

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-With files from Sharon Pfeifer