Provincial deficit lower than predicted

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This article was published 19/09/2017 (2951 days ago), so information in it may no longer be current.

The Pallister government made more progress in slashing the provincial deficit last year than it predicted.

According to official audited statements released Tuesday — known as the public accounts — Manitoba incurred a summary budget deficit of $764 million in 2016-17.

That’s $147 million less than originally budgeted and $108 million better than forecast in April. The previous year’s deficit was $839 million.

Last year’s financial results included revenues of $15.723 billion, program expenses of $15.557 billion and public debt charges of $930 million. Included in summary accounting are the results of core government operations plus other public entities, such as Crown corporations.

On April 11, Finance Minister Cameron Friesen forecast a deficit for the current fiscal year of $840 million. At a press conference Tuesday, he said he expected the government would improve on that forecast. His department will update its projections in December.

Friesen said 2016-2017 was the first time in five years the actual deficit was less than budgeted.

“I would underscore that careful day-by-day expenditure control and accountability in all departments and by all ministers was key to getting us where we are today,” he said.

However, the documents released by the government Tuesday also show that the government benefited from higher-than-expected revenues. Total revenues were $233 million higher than forecast. That included an additional $70 million from income tax.

NDP finance critic James Allum said the better-than-anticipated result for last year came, in part, on the backs of students.

“Today’s public accounts reveal that the Conservative government made tens of millions of dollars in cuts to education last year, hitting schools, parents and students across the province hard. It will take many years for the services that Manitobans count on to recover from Pallister’s misguided cuts,” he said in a statement.

Todd MacKay, Prairie director of the Canadian Taxpayers Federation, said he was pleased that last year’s deficit came in under budget, but more needs to be done to speed the progress of balancing the province’s books.

“We need to go faster,” he said, noting that annual interest charges on the province’s debt will soon exceed $1 billion.

The three-volume report released Tuesday also lists all provincial employees whose remuneration, including salary and any severance, totalled $50,000 or more in the fiscal year ended March 31, 2017.

Several longtime MLAs who didn’t contest the April 19, 2016 election or lost their seat in the contest received total payments exceeding $100,000, including past NDP members Nancy Allan ($101,309), Steve Ashton ($107,479), Drew Caldwell ($103,209), Dave Chomiak ($107,725), Greg Dewar ($107,578), Kerri Irvin-Ross ($102,871), Bidhu Jha ($101,309), Ron Lemieux ($102,756), Christine Melnick ($100,926), Tom Nevakshonoff ($102,835), Daryl Reid ($109,322), Eric Robinson ($107,651), Jim Rondeau ($100,926) and Stan Struthers ($100,926) and former Progressive Conservative MLA Bonnie Mitchelson ($100,927).

The public accounts can be viewed at www.gov.mb.ca/finance/publications/financialreports.html.

larry.kusch@freepress.mb.ca