Manitoba deficit lower than previous estimates

The Manitoba government is seeing a $166-million improvement in its deficit situation over its own estimates earlier this year.

Finance Minister Cameron Friesen released Manitoba's public accounts for the 2015-16 fiscal year on Thursday, and announced the province's deficit is at $846 million.

That's a $166million improvement on thenumber Friesen announced earlier this year, although still more than double the 2015-16 deficit projected by the previous NDP government.

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In May, Friesen placed the estimate of the province's deficit at $1.012 billion, well above the $773 million the previous NDP government had announced in its Aprilfiscal update, and more than 50 per cent higher than the March update.

At the time Friesen called the New Democrats "reckless" and accused the party of misleading the public.

Manitoba deficit lower than previous estimates

8 years ago

Duration 1:48

Finance Minister Cameron Friesen released Manitoba's public accounts for the 2015-16 fiscal year on Thursday, and announced the province's deficit is at $846 million.

On Thursday morning,Friesendefended the updated, lowernumbers by hitting out at the previous government.

"You are well aware of their record of budgetary performance. They outspent every year," Friesen said.

"I don't feel we are inaccurate."

Friesen said some increases in revenue improved the bottom line: corporate tax income increased $11 million, and fuel and retail tax revenue also increased.

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NDP MLA James Allum fired back after the announcement, saying the changewas proof the Progressive Conservatives had "inflated deficit numbers for partisan purposes."

"The official audit shows their number was nowhere near the truth," Allum said in a news release. "The only reason for inflating the number by $166 million was to justify their plan to cut services that families rely on."

Still work to do be done

Friesen said the improvement doesn't mean the province's financialproblems are solved.

"You shouldn't take it as an indication that things are in a good place," he said, andcontinued to hammer the previous government for fiscal mismanagement.

"They routinely overestimated revenue and underestimated spending."

Some parts of the provincial economy showed positive growth, he said.

"Certainly there is a small good news for Manitoba as some sectors [such as agriculture] performed better," Friesen said.

The public accounts can be viewed online here.