Manitoba Deficit Balloons to $1.3 Billion
WINNIPEG — The NDP government’s increased deficit spending this year will drive the provincial debt to over $23,000 per Manitoban, hitting the bottom line of families already struggling to make ends meet, Official Opposition Leader Wayne Ewasko and Midland MLA Lauren Stone, PC Critic for Finance, said today.
The province’s 2024-25 second quarter financial update this week shows that the NDP government posted a $1.3-billion deficit at the end of September, which is $513 million higher than what was forecast in the spring budget released in April. Manitoba’s net debt is forecast to increase to $34.5 billion this year, with debt servicing costs up $69 million from budget to an estimated $2.3 billion.
“The NDP inherited the third-fastest growing economy in Canada, a $373-million surplus, and a clear path to sustainable balanced budgets,” Ewasko said. “In just one year, they’ve squandered Manitoba’s progress with a dismal financial performance that has put us on an unsustainable path toward credit downgrades and tax increases.”
The second quarter report also shows Manitoba’s economic growth has slumped to seventh among all provinces. Unemployment has jumped nearly two full percentage points to 5.8% since January, with 7,600 more Manitobans out of work compared to this time last year. Business insolvencies, meanwhile, have skyrocketed 32% while consumer insolvencies have risen by 6%.
At the same time, Statistics Canada inflation data released on Tuesday shows that Manitoba is once again leading the country in runaway grocery prices, including fresh meat (+8.8%) and veggies (+8.3%), while rents are up 7.9%.
Despite receiving more than $900 million in additional revenues from the federal government this year, the NDP are still spending beyond their means, Stone said. As the provincial deficit grows, the province will be forced to borrow more money and pay even more interest, which Manitobans cannot afford.
“Manitobans are struggling to make ends meet and they deserve real answers as to why the finance minister has missed his own financial targets by over half a billion dollars in just six months,” said Stone. “The NDP’s inability to control spending and manage the province’s finances as the threat of new U.S. tariffs approaches shows Manitobans how little they can trust this government to protect their future.”
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