Flood fight contributes to $989-M deficit: province
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Hey there, time traveller!
This article was published 16/12/2011 (5427 days ago), so information in it may no longer be current.
Manitoba’s deficit is expected to hit $989 million dollars this budget year because of unexpected costs in fighting this year’s flooding, the province said today.
In the 2011-12 second quarter report released today, the province said before the flood hit southern Manitoba in the spring the forecast deficit was $438 million.
Finance Minister Stan Struthers and Premier Greg Selinger have in recent days discussed the flood’s costs and its impact on the province’s bottom line, adding discussions continue with Ottawa on picking up its share of the flood bill.
The province projects its share of the current $815-million flood bill will be $343 million.
The province also says at the end of September core government revenue is forecast to be $42 million lower than budget, largely because of a result of federal transfers for infrastructure renewal and the Red River Floodway expansion.
Spending on the core side is forecast to be higher than budget because of more spending in family services ($60 million) and public safety and corrections ($33 million). The province has brought in unspecified “expenditure management initiatives” to address the increased spending.
Net income in other government business enterprises is forecast to be $63 million lower than budget.
In the province’s mid-year economic outlook, also released Friday, the government says Manitoba’s medium-term economic outlook has moderated since April due to the spring flood and markedly slower economic growth for Canada and the world.
Selinger and Struthers have said the cost of fighting the spring flood, a cost which continues to rise, has not swayed the NDP from its pledge to bring the province back into the black by 2014.
The Progressive Conservative opposition have said they doubt the NDP can keep that promise without raising taxes or drastically cutting spending.