Despite a looming economic slowdown or recession, Manitoba’s red ink may be shrinking.
First quarter projections for the end of March 2023 predict a $202 million deficit.
That’s an improvement from the spring budget projection of $548 million, a $346 million decrease.
The estimate is attributed to an expected rebound in Hydro revenues as the Crown corporation dealt with drought in 2021, only to have higher water levels because of significant precipitation this year.
There is also a one-time federal health transfer of $72 million.
The province also released the final numbers for the 2021/2022 fiscal year.
The deficit as of the end of March was $704 million, $893 million lower than the $1.6 billion projection.
The province says the significant turnaround is due to revenues that were $1 billion higher than the previous year. This included increases in personal and corporate income tax revenue, as the economy opened back up from the pandemic.
There was also federal funding for health, daycares, and drought programs.
View original article here Source