Province Releases First Quarter Financial Report

September 4, 2008

Budget on Track For Ninth Straight Balanced Budget: Selinger

Finance Minister Greg Selinger has released the province’s financial report for the first quarter of 2008-09 which shows the province is on track for its ninth consecutive balanced budget.“Manitoba’s economy continues to be strong and we are on track for another balanced budget,” said Selinger. “This year’s balanced budget continues to retire Manitoba’s general purpose debt and pension liability with a $110-million payment, bringing total debt payments since 1999-2000 to $924 million, the largest in Manitoba history. It also reduces taxes for business and families and provides a historic funding commitment to education.”

Selinger noted that Manitoba’s net debt-to-GDP ratio has been reduced by more than 30 per cent to an estimated 21.8 per cent at the end of 2007-08 from 31.4 per cent in 1999-2000. He said the province has also reduced the cost of the debt to taxpayers with servicing costs now just 6.5 cents on the dollar, down more than 50 per cent from 13.2 cents in 1999.

The report notes that for the first three months of the fiscal year, core government expenditures and revenues improved slightly.

Overall, the 2008-09 budget projection of $96 million for summary net income is unchanged.

Beginning in 2008-09 all of Manitoba’s quarterly reports will include a summary of Manitoba’s performance on key economic indicators. The first quarter report notes Manitoba’s economic growth of 2.5 per cent in 2008 will more than double the forecast national growth of 1.2 per cent and for the first seven months of 2008, employment has increased by 12,100 jobs.

“Manitoba has a sound fiscal plan which includes growing the economy, improving our infrastructure and vital social programs while balancing the budget, paying down the debt, cutting taxes and saving for the future,” said Selinger. “Credit rating agencies have taken notice, giving us six credit improvements since 2000.”

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