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May 01, 2015MANITOBA BUDGET 2015-16 Manitoba's 2015-16 Budget projects a deficit of $421 million, following an expected deficit of $451 million in 2014-15. Revenue growth is expected to average 3.3 per cent growth over the coming years while expenditure growth is forecast to be 2.4 per cent on average. Manitoba's fiscal planning assumes $70 million in 'lapsed spending' as well as small transfers from the Fiscal Stability Fund.
Manitoba's Budget plan (core activities, excluding consolidated entities) anticipates higher expenditures in coming years than projected in the 2014-15 Estimates. Manitoba's revenues are also falling below expectations. Higher spending and lower revenues will lead to a longer timeframe before the Manitoba Budget is balanced, now expected in 2018-19.
Manitoba's government is projected to at a slower pace than nominal GDP, resulting in a smaller footprint of government in coming years. Deficits as a share of GDP are expected to remain under 1 per cent through 2016-17.
Manitoba's economic outlook is expected to benefit from stronger exports of manufactured goods metals as well as from higher livestock prices. Real GDP is projected to grow by 2.5 per cent in 2015 - consistent with prior forecasts. Employment projections of 1.2 per cent in 2015 and 1.1 per cent in 2016 are expected to be matched by labour force growth, leaving the unemployment rate unchanged at 5.4 per cent.
Key Measures and Initiatives
Manitoba's Budget features few new tax and expenditure initiatives:
- Double Seniors' School Tax Rebate
- Increase caregivers tax credit to up to $4,200
- Enhnce rent assistance by $22 million
Manitoba Budget 2015-16