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WINNIPEG — The Manitoba government is projecting a smaller-than-expected deficit, although it is still a record-high amount.
A budget update says the fallout from the COVID-19 pandemic will result in a deficit of just over $2 billion for the fiscal year that ends in March.
That is $900 million lower than the last deficit estimate in September, and is due primarily to $648 million in federal COVID-19 relief for hospitals, schools, businesses and other entities.
The Progressive Conservative government says its own spending on pandemic-related programs in areas such as health care and business supports are the main factor in the deficit.
Revenues are also lower than first projected in last spring's budget.
A slower economy has resulted in lower income and sales tax revenues, and money from casinos dropped when they had to shut down under COVID-19 restrictions.
This report by The Canadian Press was first published Dec. 17, 2020