The Manitoba government has released its 2026-27 first quarter report, which forecasts a deficit of $496 million, a $2-million improvement from the $498-million deficit projected in Budget 2026.

“Manitoba’s economy continues to show resilience despite ongoing global economic uncertainty, trade disruptions and the impacts of natural disasters,” said Finance Minister Adrien Sala. “We’re managing the province’s finances responsibly while continuing to support Manitobans through investments in health care, disaster recovery and economic growth.”

The report forecasts an improvement in Manitoba’s net debt position, with summary net debt projected at $38.1 billion, a decrease of $1.7 billion from Budget 2026. The province’s net debt-to-gross domestic product ratio is forecast at 36.4 per cent, down from 38.2 per cent projected in the budget.

Revenue is forecast to increase by $294 million compared to Budget 2026, driven primarily by stronger-than-expected individual income tax revenues and a $107-million improvement in net income from Manitoba Hydro.

Expenses are forecast to increase by $292 million from Budget 2026, largely due to emergency expenditures associated with 2026 flooding and the Manitoba government’s wildfire response.

The report notes that Manitoba’s economy continues to be supported by a strong labour market. Employment is forecast to grow by 1.6 per cent in 2026, compared with 0.9 per cent projected in Budget 2026, while the unemployment rate is forecast at 5.6 per cent.

“While external pressures continue to impact economies across Canada and around the world, Manitoba’s diverse economy and strong labour market are helping to position our province for long-term growth,” said Sala. “Our government remains focused on protecting good jobs, supporting businesses grow and making the investments needed to build a stronger Manitoba.”

The 2026-27 first quarter report also highlights strong year-to-date growth in employment, average weekly earnings, retail sales, manufacturing sales, wholesale trade, housing starts and building permits. Housing starts have increased 39.2 per cent compared with the same period in 2025, while building permits are up 18.3 per cent.

To read the 2026-27 First Quarter Report , visit gov.mb.ca.