Posted on 12/24/2008, 7:39 am, by mySteinbach

Manitoba’s second quarter financial report for 2008-09 shows the provincial budget continues on a steady course projecting a stronger summary surplus, a positive net result on core operations and a $110-million debt retirement payment, Finance Minister Greg Selinger announced.
 
“While Manitoba is well positioned to weather the impacts of a global downtown, we are not immune to the current unpredictability in the global economy that has shaken consumer and investor confidence throughout the world,” said Selinger. “In Manitoba, our balanced priorities for long-term growth and affordable government within a balanced budget framework add stability to our economy and strongly position our province for economic recovery.”
 
The second quarter projects a year-end surplus on a summary basis of $350 million and forecasts a $52-million net result on core government operations.
 
Selinger noted the Dominion Bond Rating Service (DBRS) confirmed Manitoba’s short- and long-term debt rating on Dec. 15. DBRS reported that Manitoba is one of the best-positioned provinces within its current rating to weather a significant economic downturn with considerable financial flexibility and a track record of above-average economic resilience in recessionary periods.
 
The opening balance of the Fiscal Stabilization Account for 2008-09 was $818 million. As budgeted, the only draw projected from the Fiscal Stabilization Account for 2008-09 would be from funds advanced by the federal government for health wait-time reductions and the ecoTrust. Overall, the fund is projected to have a balance of $780 million at the end of the year.
 
The second quarter report also reflects a recently approved special warrant authorizing $50 million for projected increases in agriculture income stabilization programs and emergency expenditures. Increased costs in agriculture primarily reflect increased AgriStability payments to livestock producers due to decreases in market prices and increased feed costs. Emergency expenditures primarily relate to 2008 forest fire suppression activities.