Guarantor

Province of Manitoba

General information

The Province of Manitoba is located in the center of Canada, north of the States of Minnesota and North Dakota. It is the most easterly of the three Provinces of Manitoba, Saskatchewan and Alberta, which together constitute the Prairie Region of Canada. Manitoba is bounded on the east by the Province of Ontario, on the north by Hudson Bay and the Territory of Nunavut, and on the west by the Province of Saskatchewan. The Province has 400 miles of northern coastline bordering on Hudson Bay. The only seaport in the Prairie Region is located at Churchill on Hudson Bay.

Of Manitoba’s total area of 251,000 square miles, 39,000 square miles are lakes and rivers and 163,000 square miles are lands owned by the Province. Cultivated land comprises 30,000 square miles in the southern part of the Province. The northern half of the Province, which is part of the Canadian Shield, is composed largely of timberlands and extensive areas of mineralized rock structure.

The estimated population of Manitoba on July 1, 1999 was 1,143,400, of whom approximately 680,000 lived in Winnipeg, the capital of the Province. Winnipeg has a diversified economic base with significant activity in a variety of manufacturing and service sectors. The city is also a major rail, truck and air transportation hub by virtue of its geographical position in the center of the continent. The second largest city in the Province is Brandon, with a population of approximately 40,000. Brandon, in western Manitoba, is a major supply center for the agriculture industry, as well as an agriculture-related manufacturing center.

The economy

General

The Manitoba economy shares many characteristics with the overall Canadian economy. Like Canada, the Province has a diversified economy with major industries of manufacturing, agriculture, metal mining, transportation, communication and wholesale trade. Similarly, the Province exports a large portion of production.

In 1998, Real Gross Domestic Product increased 3.2% compared to the increase of 3.1% Canada as a whole experienced. Gross Domestic Product at factor cost has continued to rise at a steady pace over the last 5 years to a level of $26.5 billion in 1998. There was growth of 1.2% in non-commercial services (ie. health care, education and public administration) while commercial services lead by retail and wholesale trade and finance experienced considerable growth of 4.8%. Goods production increased 5.0% owing to increases in manufacturing (7.9%), construction (3.9%), utilities (2.6%) and mining (4.5%). In the first nine months of 1999, the value of manufacturing shipments decreased 2.4% compared to the first nine months of 1998. The decrease is principally due to a 36.7% reduction in machinery shipments largely associated with reduced shipments of agricultural machinery. Overall, ten of sixteen categories of manufacturing reported increases.

Over the five years 1994 to 1998, exports to the United States and other countries increased by 86.0% and 53.8% (representing compound annual growth rates of 16.8% and 11.4%). Merchandise exports amounted to $17.0 billion in 1998, an increase of 7.5% compared to 1997. International trade agreements and changes in currency exchange rates have had a positive impact on exports. Total foreign exports for the first eight months of 1999 were down .9% compared to the first eight months of 1998. On a year-to-date basis, exports to the United States have increased by approximately 28.2%.

Farm cash receipts decreased by 6.1% in 1998 primarily due to a decline in receipts from wheat, but were still the second highest in history. Cash receipts are diversified between crops and livestock and within these major sectors of production.

In 1998, estimated tourism expenditures by both residents of Manitoba and visitors increased by 19.5% to $971 million. In the summer of 1999, Winnipeg hosted the Pan American Games.

Average employment in 1998 increased .01% to 546,100 and Manitoba’s average unemployment rate decreased from 6.6% to 5.7%. The employment rate is at the lowest level since 1980, significantly lower than the Canadian unemployment rate of 8.3%.

The following table sets forth selected indicators of economic activity and the compound annual growth rates for the Province and Canada for the years 1994 through 1998. In this table and throughout this document, compound annual growth rates are calculated by distributing the aggregate amount of growth during the period on the basis of a constant annual rate of growth compounded annually.

Selected economic indicators
  Year ended December 31, Compound annual growth rate
1994 1995 1996 1997 1998 1994–1998
(in millions of dollars unless otherwise indicated)
  1. At market prices.
  2. Expressed in 1992 dollars.

Sources: Statistics Canada, Manitoba Bureau of Statistics and Manitoba Department of Finance.

Nominal gross domestic product 1 Manitoba $26,169 $27,382 $28,830 $29,923 $30,686 4.1%
Canada 767,506 807,088 833,921 873,947 895,704 3.9
Real gross domestic product 2 Manitoba 25,363 25,927 26,630 27,827 28,715 3.2
Change 3.8% 2.2% 2.7% 4.5% 3.2%
Canada 748,350 769,082 782,130 813,031 838,265 2.9
Change 4.7% 2.8% 1.7% 4.0% 3.1%
Personal income 22,682 23,622 24,625 24,895 25,967 3.4
Personal income per capita (in dollars) 20,181 20,825 21,667 21,875 22,710 3.0
Retail sales 7,020 7,432 7,920 8,589 8,772 5.7
Capital investment 3,554 3,814 3,978 4,882 5,181 9.9
Housing starts (units) 3,197 1,963 2,318 2,612 2,895 –2.5
Change in Consumer Price Index Manitoba 1.4% 2.7% 2.2% 2.2% 1.3%
Canada 0.2% 2.2% 1.6% 1.6% 1.0%
Population (July 1) (in thousands) Manitoba 1,124 1,130 1,134 1,137 1,138 0.3
Canada 29,036 29,354 29,672 30,008 30,297 1.1
Employment (in thousands) 511.1 521.4 525.5 538.3 546.1 1.6
Average unemployment rate 9.2% 7.5% 7.5% 6.6% 5.7%
Average exchange rate (C$ per U.S.$) 1.3659 1.3726 1.3636 1.3844 1.4831

In the Spring of 1997, the Red River Valley in southern Manitoba experienced its most severe flooding in this century. Although the flood adversely affected many homes, farms and businesses, the overall impact on the provincial economy was negligible.

Economic structure

The Province has a diversified economy. In 1998, agriculture accounted for 3.3% of Gross Domestic Product at factor cost, mining, forestry and utility industries for 6.3%, manufacturing for 13.4% and construction for 5.0%. The commercial service sector accounted for 50.5% of gross domestic product at factor cost, and the non-commercial service sector for 21.6%.

The following table sets forth the Gross Domestic Product by industry at factor cost and the compound annual growth rates for the years 1994 through 1998.

Gross domestic product at factor cost by industry
  Year ended December 31, Compound annual growth rate
1994 1995 1996 1997 1998 1994–1998
(in millions of dollars unless otherwise indicated)
  1. Gross Domestic Product measures value added and therefore differs from the value of production or the value of shipments by industry. Gross Domestic Product at factor cost is the sum of all factor incomes from production in the Province. Gross Domestic Product at factor cost plus indirect taxes, minus subsidies, equals Gross Domestic Product at market prices.
  2. Agriculture also includes fishing, hunting and trapping.

Source: Manitoba Bureau of Statistics.

Goods producing industries - manufacturing $2,623 $2,888 $3,039 $3,352 $3,554 7.9%
Construction 1,144 1,152 1,190 1,300 1,332 3.9
Utilities 901 930 976 1,000 1,000 2.6
Agriculture 2 877 804 1,318 992 872 –0.1
Mining 490 560 545 634 584 4.5
Forestry 72 84 81 73 76 1.4
Total goods producing industries 6,107 6,417 7,149 7,351 7,418 5.0
Service producing industries, commercial services, real estate 2,654 2,712 2,772 2,895 2,994 3.1
Transportation and storage 1,474 1,541 1,586 1,742 1,720 3.9
Retail trade 1,334 1,388 1,462 1,572 1,689 6.1
Wholesale trade 1,173 1,295 1,385 1,499 1,564 7.5
Finance and insurance 1,148 1,120 1,200 1,331 1,434 5.7
Communication 1,009 1,013 1,017 1,047 1,032 0.6
Other commercial services 2,291 2,442 2,592 2,757 2,954 6.6
Total commercial services 11,083 11,511 12,014 12,843 13,387 4.8
Non-commercial services, hospitals and welfare 1,923 1,962 1,990 1,982 2,064 1.8
Education 1,592 1,596 1,601 1,613 1,648 0.9
Federal administration 955 954 926 900 902 –1.4
Provincial administration 582 589 587 604 621 1.6
Local administration 404 430 441 460 483 4.6
Total non-commercial services 5,456 5,531 5,545 5,559 5,718 1.2
Total service producing industries 16,536 17,042 17,558 18,402 19,105 3.7
Gross domestic product (at factor cost) $22,643 $23,460 $24,707 $25,753 $26,524 4.0

Public debt

Debt record

The Province has always paid the full face amount of the principal of and premium and interest on (a) every direct obligation issued by it and (b) every indirect obligation on which it has been required to implement its guarantee, all promptly when due in the currency in which and country where payable at the time of payment thereof, subject during wartime to any applicable laws and regulations forbidding trading with the enemy.

Direct funded debt of the Province

The Province borrows to fund its net cash requirement. The following table summarizes the direct funded debt of the Province by currency as at March 31 for the years 1995 through 1999.

Direct funded debt of the Province
  As at March 31,
1995 1996 1997 1998 1999(1)
(in thousands of dollars)
  1. Subsequent to March 31, 1999, the Province issued funded debt of $1,311.8 million in Canadian dollars which was issued to finance maturing issues, fund an allocation to the Provincial sinking fund, and for self-sustaining programs including Manitoba Hydro.
  2. Debentures payable in U.S. dollars and other foreign currencies are stated at the Canadian dollar equivalent using the exchange rates in effect on March 31 each year adjusted for any foreign currency contracts entered into for settlement after those dates.
  3. Direct funded debt payable in Canadian dollars includes debentures held by the Canada Pension Plan Investment Fund. Such securities are payable 20 years after their respective dates of issue, are not negotiable, transferable or assignable, but are redeemable in whole or in part before maturity at the option of the Minister of Finance of Canada, on six months’ prior notice, when he deems it necessary in order to meet the requirements of the Canada Pension Plan. At March 31, 1998 and 1999, the amounts of such debentures were $1,698 million and $1,599 million, respectively.
  4. For the fiscal year ending March 31, 2000, the gross interest expense for the Province’s direct funded debt is estimated to be $1,429 million, comprised of $841 million for general Provincial programs (before deduction of interest income of $352 million) and $588 million in respect of debt designated by the Lieutenant Governor in Council as “self-sustaining,” which is required to be serviced out of funds generated by the activity financed.
  5. Debt for general Government programs consists of the total direct funded debt of the Province less debt issued for self-sustaining purposes.
Direct funded debt payable in 2: Canadian dollars 3 $7,456,145 $7,710,108 $7,913,617 $8,;575,028 $10,175,179
Issues swapped to Canadian dollars 2,042,156 1,951,919 2,930,815 2,746,411 2,045,427
U.S. Dollars 6,541,383 6,312,647 5,337,523 4,895,424 5,517,267
Issues swapped to U.S dollars 1,177,203 1,020,128 885,139 1,363,002 880,384
Total direct funded debt 4 17,216,887 16,994,802 17,067,094 17,579,865 18,618,257
Less: sinking funds 3,442,245 3,833,016 4,529,727 5,053,335 5,821,697
Net direct funded debt $13,774,642 $13,161,786 $12,537,367 $12,526,530 $12,796,560
Raised for the purpose of general government programs 5 $7,364,197 $6,813,637 $6,807,955 $6,763,278 $6,773,800
The Manitoba Hydro-Electric Board 4,492,814 4,605,587 4,526,062 4,784,110 5,083,853
Other 1,917,631 1,742,562 1,203,350 979,142 938,907
Net direct funded debt $13,774,642 $13,161,786 $12,537,367 $12,526,530 $12,796,560

Guaranteed debt of the Province

The following table summarizes the guaranteed debt of the Province by currency and purpose of issue as at March 31 for the years 1995 through 1999.

Guaranteed debt of the Province
  As at March 31,
1995 1996 1997 1998 1999
(in thousands of dollars)
  1. Debentures payable in U.S. dollars are stated at the Canadian dollar equivalent using the exchange rate in effect on March 31 each year adjusted for any foreign currency contracts entered into for settlement after those dates.
  2. (2) The table does not include contingent obligations in the amount of $68,980,909 as at March 31, 1999, comprised of $717,706 of mortgages, and $68,263,203 of bank lines of credit.
Guaranteed debt payable in 1 Canadian dollars $803,193 $649,868 $560,033 $507,565 $479,632
U.S. dollars $195,580 $210,478 $601,893 $532,500 $296,709
Total guaranteed debt $998,773 $860,346 $1,161,926 $1,040,065 $776,341
Less: sinking funds and other related trust funds $129,186 $137,985 $147,897 $248,916 $175,118
Net guaranteed debt 2 $869,587 $722,361 $1,014,029 $791,149 $601,223
Issued by The Manitoba Hydro-Electric Board $842,441 $694,541 $1,005,601 $784,689 $592,600
Other $27,146 $27,820 $8,428 $6,460 $8,623
Net guaranteed debt 2 $869,587 $722,361 $1,014,029 $791,149 $601,223

Maturity schedule

The following table sets forth the maturity schedule by currency of the direct funded and guaranteed debt of the Province as at March 31, 1999:

Maturity schedule direct and guaranteed debt 1
Years ending March 31, Canadian dollars 2 U.S. dollars 2 3 Gross maturities Estimated sinking funds withdrawal Net maturities
(in thousands of dollars)
  1. The table does not include contingent obligations in the amount of $69.0 million as at March 31, 1999, comprised of $0.7 million of mortgages, and $68.3 million of bank lines of credit.
  2. Debt payable in Canadian dollars and U.S. dollars includes debt swapped from other currencies.
  3. Debt payable in U.S. dollars (U.S.$4.4 billion) is stated at the Canadian dollar equivalent at March 31, 1999.
Short-term debt $335,098 $296,709 $631,807 $200,695 $431,112
2000 1,120,738 197,215 1,317,953 255,679 1,062,274
2001 1,825,617 536,905 2,362,522 743,533 1,618,989
2002 696,389 1,207,360 1,903,749 520,166 1,383,583
2003 1,124,927 1,111,198 2,236,125 674,719 1,561,406
2004 833,892 932,892 1,766,784 433,342 1,333,442
  5,936,661 4,282,279 10,218,940 2,828,134 7,390,800
2005–2009 3,595,802 374,659 3,970,461 793,863 3,176,598
2010–2014 1,266,121 1,266,121 368,054 898,067
2015–2019 1,001,712 754,600 1,756,312 170,186 1,586,126
2020-2031 899,945 1,282,820 2,182,765 1,836,578 346,187
  $12,700,241 $6,694,358 $19,394,599 $5,996,815 $13,397,784

Sinking funds

A revised Financial Administration Act, which was proclaimed in force April 1, 1997, eliminated the requirement for the sinking fund allocation by the Province. The Minister of Finance may now provide for the creation and management of sinking funds for the orderly retirement of debt. The Minister of Finance may authorize, by directive, the amount, if any, to be allocated to the Province’s sinking fund. The amount allocated to the sinking fund by the Province for the fiscal year ended March 31, 1999, was $301.2 million. Currently, the Province’s sinking fund is invested principally in securities issued or guaranteed by Canadian provinces.

The terms of the Provincial statute incorporating Manitoba Hydro requires the corporation to provide, prior to its fiscal year end in each year, amounts for sinking funds which are not less than the sum of (a) 1% of the debt of and Provincial advances to the corporation outstanding at the preceding fiscal year end plus (b) 4% of the balance of cash and book value of securities in the sinking fund at such date. Interest earned on money and securities in the sinking fund is paid to the corporation.

Unfunded debt

The unfunded debt of the Province as at March 31, 1999 amounted to $1,072 million, including $322 million of accounts payable, $320 million of accrued interest and $430 million of other accrued charges. This unfunded debt was offset by current assets of the Province in the amount of $799 million, represented by $296 million of March 1999 tax revenue receivables, $38 million of other receivables, $100 million of interest receivable and $142 million of accounts receivable from the Federal and other governments and $223 million in cash and equivalents.

Consolidated funded debt of the Manitoba public sector

The Province supervises all financial activities of the Manitoba public sector. Certain public sector entities issue debt in their own names, which is not guaranteed by the Province. Accordingly, not all funding within the public sector is reflected in the Province’s financial statements. The following table sets forth the consolidated funded debt of the Manitoba public sector at March 31 for each of the years 1995 through 1999.

Consolidated funded debt of the Manitoba public sector
  As at March 31,
1995 1996 1997 1998 1999
(in millions of dollars)
  1. U.S. and other foreign currency debt included in the Direct Debt of the Province and the Guaranteed Debt of the Province are stated at the Canadian dollar equivalent using the exchange rates in effect on March 31 each year.
Issued for the purpose of general government programs $9,497 $9,279 $9,350 $9,305 $9,733
The Manitoba Hydro-Electric Board 5,895 5,944 6,314 6,719 7,009
Other crown organizations 2,991 2,813 2,753 2,809 2,872
Municipalities and their enterprises 1,125 1,197 1,162 1,240 1,199
Schools and universities 336 352 355 352 376
Hospitals and associated institutions707 707 601 526 527
Total public sector debt 20,551 20,292 20,535 20,951 21,716
Less: accumulated sinking funds 3,853 4,307 5,013 5,639 6,367
Net public sector debt $16,698 $15,985 $15,522 $15,312 $15,349
Consisting of direct debt of the Province 1 $17,217 $16,995 $17,067 $17,579 $18,619
Less: Amount provided to Municipalities and Universities 56 54 43 33 24
Guaranteed debt of the Province 1 999 860 1162 1,040 776
Less: amount provided to municipalities, schools and hospitals 4 1 1
Non-guaranteed debt of crown organizations 233 237 233 247 243
Less: amount provided to municipalities and hospitals 6 1 1
Municipalities and their enterprises 1,125 1,197 1,162 1,240 1,199
Schools and universities 336 352 355 352 376
Hospitals and associated institutions 707 707 601 526 527
Total public sector debt 20,551 20,292 20,535 20,951 21,716
Less: accumulated sinking funds 3,853 4,307 5,013 5,639 6,367
Net public sector debt $16,698 $15,985 $15,522 $15,312 $15,349

Selected debt information

The following table sets forth certain information as to the funded debt of the Province as well as debt issued for general government programs (all net of accumulated sinking funds) as at March 31 for the years 1995 through 1999, including per capita data based upon population at July 1 of the preceding calendar year:

Public sector debt information
  As at March 31,
1995 1996 1997 1998 1999
Total net consolidated funded debt of the Manitoba public sector (in millions) $16,698 $15,985 $15,522 $15,312 $15,349
Per capita 14,856 14,146 13,688 13,467 13,488
As a percent of personal income73.6% 67.7% 63.0% 61.5% 59.1%
As a percent of gross domestic product 63.8% 58.4% 53.8% 51.2% 50.0%
Total net direct funded debt of the Province (in millions) $13,775 $13,162 $12,537 $12,527 $12,797
Per capita 12,255 11,648 11,056 11,018 11,245
As a percent of personal Income 60.7% 55.7% 50.9% 50.3% 49.3%
As a percent of gross domestic product 52.6% 48.1% 43.5% 41.9% 41.7%
Net debt issued for general government programs (in millions) $7,364 $6,814 $6,808 $6,763 $6,774
Per capita 6,552 6,030 6,004 5,948 5,953
As a percent of personal income 32.5% 28.8% 27.6% 27.2% 26.1%
As a percent of gross domestic product 28.1% 24.9% 23.6% 22.6% 22.1%
Net cost of servicing general government program debt as a percent of provincial revenue 10.8% 9.8% 9.8% 8.9% 8.5%

Revenue and expenditure

Under the Constitution, the Province has the power to impose direct taxation within the Province in order to raise revenue for Provincial purposes. It also has exclusive jurisdiction over the borrowing of money on the sole credit of the Province.

Under the statutes of the Province, public money is deposited to the credit of the Minister of Finance and forms part of the Consolidated Fund of the Province. Money necessary to carry out the operations of the Province in each fiscal year is voted by the Legislative Assembly, with the exception of those expenditures for which provision has already been made by special legislation, such as amounts required to service the debt of the Province and to fulfill guarantees made by the Province. In addition, the Lieutenant Governor in Council may, when the Legislative Assembly is not in session, authorize expenditures that are urgently and immediately required for the public good through the issuance of special warrants.

The financial transactions of the Province are recorded in the Consolidated Fund. The Consolidated Fund reflects the transactions and balances of the Operating Fund, which records the operations of the Province, the Trust Fund, which records the trust administration fund, and other special funds of the Province.

The annual financial statements prepared for the Operating Fund report amounts received as Provincial revenue, amounts expended on Provincial programs as Provincial expenditure, amounts lent and invested, and amounts borrowed and repaid. The annual financial statements prepared for the Trust Fund report the activities relating to the trust money administered by the Province. The Trust Fund is primarily comprised of cash and investments of Crown corporations, agencies, boards and commissions on deposit with the Minister of Finance. All short-term investments are made in the Operating Fund. The accounts and financial statements of the Province are examined by the Provincial Auditor who is responsible to the Legislative Assembly and is required to make a report to the Legislative Assembly each fiscal year.

The accounts of the Province are kept on an accrual basis. Interest on borrowed funds as well as interest earnings on investments are accrued. Revenue from shared-cost agreements with Federal governments is also accrued. Fluctuations in the value of direct funded debt payable in foreign currencies, debt discounts and premiums and investment discounts and premiums are amortized over the life of the debt or investment.

The accounts of the Consolidated Fund of the Province include investments in, and loans, advances and grants to, Crown organizations and Government enterprises, but in general do not include the profits or losses of such entities. Each of these entities maintains its own accounting records, which are audited annually. The accounts do not include revenue and expenditure of local government bodies such as municipalities and school boards which carry out certain responsibilities delegated by the Province, except that Provincial assistance provided to such entities is included in the Provincial accounts as expenditure.

The Provincial Government prepares a budget for each fiscal year, which estimates revenue and expenditure. In 1989, a Fiscal Stabilization Fund was established to cushion fluctuations in Provincial revenue and provide a more stable basis for fiscal decisions. The Fund is also available for special initiatives. The Fiscal Stabilization Fund earns interest. Transfers to and from the Fiscal Stabilization Fund are determined by the Minister of Finance, subject to approval by the Lieutenant Governor in Council. At March 31, 1999, the Fiscal Stabilization Fund had $427.3 million in liquid assets. Beginning in the 1996/97 fiscal year, all proceeds from lotteries are drawn into revenue on a current basis.

The following table sets forth the transactions of the Operating Fund for the four fiscal years ended March 31, 1999 and the budget estimate for the fiscal year ending March 31, 2000.

Statement of operating fund transactions
  Year ending March 31,
1996 1997 1998 1999 Budget Estimate 2000
(in millions of dollars)
  1. For additional details, see “Tables of Supplementary Information – Tables I and II.”
  2. Includes a special one-time transfer of $145 million. Beginning in the 1996/97 fiscal year, proceeds from lotteries are drawn into revenue on a current basis and will be included in luxury taxes.
  3. The Provincial Auditor indicated, in the Auditor’s Report, that the financial statements of the Operating Fund and Special Funds for the year ended March 31, 1999 reflect only the transactions and balances of the Operating Fund and Special Funds of the Province of Manitoba. Other significant financial activities of the Government, which occur outside the Operating Fund and Special Funds, are not included in these financial statements. Furthermore, these financial statements are prepared in accordance with accounting principles used for the annual budget of the Operating Fund which vary from generally accepted accounting principles. In the opinion of the Provincial Auditor, the financial statements of the Operating Fund and Special Funds for the year ended March 31, 1999 have been presented in accordance with the accounting policies disclosed in the notes to the financial statements. However, the Provincial Auditor indicated that the Summary Financial Statements of the Government of the Province of Manitoba rather than the Operating Fund and Special Funds Financial Statements better reflect the Government’s management of public financial affairs and resources as a whole.
  4. The Provincial Auditor indicated that, in the Auditor’s opinion, had the Government recorded the pension liabilities in its Operating Fund financial statements, the Fund’s liabilities and accumulated deficit would be increased by an estimated $1.997 billion as at March 31, 1996 and $2.135 billion as at March 31, 1997. However, if the estimated pension liabilities were recorded in the Operating Fund financial statements, expenditures for the year ended March 31, 1997 would be increased, and surplus for the year would be decreased, by approximately $140 million. Beginning with the fiscal year ended March 31, 1997, the pension liability is included in the Summary Financial Statements.
  5. The Operating and Special Funds financial statements do not include the Government’s pension liabilities. If the pension liabilities were included, the liabilities and accumulated deficit of the Operating and Special Funds as at March 31, 1999 would increase by $2.7 billion.
  6. Extraordinary items are defined as follows: ($ millions)
    Gross proceeds from MTS divestiture 910
    Applied to: conversion and reduction of debt incurred for MTS 400
    Interest equalization provision 50
    Underwriters’ fees 37
    Other costs 8 495
    Net proceeds from MTS divestiture 415
    Less: debt repayment – hospitals and personal care homes 150
        265
  7. The Special Funds include the Fiscal Stabilization Fund and the Debt Retirement Fund.
Revenue 1 individual and corporation income taxes $1,492.5 $1,653.2 $1,623.8 $2,022.4 $1,851.3
Federal transfers unconditional 1,503.4 1,672.7 1,668.3 1,427.8 1,600.2
Conditional (shared costs) 369.4 43.2 215.8 131.8 122.9
Other corporation taxes 331.5 353.0 370.9 383.1 394.7
Sales taxes 779.5 819.7 881.9 938.0 964.9
Gasoline and motive Fuel taxes 216.7 218.6 218.1 224.4 223.7
Luxury taxes 405.1 472.7 482.5 491.8 484.0
Natural resources revenue 121.3 100.7 118.1 86.9 86.9
Other revenue 208.0 165.2 162.5 175.8 170.4
Total revenue before transfer from fiscal stabilization fund and lotteries fund 5,427.4 5,499.0 5,741.9 5,882.0 5,899.0
Transfer from fiscal stabilization fund 100.0 185.7 183.2
Transfer from lotteries fund 235.0(2)
Total revenue $5,662.4 $5,499.0 $5,841.9 $6,067.7 $6,082.2
Expenditure 1 health and community services $2,564.8 $2,544.4 $2,578.3 $2,728.9 $2,835.6
Education 991.0 999.5 1,045.8 1,120.5 1,179.0
Economic and resource development 586.0 571.6 617.7 653.7 733.2
Manitoba tax credit plans 189.4 198.1 181.2 178.0 181.8
Direct local government assistance 116.6 121.9 120.1 137.5 108.0
Public debt 555.5 539.1 520.1 514.8 480.8
Debt retirement fund 75.0 150.0 75.0
Consumer services, public protection and other government services 501.3 420.3 627.4 553.3 526.6
Internal reform – workforce adjustment and general salary Increases 12.0
Allowance for losses 0.7 0.9 0.1 (0.1) 0.8
Total expenditure 5,505.3 5,407.9 5,765.7 6,036.6 6,120.8
Less: year-end savings 60.0
  $5,505.3 $5,407.9 $5,765.7 $6,036.6 $6,060.8
Operating fund deficit (surplus) 3 4 5 $(157.1) $(91.1) $(76.2) $(31.1) $(21.4)
Extraordinary items 6 (264.6)
Operating fund deficit (surplus) after extraordinary items (157.1) (355.7) (76.2) (31.1) (21.4)
Net changes in special funds 7 157.1 (4.3) 12.2 31.1 21.4
Non-cash items included in deficit (surplus) 132.3 164.1 (268.5) (58.4)
Provision for sinking fund 390.8 694.2 512.5 628.2 (29.1)
Net change – loans and investments 167.5 (643.9) 83.2 287.8 1,029.8
Decrease (increase) in liability to trust funds (149.1)
Net cash requirement $541.5 $(145.6) $263.2 $857.6 $1,000.7
Provincial financing funded debt proceeds (net of repayments) for general government programs $(22.8) $72.9 $(25.4) $214.0 $313.3
For The Manitoba Hydro-Electric Board 266.0 (0.8) 462.6 370.4 876.4
For other self-sustaining programs (136.7) (43.7) 36.1 53.1 153.4
Decrease (increase) in cash and equivalents 435.0 (174.0) (210.1) 220.1 (342.4)
Total provincial financing $541.5 $(145.6) $263.2 $857.6 $1,000.7