Federal transfer payments next year spell good news, bad news for Manitoba

OTTAWA -- Manitoba will be getting more money in transfer payments from the federal government during the next fiscal year.

See Full Article

Finance Minister Greg Dewar confirms that Manitoba is in line for a 2.6 per cent bump, which means the province will get receive $3.522 billion in transfers.

This includes payments under the Canada Health Transfer, the Canada Social Transfer and equalization.

The total is $89.6 million more than the province received the previous fiscal year.

Dewar says despite the increase, the province is still concerned about the way transfer payments are calculated, particularly equalization.

Manitoba receives $300 million less in equalization than it did in the 2009-2010 fiscal year.

Dewar said Manitoba has lost support from the equalization program because its economy has performed better against the average of all provincial economies. Although that means more in the way of own-source revenue, it means less money from Ottawa under this one stream of transfer support.

"It's partly a good news story," Dewar said from Ottawa. "We're doing very well relative to the other provinces. Unfortunately, that means we get less from equalization."

The news on federal transfers was delivered to provincial finance ministers meeting in Ottawa this week. Traditionally, the federal government provides firm numbers on transfer payments, including equalization, just before Christmas so the provinces can effectively plan their budgets for the following fiscal year.

The payments revealed this year are based on policies and formulae set by the previous Conservative government. For that reason, there aren't a lot of surprises contained within this year's numbers.

Only Manitoba and Ontario will see their equalization payments go down next year.

Prince Edward Island and Quebec both led the way in equalization payment growth, seeing a 5.3 per cent bump for 2016-17.

Four provinces -- British Columbia, Alberta, Saskatchewan and Newfoundland and Labrador -- will not receive any equalization.

Of the other six provinces, four saw increases in equalization of between 1.9 and 5.3 per cent. Only Manitoba and Ontario saw a decline in overall equalization.

The provinces are still waiting for hard numbers on the new federal infrastructure program promised by Prime Minister Justin Trudeau during the fall election campaign. Further details are expected to be revealed early next year. (Winnipeg Free Press)



Advertisements

Latest Economic News

  • Aeroplan wants to be your rewards program and travel agent. Will it work?

    Economic CBC News
    Aeroplan wants to be more than your rewards program; it also aims to serve as your travel agent. The program announced its ambitious plans this week, which include offering charter flights to sun destinations, opportunities to book travel with cash while earning points, and the ability to transfer miles to other loyalty programs. Source
  • Higher crude prices and weaker loonie could offer provinces royalty windfall

    Economic CBC News
    Resurgent oil prices this year could deliver three provinces unexpected windfalls — and maybe improved political fortunes — if crude stays strong. Sagging prices have weighed heavily on resource-based economies in recent years, putting the squeeze on provincial budgets that rely on petroleum revenues. Source
  • Canadian agriculture ministers briefed on trade-war contingency plan

    Economic CTV News
    VANCOUVER -- Federal Agriculture Minister Lawrence MacAulay emphasized the importance of the provinces working together as an escalating trade war with the United States puts some farmers on edge. The minister said his provincial and territorial counterparts discussed trade negotiations and the contingency plan during their conference that wrapped up Friday in Vancouver. Source
  • Teamsters members at CP Rail ratify new contract

    Economic CBC News
    Unionized conductors and locomotive engineers at Canadian Pacific Railway Ltd. have voted in favour of a new four-year collective agreement. Members of the Teamsters Canada Rail Conference (TCRC), which represents about 3,000 workers at CP, voted 64.7 per cent to ratify the new contract. Source
  • Pipeline protesters say they're willing to defy eviction notice

    Economic CTV News
    BURNABY, B.C. - Protesters at an anti-pipeline camp in Burnaby, B.C., say they are ready to defy an eviction notice handed out from the city. The City of Burnaby issued a 72-hour notice to those occupying "Camp Cloud" on Wednesday, but protesters say in a news release that isn't enough time to comply with concerns raised over safety. Source
  • Japan resumes Canadian wheat imports after suspension

    Economic CBC News
    Ottawa says Japan has ended its temporary suspension of Canadian wheat imports. Japan had halted shipments after some unauthorized genetically modified wheat was found in southern Alberta. Ottawa says the decision marks an end to all international trade actions arising from the discovery on June 14. Source
  • Ottawa says Japan has resumed Canadian wheat imports after temporary suspension

    Economic CTV News
    Ottawa says Japan has ended its temporary suspension of Canadian wheat imports. Japan had halted shipments after some unauthorized genetically modified wheat was found in southern Alberta. Ottawa says the decision marks an end to all international trade actions arising from the discovery on June 14. Source
  • 'This is madness': Auto industry warns U.S. lawmakers of dire tariff consequences

    Economic CBC News
    The world's automotive industry gathered in Washington with uncharacteristic unity, to deliver a singular message to American policymakers: If you start a trade war with tariffs on cars, you'll shoot yourself in the foot. The issue that has been gaining steam for weeks came to a head Thursday as dozens of representatives from the industry around the world deliver their remarks at a hearing before the U.S. Source
  • Loonie moves up as inflation ticks higher, TSX ends lower along with U.S. markets

    Economic CTV News
    Stock indexes in Canada and the U.S. closed down Friday on geopolitical tensions, while the loonie surged higher after Statistics Canada said the inflation rate jumped in June. Data from June showed the country's annual inflation rate rose to 2.5 per cent for the month, up from a 2.2 per cent reading in May to hit its highest mark in more than six years. Source
  • Loonie moves up as inflation ticks higher, TSX moves lower at late-morning

    Economic CTV News
    TORONTO - The loonie surged higher after Statistics Canada reported the annual inflation rate in June hit its highest mark in more than six years, while Canada's main stock index lost ground. The Canadian dollar was trading at 76.16 cents US, up from an average value of 75.44 cents US on Thursday. Source