WINNIPEG 鈥� The Manitoba government is set to receive a major boost in federal equalization payments next year.
New figures from the federal government show Manitoba is expected to receive $4.3 billion in equalization for the fiscal year that will start in April 鈥� a 24 per cent increase from the current year.
It is the largest increase going back more than a decade, according to the federal figures.
Equalization is a federally funded program that offers poorer provinces money so that they can offer services and tax rates similar to richer ones.
It is based on a complex formula that assesses the ability of each province to raise its own revenues, and all provinces east of Saskatchewan are forecast to receive equalization payments next year.
The extra money to Manitoba comes at a time when the province is forecasting a $1.6-billion deficit this year.
Manitoba has registered deficits in every year but two since 2009.
Combined with money for health care and social programs, Manitoba's total federal transfer payments next year are forecast to jump by more than $900 million, to $6.8 billion.
This report by The Canadian Press was first published Dec. 20, 2023.
The Canadian Press
