The Manitoba government is taking action to replenish the province’s fiscal stabilization account, also known as the rainy day fund, Finance Minister Scott Fielding announced today.
“The rainy day fund was created in 1989 to serve as a fiscal shock absorber,” said Fielding. “Over the past decade, the previous government drained $794 million from the account to pay for its reckless overspending. We are moving to restore those funds, rebuild Manitoba’s savings and return the province to the stronger financial footing.”
Following a transfer of $50 million in 2018-19, the account has a balance of $215 million as of March 31. It is projected to have a balance of $265 million as of March 31, 2020, after the budgeted transfer of $50 million this fiscal year.
Fielding noted the previous government drained the fund to $115 million in 2015-16 from $864 million in 2008-09. The transfer to the account of $50 million in 2017-18 is the first time the province has contributed to the fund in 10 years, he said.
“We are taking responsible steps to protect Manitobans from unforeseen challenges ahead,” said Fielding. “Our government is replenishing the fund while continuing to reduce the deficit and making life more affordable for Manitobans. We will continue to fix the finances and move our province in the right direction.”