The Canadian Taxpayers Federation is calling on the Manitoba government to find savings after the province’s mid-year fiscal update shows the government is borrowing $1.6 billion more than budgeted.

“When unexpected costs like wildfires and droughts happen, the government needs to find other savings,” said Gage Haubrich, CTF Prairie Director. “Manitoba families make tough choices when they get hit with unexpected costs and it’s time for Premier Wab Kinew to do the same.”

Budget 2025 told taxpayers the debt would hit $36.5 billion this year. Now the fiscal update projects the debt will be $38.1 billion by the end of the year. That’s an increase of $1.6 billion compared to the budget.

The increased debt is attributed to an increase in spending due to wildfire costs and a $684 million loss in income from Manitoba Hydro due to drought conditions.

Debt interest payments are costing Manitoba taxpayers $2.3 billion this year. Debt interest payments are equivalent to about nine per cent of government spending.

The Manitoba government has increased the debt by 64 per cent since 2016. Finance Minister Adrien Sala says the government is still committed to balance the budget in 2027.

“The government shouldn’t be relying on volatile revenue from Hydro to prop up its spending habit.” Haubrich said. “Instead, the government needs a plan to control spending, find savings and start to pay down the debt fast.”