Province Of Manitoba 18-K/A Annual report (foreign governments) (amended)

PROVINCE OF MANITOBA
NOTES TO THE PRELIMINARY UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2003

This report presents the unaudited financial results of the Province of Manitoba for the year ended March 31, 2003. The amounts reported represent the most current data available and it is expected that they will remain largely unchanged when final audited financial statements are issued for the year.

The comparative data provided for the 2001/02 fiscal year has been restated to reflect the organizational structure of departments established in the 2002/03 Estimates as well as the in-year reorganization of departments announced on September 25, 2002.

As noted in previous reports, a $150.0 million payment from Manitoba Hydro related to export profits that was to have been received in 2001/02 was recorded as revenue to the Province in the 2002/03 fiscal year. This payment was received in August 2002 and is identified as an extraordinary revenue item in the quarterly financial reports.

2002/03 YEAR-END RESULTS

A positive balance of $3.5 million is expected for the 2002/03 fiscal year. While this is unchanged from the revised 2002/03 balance projected in the update provided at the time of the 2003 Budget, the expected draw from the Fiscal Stabilization Fund for 2002/03 will be reduced to $36.2 million from the level projected in the update ($76.9 million).

In the 2003 Budget, the projected results for the 2002/03 fiscal year were updated for three significant changes that occurred subsequent to the release of the Third Quarter Financial Report. This included a significant negative adjustment ($84 million) to Equalization receipts related to the Mining Tax base. It should be noted that, when Equalization entitlements are re-calculated in 2003/04 using more current Mining Tax data, it is anticipated that additional Equalization revenue will be received and this has been reflected in the 2003/04 revenue projections. The update also highlighted an improvement to Individual Income Tax revenue of $21 million and a $10 million decline in Corporation Income Tax revenue. Revenue from these sources is expected to remain near the levels projected in the update.

Adjustments in other revenue sources resulted in an overall improvement of $23.7 million from the projection included in the 2003 Budget. As a result of continued expenditure management efforts and lower public debt interest costs, overall expenditures are expected to be $17.0 million lower than the third quarter projection.

Comparison to Budget

Excluding the extraordinary payment from Manitoba Hydro related to 2001/02, total revenues decreased $77.5 million, or 1.1%, from the budget estimates. The decrease is primarily due to a $143.7 million, or 9.7%, decrease in Equalization revenue due to the above-noted federal data revision related to the Mining Tax base and other formula adjustments due to changes in the national economy and related revenues to be equalized among provinces. In addition, the 2002/03 payment from Manitoba Hydro is limited to $53.3 million under the revenue-sharing agreement, a reduction of $21.7 million from the budgeted level, as a result of lower than expected water levels. The Retail Sales Tax generated $1,005.8 million in revenue for 2002/03, an increase of $40.2 million, or 4.2%, from the previous year and a reduction of $26.7 million from the budget projection.

These revenue decreases are partially offset by a $16.1 million increase in Corporation Income Tax, a $12.3 million increase in Corporation Capital Tax and a $11.8 million increase in revenue from the Levy for Health and Education as a result of better than anticipated economic performance in the corporate sector. In addition, Canada Health and Social Transfer revenue increased $27.2 million, Manitoba Lotteries Corporation net income increased $13.5 million and revenue from various other departmental revenue sources increased $33.6 million.

Comparison to Budget (continued)

Total expenditures are projected to increase $22.1 million, or 0.3%, in total from the 2002 Budget levels. The expenditure increase relates primarily to health care, agriculture and emergency expenditures. Health care expenditures increased $38.8 million as a result of wage settlements and continued price and volume pressures including pharmacare and medical services. Emergency expenditures are $14.4 million higher as a result of forest fire suppression and flood-related costs. Changes in federal/provincial agriculture risk management and income support programs have resulted in higher than anticipated costs for 2002/03 of $10.7 million. Expenditures in most other departments are expected to be less than budgeted levels due to in-year expenditure management measures. Public debt servicing costs are projected to be $46.8 million, or 12.7%, less than budgeted as a result of a lower U.S. dollar debt exposure and lower interest rates.

Comparison to Previous Year

Total revenues increased by $117.0 million from the 2001/02 actual level excluding the extraordinary payment from Manitoba Hydro related to 2001/02. The net increase is comprised of a number of increases and decreases, including increases related to the 2002/03 Manitoba Hydro payment ($53.3 million), the Canada Health and Social Transfer ($70.7 million), Tobacco Tax ($42.2 million) due to the budgeted rate increase and Retail Sales Tax ($40.2 million, or 4.2%).

These increases were primarily offset by decreases in Corporation Income Tax ($143.8 million) resulting from a significant decline in national corporate income and a reduction in Equalization payments $(61.5 million) due to negative prior period adjustments. As well, revenues from Water Power Rentals were less than the budget estimate ($12.8 million) due to lower water levels.

Total expenditures increased by $212.6 million or 3.2% from the 2001/02 actual level. Program expenditures increased $285.9 million primarily in the departments of Health ($164.7 million), Education and Youth ($48.4 million), Family Services and Housing ($23.8 million) and Agriculture and Food ($15.0 million). Offsetting the various increases was a $73.3 million year-over-year reduction in public debt servicing costs budgeted as a result of a lower U.S. dollar debt exposure and lower interest rates.

PART B — CAPITAL INVESTMENT

The preliminary results for Part B — Capital Investment expenditures are provided on page 8. The expenditures on capital investment totalled $45.1 million in 2002/03, $12.9 million less than the budgeted level. The under-expenditure results primarily from delays in implementing and/or completing various technology projects.

DEBT RETIREMENT

The 2002 Budget provided for a $96.3 million contribution to the Debt Retirement Fund. As required by the balanced budget legislation, an allocation committee determines the share of those funds directed to pension or general purpose debt. For 2002/03, the committee allocated $48.2 million for retirement of pension obligations, leaving $48.1 million for the retirement of general purpose debt. A status of the Debt Retirement Fund is outlined on page 12.

FISCAL STABILIZATION FUND

The status of the Fiscal Stabilization Fund is provided on page 13. As at March 31, 2003 the Fund has a balance of $221.3 million, including the transfer to the operating fund of $36.2 million as well as the transfer to the Stabilization Fund of the projected 2002/03 operating fund surplus of $3.5 million. The actual transfer is $56.8 million lower than the $93.0 million budgeted transfer.

BORROWING ACTIVITY

The original estimate of borrowing requirements identified in the 2002 Budget was $2,260.2 million, including refinancing and funding for Manitoba Hydro and Health’s capital programs. Actual borrowing for 2002/03 was $3,101.1 million, an increase of $840.9 million. The increase was required to accommodate debt that was called prior to maturity and to fund an allocation to the Provincial Sinking Fund for the repurchase of foreign debt and refinancing debt that will mature in fiscal year 2003/04.

The actual borrowing included $2,039.5 million for refinancing maturing debt issues with the balance for self-sustaining programs, including Manitoba Hydro, and to fund an allocation to the Provincial Sinking Fund for the repurchase of foreign debt and to refund debt maturing in fiscal 2003/04. For the period April 1, 2002 to March 31, 2003, $2,707.7 million was raised in the public market.

PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF REVENUE AND EXPENDITURE
FOR THE YEAR ENDED MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

										2002/03
2001/02			2002/03			INCREASE
ACTUAL			ACTUAL (1)			(DECREASE)				ACTUAL (1)			ESTIMATE (2)			VARIANCE
(thousands of dollars)										(thousands of dollars)
									Revenue
	4,540,372			4,632,075			91,703		Own Source Revenue		4,632,075			4,579,015			53,060
	2,206,410			2,231,749			25,339		Government of Canada		2,231,749			2,362,275			(130,526	)
									Extraordinary Revenue
	—			150,000			150,000		- Manitoba Hydro (2001/02)		150,000			—			150,000
	6,746,782			7,013,824			267,042		Total Revenue		7,013,824			6,941,290			72,534
									Expenditure
	6,342,746			6,628,674			285,928		Program Expenditure		6,628,674			6,559,749			68,925
	394,842			321,505			(73,337	)	Debt Servicing		321,505			368,310			(46,805	)
	6,737,588			6,950,179			212,591		Total Expenditure		6,950,179			6,928,059			22,120
	9,194			63,645			54,451		Net Revenue/(Expenditure)		63,645			13,231			50,414
									Interfund Transfers
	(96,357	)		(96,357	)		—		Debt/Pension Repayment		(96,357	)		(96,357	)		—
	150,000			36,213			(113,787	)	Fiscal Stabilization Fund		36,213			93,000			(56,787	)
	53,643			(60,144	)		(113,787	)	Total Interfund Transfers		(60,144	)		(3,357	)		(56,787	)
									Excess of Revenue over Expenditure for Balanced
	62,837			3,501			(59,336	)	Budget Legislation		3,501			9,874			(6,373	)
									Less: Net Revenue Transferred
	(62,837	)		(3,501	)		59,336		to Fiscal Stabilization Fund		(3,501	)		(9,874	)		6,373
	—			—			—		Net Result for the Year		—			—			—

Notes:

1.	Preliminary Unaudited Actuals
2.	As per 2002 Budget

PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF REVENUE
FOR THE YEAR ENDED MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

								2002/03
2001/02		2002/03		INCREASE
ACTUAL		ACTUAL (1)		(DECREASE)				ACTUAL (1)		ESTIMATE (2)		VARIANCE
(thousands of dollars)								(thousands of dollars)
							Taxation:
							Finance
	1,658,962		1,680,247		21,285		- Individual Income Tax		1,680,247		1,682,300		(2,053	)
	306,381		162,628		(143,753	)	- Corporation Income Tax		162,628		146,500		16,128
	132,431		141,331		8,900		- Corporation Capital Tax		141,331		129,000		12,331
	156,590		161,059		4,469		- Gasoline Tax		161,059		157,600		3,459
	43,227		48,501		5,274		- Insurance Corporations Tax		48,501		42,363		6,138
	13,647		15,370		1,723		- Land Transfer Tax		15,370		13,000		2,370
	244,416		255,132		10,716		- Levy for Health and Education		255,132		243,300		11,832
	9,357		15,660		6,303		- Mining Tax		15,660		17,500		(1,840	)
	66,281		70,132		3,851		- Motive Fuel Tax		70,132		67,700		2,432
	965,560		1,005,785		40,225		- Retail Sales Tax		1,005,785		1,032,500		(26,715	)
	65,924		71,071		5,147		- Revenue Act, 1964, Part I		71,071		65,600		5,471
	138,302		180,508		42,206		- Tobacco Tax		180,508		178,000		2,508
	3,829		3,426		(403	)	- Other Taxation		3,426		3,072		354
	3,804,907		3,810,850		5,943				3,810,850		3,778,435		32,415
							Industry, Trade and Mines
	3,621		2,711		(910	)	- Oil and Natural Gas Tax		2,711		3,314		(603	)
	3,808,528		3,813,561		5,033				3,813,561		3,781,749		31,812
							Other Revenue:
	109,300		96,547		(12,753	)	Conservation — Water Power Rentals		96,547		98,690		(2,143	)
	27,762		30,495		2,733		Conservation — Other		30,495		27,174		3,321
	76,165		84,154		7,989		Transportation and Government Services		84,154		88,811		(4,657	)
	—		53,250		53,250		Manitoba Hydro (2002/03)		53,250		75,000		(21,750	)
	163,316		166,347		3,031		Manitoba Liquor Control Commission		166,347		167,000		(653	)
	248,234		265,484		17,250		Manitoba Lotteries Corporation		265,484		252,000		13,484
	107,067		122,237		15,170		Other Departments		122,237		88,591		33,646
	731,844		818,514		86,670				818,514		797,266		21,248
	4,540,372		4,632,075		91,703		Total Own Source Revenue		4,632,075		4,579,015		53,060

PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF REVENUE
FOR THE YEAR ENDED MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

									2002/03
2001/02		2002/03			INCREASE
ACTUAL		ACTUAL (1)			(DECREASE)				ACTUAL (1)			ESTIMATE (2)		VARIANCE
(thousands of dollars)									(thousands of dollars)
								Government of Canada
	1,399,151		1,337,625			(61,526	)	Equalization		1,337,625			1,481,300		(143,675	)
	685,236		755,985			70,749		Canada Health and Social Transfer		755,985			728,800		27,185
	2,842		16,457			13,615		Medical Equipment Fund		16,457			19,300		(2,843	)
	67,290		68,644			1,354		Advanced Education and Training		68,644			69,056		(412	)
	8,723		4,267			(4,456	)	Conservation		4,267			4,640		(373	)
	5,596		13,748			8,152		Transportation and Government Services		13,748			17,501		(3,753	)
	1,587		(3,267	)		(4,854	)	Emergency Expenditures		(3,267	)		1,190		(4,457	)
	35,985		38,290			2,305		Other Departments		38,290			40,488		(2,198	)
	2,206,410		2,231,749			25,339		Total Government of Canada		2,231,749			2,362,275		(130,526	)
	6,746,782		6,863,824			117,042		Total Before Extraordinary Revenue		6,863,824			6,941,290		(77,466	)
								Extraordinary Revenue
	—		150,000			150,000		Manitoba Hydro (2001/02)		150,000			—		150,000
	6,746,782		7,013,824			267,042		Total Revenue		7,013,824			6,941,290		72,534

Notes:

1.	Preliminary Unaudited Revenue
2.	As per 2002 Budget

PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF PART A — OPERATING EXPENDITURE
FOR THE YEAR ENDED MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

								2002/03
2001/02		2002/03		INCREASE
ACTUAL (1)		ACTUAL (2)		(DECREASE)				ACTUAL (2)		ESTIMATE (3)			VARIANCE
(thousands of dollars)								(thousands of dollars)
	22,098		23,082		984		Legislative Assembly		23,082		22,847			235
	3,280		3,424		144		Executive Council		3,424		3,435			(11	)
	24,089		27,133		3,044		Aboriginal and Northern Affairs		27,133		27,790			(657	)
	497,707		493,271		(4,436	)	Advanced Education and Training		493,271		502,542			(9,271	)
	116,831		131,862		15,031		Agriculture and Food		131,862		121,151			10,711
	4,028		4,199		171		Civil Service Commission		4,199		4,809			(610	)
	5,793		5,497		(296	)	Community Support Programs		5,497		5,731			(234	)
	144,529		141,930		(2,599	)	Conservation		141,930		148,304			(6,374	)
	58,796		59,004		208		Culture, Heritage and Tourism		59,004		59,556			(552	)
	971,223		1,019,615		48,392		Education and Youth		1,019,615		1,016,360			3,255
	66,545		63,754		(2,791	)	Employee Pensions and Other Costs		63,754		62,911			843
	21,358		22,553		1,195		Energy, Science and Technology		22,553		23,714			(1,161	)
	811,838		835,655		23,817		Family Services and Housing		835,655		839,051			(3,396	)
	107,318		110,704		3,386		Finance — Departmental Costs		110,704		110,571			133
	394,842		321,505		(73,337	)	Finance — Debt Servicing Costs		321,505		368,310			(46,805	)
	2,667,741		2,832,468		164,727		Health		2,832,468		2,793,685			38,783
	15,618		20,599		4,981		Healthy Child Manitoba		20,599		21,730			(1,131	)
	26,701		31,440		4,739		Industry, Trade and Mines		31,440		31,612			(172	)
	135,050		143,434		8,384		Intergovernmental Affairs		143,434		144,920			(1,486	)
	238,895		244,131		5,236		Justice		244,131		241,100			3,031
	24,959		26,127		1,168		Labour and Immigration		26,127		26,292			(165	)
	713		689		(24	)	Seniors Directorate		689		739			(50	)
	10,262		10,280		18		Sport		10,280		10,315			(35	)
	1,112		1,077		(35	)	Status of Women		1,077		1,146			(69	)
	314,884		327,521		12,637		Transportation and Government Services		327,521		341,499			(13,978	)
	2,866		3,316		450		Enabling Appropriations		3,316		32,819			(29,503	)
	48,512		45,909		(2,603	)	Other Appropriations		45,909		30,120			15,789
	—		—		—		Year-End Savings		—		(65,000	)		65,000
	6,737,588		6,950,179		212,591		Total Expenditure		6,950,179		6,928,059			22,120

Notes:

1.	Restated to reflect the 2002 Budget and the September 2002 reorganization of departments
2.	Preliminary Unaudited Expenditure
3.	Reflects 2002 Budget including the September 2002 reorganization of departments

PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF PART B — CAPITAL INVESTMENT
FOR THE YEAR ENDED MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

								2002/03
2001/02		2002/03		INCREASE
ACTUAL (1)		ACTUAL (2)		(DECREASE)				ACTUAL (2)		ESTIMATE (3)		VARIANCE
(thousands of dollars)								(thousands of dollars)
	56		148		92		Agriculture and Food		148		150		(2	)
	889		636		(253	)	Conservation		636		700		(64	)
	260		268		8		Energy, Science and Technology		268		300		(32	)
	1,308		2,049		741		Family Services and Housing		2,049		2,224		(175	)
	74		324		250		Finance		324		1,800		(1,476	)
	901		2,300		1,399		Health		2,300		4,500		(2,200	)
	1,488		1,627		139		Justice		1,627		1,490		137
	19,445		25,281		5,836		Transportation and Government Services		25,281		24,900		381
	16,619		12,426		(4,193	)	Enabling Appropriations		12,426		21,936		(9,510	)
	41,040		45,059		4,019		Total Capital Investment		45,059		58,000		(12,941	)

Notes:

1.	Restated to reflect the 2002 Budget and the September 2002 reorganization of departments
2.	Preliminary Unaudited Expenditure
3.	Reflects 2002 Budget including the September 2002 reorganization of departments

PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF VALUATION AND PURPOSE OF
DIRECT AND GUARANTEED DEBT OUTSTANDING
MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

Canadian		Canadian
Dollar		Dollar		Increase				Canadian		Canadian		Increase
Equivalent		Equivalent		(Decrease)				Dollar		Dollar		(Decrease)
at Date of		at Date of		March 31/03				Valuation		Valuation		March 31/03
Issue		Issue		over				(Note 1)		(Note 1)		over
March 31/03		March 31/02		March 31/02				March 31/03		March 31/02		March 31/02
(thousands of dollars)								(thousands of dollars)
							Direct Debt Payable in:
	11,840,549		11,835,290		5,259		Canadian Dollars		11,812,749		11,807,490		5,259
	3,209,198		2,962,401		246,797		Issues Swapped to Canadian Dollars		3,348,799		3,221,628		127,171
	2,493,251		3,055,916		(562,665	)	U.S. Dollars		2,813,877		3,734,567		(920,690	)
	1,433,767		1,403,111		30,656		Issues Swapped to U.S. Dollars		1,431,227		1,555,051		(123,824	)
	18,976,765		19,256,718		(279,953	)	Total Direct Debt		19,406,652		20,318,736		(912,084	)
							Guaranteed Debt Payable in:
	979,202		595,190		384,012		Canadian Dollars		979,202		595,190		384,012
	—		—		—		U.S. Dollars		—		—		—
	979,202		595,190		384,012		Total Guaranteed Debt		979,202		595,190		384,012
	19,955,967		19,851,908		104,059		Total Direct and Guaranteed Debt    (Note 2)		20,385,854		20,913,926		(528,072	)
	5,679,730		6,410,517		(730,787	)	Less: Sinking Fund Investments		5,679,730		6,410,517		(730,787	)
	151,850		100,444		51,406		Less: Debt Retirement Fund		151,850		100,444		51,406
	14,124,387		13,340,947		783,440		Net Direct and Guaranteed Debt    (Note 3)		14,554,274		14,402,965		151,309

See notes on following page.

PROVINCE OF MANITOBA
OPERATING FUND
STATEMENT OF VALUATION AND PURPOSE OF
DIRECT AND GUARANTEED DEBT OUTSTANDING
MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

NOTES:

1.	The Canadian Dollar Valuation is calculated using the foreign currency exchange rates in effect at March 31, 2002 and at March 31, 2003.
2.	Direct and Guaranteed Debt are payable in Canadian and U.S. dollars. As at March 31, 2003, total gross debt was payable 79% in Canadian dollars and 21% in U.S. dollars. Of this total, General Government Program Debt and Other Debt Debt was payable 97% in Canadian dollars (94% at March 31, 2002) and 3% in U.S. dollars (6% at March 31, 2002) while Manitoba Hydro debt was payable 47% in Canadian dollars (42% at March 31, 2002) and 53% in U.S. dollars (58% at March 31, 2002).
3.	The debt was issued for the following purposes:

	March 31, 2003				March 31, 2002
	(in thousands)		(per capita)		(in thousands)		(per capita)
			(Note 6)				(Note 6)
General Government Programs		6,354,604		5,523		6,406,112		5,571
The Manitoba Hydro-Electric Board		6,343,756		5,513		6,263,251		5,446
Capital Investments (Note 4)		294,900		256		244,900		213
Manitoba Hospital Facilities (Note 4)		445,000		387		390,000		339
Other		1,116,014		970		1,098,702		955
Total (Note 5)		14,554,274		12,649		14,402,965		12,524

4.	Capital Investments are the stock of tangible capital assets held by government. These are paid off over the useful life of the assets (see Main Estimates page 161 for details). Manitoba Hospital Facilities debt was recorded as Provincial debt for the first time in 2000/01. Previously, this debt was held in the name of individual health facilities at a higher overall cost to taxpayers. Hospital Facilities debt is repaid over terms up to 20 years.
5.	General Government Program Debt decreased by $51.4 million due to the deposit to the Debt Retirement Fund. All other debt increased $202.8 million due to the continued consolidation of Hospital Facilities debt on the Province’s records, combined with Provincial Part B Capital requirements and Manitoba Hydro’s new capital requirements, including the consolidation of Winnipeg Hydro’s debt, offset by an improved Canadian dollar.
6.	Per capita data is based upon population figures at January 1, 2003 as reported by Statistics Canada. Taxpayer supported debt, including debt for general government programs, decreased as a result of a net increase to the Debt Retirement Fund and a provision for non-cash items. Self-sustaining debt, including Manitoba Hydro, increased due to prefunding of self-sustaining debt and Manitoba Hydro’s capital requirements offset by a net increase in Manitoba Hydro’s sinking fund. Manitoba Hydro’s U.S. dollar revenues are sufficient to pay the interest and principal on all outstanding U.S. dollar debt.

PROVINCE OF MANITOBA
STATEMENT OF ACCUMULATED DEFICIT
FOR THE YEAR ENDED MARCH 31, 2003
(with comparative figures for March 21, 2002)
(UNAUDITED)

		2002/03			2001/02
		(thousands of dollars)
Accumulated Deficit, Beginning of Year			6,990,938			6,710,530
Prior years’ adjustments
	Recovery of 2000/01 Personal Income Tax Overpayment
	Re: Federal Accounting Error		—			287,097
	Capitalization of Tangible Capital Assets		15			(4,174	)
	Valuation Adjustment to Tangible Capital Assets (1)		5,423			—
Repurchase of Serial Debentures of School Divisions and Districts			(938	)		(2,515	)
Net Result for the year			—			—
Accumulated Deficit, End of Year			6,995,438			6,990,938

Note:

(1) As a subsequent review has determined that certain land values capitalized in 2001/02 had been overstated, an increase of $5,423 has been included in the accumulated deficit for the Province to recognize the required adjustment. Prior years’ adjustments to the accumulated deficit have no impact on the excess of revenue over expenses as set out in balanced budget legislation.

PROVINCE OF MANITOBA
DEBT RETIREMENT FUND
PROJECTION FOR THE YEAR ENDING MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

			2002/03
			Preliminary			2001/02
			Actual			Actual
			(thousands of dollars)
Fund Balance, Beginning of Year				100,444			75,227
Revenue:
	Interest Earnings			3,200			3,860
	Transfer from Operating Fund			96,357			96,357
				99,557			100,217
Expenditure:
	Transfer to Operating Fund for:
		- Debt Retirement		—			—
		- Pension Obligation (2)		(48,179	)		(75,000	)
				(48,179	)		(75,000	)
Fund Balance, End of Year				151,822			100,444

Notes:

(1)	Based on 2002 Budget
(2)	The actual allocation of funds has been determined by the Allocation Committee as per the Balanced Budget, Debt Repayment and Taxpayer Accountability Act.

PROVINCE OF MANITOBA
FISCAL STABILIZATION FUND
PROJECTION FOR THE YEAR ENDING MARCH 31, 2003
(with comparative figures for March 31, 2002)
(UNAUDITED)

		2002/03			2001/02
		Projection			Actual
		(thousands of dollars)
Fund Balance, Beginning of Year			247,254			320,494
Revenue:
	Interest Earnings		6,709			13,923
Interfund Transfers
	Transfer to the Operating Fund		(36,213	)		(150,000	)
	Transfer from the Operating Fund
	- Re: Year-End Surplus		3,501			62,837
			(32,712	)		(87,163	)
Fund Balance, End of Year			221,251			247,254