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

Province of Manitoba

2011/12 Quarterly Financial Report

April to December 2011

CONTENTS

Introduction

Quarterly Financial Results

Economic Performance and Outlook

INTRODUCTION   Budget 2011 provided the financial overview of the Government Reporting Entity (GRE), which includes core government and Crown organizations, government business entities and public sector organizations such as regional health authorities, school divisions, universities and colleges. Manitoba’s summary budget aligns with the accounting standards set by the Public Sector Accounting Board and fully reflects Generally Accepted Accounting Principles (GAAP). A summary budget presents a more complete picture of how the provincial government and the other related entities operate as a whole and what the total cost is of providing services and programs to people in Manitoba.     The financial information in this quarterly financial report is presented in the same format as the budget. The third quarter financial report presents information on the GRE for the nine months ending December 31, 2011, as well as an updated financial forecast for the current fiscal year.   Given the significance of the wide spread flooding this year, an update on the related one-time costs for 2011/12 is being presented separately.

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

2011 SPRING FLOOD UPDATE   The unprecedented flooding in 2011 continues to result in significant unbudgeted expenditures for flood fighting, mitigation work and financial assistance programs that are affecting the budgeted results for 2011/12. At the end of the third quarter, $532 million has been expended on the spring flood.   Projected costs of the disaster have been revised to $936 million from the $815 million projected at the end of the second quarter. The increase is primarily the result of higher costs for the Lake Manitoba financial assistance programs and a change in the classification of costs related to the restoration of bridges and dikes. The net impact of the flood effort is still reliant on the results of ongoing consultations with Canada respecting cost-sharing. Based on current cost projections, the provincial cost will be $491 million or $148 million higher than projected at the end of September. This includes the core government projection of $329 million, after anticipated federal     recoveries of $445 million, and $162 million reflected in Manitoba Agricultural Services Corporation for support related to excess moisture and unseeded acres.   The forecast of unbudgeted expenditures for the 2011 spring flood includes funding for the Building and Recovery Action Plan and other financial assistance of $610 million to support homeowners, businesses, First Nation communities and municipalities, as well as $326 million to support livestock and crop producers for AgriRecovery and excess moisture programs.   In addition, the projection for infrastructure expenditures is $106 million, down from the second quarter projection of $159 million, for the restoration of bridges, roads and dikes and the construction of the outlet channel to alleviate the pressure on Lake Manitoba and Lake St. Martin.

Year-to-Date Actual and Full Year Projection for the 2011 Spring Flood Costs

For the Fiscal Year Ending March 31, 2012

UNAUDITED

		00000000		00000000
Expenditure	December 31		Full Year
($000s)	Actual		Projection
Flood Fighting		81,029		116,869
Mitigation, Restoration and Floodproofing		40,719		95,172
Financial Assistance Programs
AgriRecovery		112,191		163,650
Lake Manitoba Financial Assistance (cottage, home, farm)		24,837		236,100
Hoop and Holler Compensation Program		3,467		8,625
Other Financial Assistance (municipal and individual)		103,701		149,129
Agri Insurance/Excess Moisture		161,795		162,000
Property Tax Relief Program		3,849		4,311
Subtotal Financial Assistance Programs		409,840		723,815
Total Expenditure		531,588		935,856

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

GOVERNMENT REPORTING ENTITY (GRE) Excluding 2011 Spring Flood Costs   The summary forecast for fiscal year 2011/12, net of flood related costs, is a summary net loss of $629 million, representing a modest improvement from the second quarter forecast and a negative variance of $194 million from the budgeted net loss of $435 million.   At the end of the third quarter, core government revenue is forecast to be $53 million lower than budget, primarily as a result of lower than budgeted income tax projections and timing of federal transfers for infrastructure renewal and the floodway expansion, offset by higher than budgeted retail sales tax.     Revenue forecasts for the Other Reporting Entities is $37 million higher than budget, resulting in the summary revenue variance that is $16 million lower than budget.   Projected expenditures in core government are slightly lower than forecast at the end of the second quarter but continue to be higher than budget, primarily due to pressures in the areas of supports for families ($59 million) and public safety and corrections ($29 million).  

Projection of Summary Net lncome/(Loss)

For the Fiscal Year Ending March 31, 2012

UNAUDITED

	2011/12 Third Quarter Forecast					2011/12 Budget
(Millions of Dollars)	Core Government		Consolidation Impacts and Other Reporting Entities		Summary	Core Government	Consolidation Impacts and Other Reporting Entities		Summary		Summary Variance
Revenue		10,719		2,659	13,378	10,772		2,622		13,394		(16)
Expenditure		11,416		2,664	14,080	11,348		2,626		13,974		106
In-Year Adjustment/Lapse		(33)		(40)	(73)	(65)		(80)		(145)		72
NET RESULT FOR THE YEAR		(664)		35	(629)	(511)		76		(435)		(194)
Transfer from Fiscal Stabilization Account		47		(47)	-	50		(50)		-		-
NET INCOME (LOSS) PRIOR TO 2011 SPRING FLOOD		(617)		(12)	(629)	(461)		26		(435)		(194)

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

QUARTERLY FINANCIAL RESULTS

The unaudited net result of the Government Reporting Entity for the first nine months of the fiscal year is a loss of $159 million prior to the inclusion of the 2011 spring flood costs. The nine month spring flood expenditures were $233 million higher as claims were processed faster than previously projected.

The nine-month negative revenue variance of $61 million is primarily due to timing of receipts from the federal government for income taxes and other federal transfers and lower than estimated results for the GBEs. The expenditure variance of $58 million is primarily the result of timing.

Government Reporting Entity Operating Statement

UNAUDITED

		00000000000		00000000000		00000000000		00000000000
	Year-to-Date to December 31
	2011/12						2010/11
($000s)	Actual		Estimated		Variance		Actual
Revenue
Income Taxes		2,210,860		2,215,613		(4,753)		2,030,587
Other Taxes		2,824,653		2,829,828		(5,175)		2,735,787
Fees and Other Revenue		1,342,614		1,346,719		(4,105)		1,278,499
Federal Transfers		2,932,054		2,955,029		(22,975)		2,990,230
Net Income of Government
Business Enterprises		436,202		476,172		(39,970)		547,605
Sinking Funds and Other Earnings		191,077		174,747		16,330		157,140
Total Revenue		9,937,460		9,998,108		(60,648)		9,739,848
Expenditure
Health and Healthy Living		3,864,936		3,864,067		869		3,710,449
Education		2,604,619		2,631,105		(26,486)		2,421,388
Family Services		737,818		749,506		(11,688)		713,432
Community, Economic and
Resource Development		1,677,604		1,724,926		(47,322)		1,645,377
Justice and Other Expenditures		601,954		606,968		(5,014)		606,880
Debt Servicing Costs		609,643		577,556		32,087		566,281
Total Expenditure		10,096,574		10,154,128		(57,554)		9,663,807
In-Year Adjustment/Lapse		-		-		-		-
Net Result		(159,114)		(156,020)		(3,094)		76,041
2011 Spring Flood Contingency
Expenditure		(531,588)		(298,820)		(232,768)		-
Recovery from Disaster Financial
Assistance		122,311		62,600		59,711		-
Total 2011 Spring Flood Contingency		(409,277)		(236,220)		(173,057)		-
NET INCOME (LOSS)		(568,391)		(392,240)		(176,151)		76,041

Core government revenue and expenditure details are provided in Appendix I and II on pages 10 and 11.

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

INFRASTRUCTURE AND CAPITAL ASSET RENEWAL     Expenditures for infrastructure and capital asset renewal in 2011/12 are forecast to be $1.5 billion to support continued economic growth and provide for the services Manitobans need in the future. The projects are supported by $55 million in federal funding.   Based on principles of sound financial management, Manitoba has been able to increase the assets of the province while maintaining a manageable level of debt. Budget 2011 continues to provide the resources for upgrading Manitoba’s roads and highways, wastewater treatment plants, health facilities across the province, building and restoring much needed social housing and modernizing our schools and post-secondary institutions.     As borrowings may be used to finance capital related projects, net debt may grow in absolute terms from time to time as needed investments in capital assets – like the Red River Floodway, highway infrastructure and economic stimulus investments – are made. It is therefore important to measure change in net debt against the growth of the economy. As a result of the decision to continue to invest in infrastructure projects to create jobs and stimulate the economy, an increase in the net debt to GDP ratio to 26.2% was projected in Budget 2011. For fiscal year 2011/12, summary net debt to GDP is currently forecast to 26.1%.   At the end of the third quarter, $519 million in core government capital investments have been made, with a projected investment of $746 million by fiscal year end.   Core government capital investment details are provided in Appendix III on page 12. SPECIAL ACCOUNTS   Fiscal Stabilization The budgeted draw for 2011/12 includes health-related programming of $25 million and $8 million for requirements related to ecoTrust funds.   Manitoba’s five-year economic plan incorporated a legislated requirement to dedicate at least $600 million of the funds set aside in this Account to retire a portion of the debt and interest expense associated with the core government operating shortfalls during the economic recovery period. In 2011/12, $110 million will be withdrawn for debt repayment, as well as $14 million for the interest expense associated with the core government operating shortfall.   Pension Assets The trust conditions of the funds held in the Pension Asset Fund are irrevocably restricted for pension purposes only. As a result of this restriction, these funds are classified as pension assets and will be accounted for and reported in keeping with GAAP for senior governments.   The fund balance is projected to increase in 2011/12 as government continues to address the unfunded liability for the Civil Service Superannuation Fund and net investment earnings.   Net investment earnings include the expected rate of return during the year and adjustments to market related value. Under GAAP, market fluctuations of pension assets are not recorded in the year in which they occur, but are recognized over the employee average remaining service life (EARSL).

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

PROVINCIAL BORROWINGS, GUARANTEES AND OBLIGATIONS   Manitoba’s borrowing requirement identified in the 2011 Budget was $3.8 billion including refinancing of $2.0 billion and new cash requirements of $2.7 billion, offset by prefunding of $489 million and estimated repayments of $412 million.   New cash requirements are necessary for general government purposes, capital investments by departments, health facilities, post-secondary institutions, Manitoba Hydro and for the funding of the unfunded pension liability for the Civil Service Superannuation Plan. Estimated repayments are primarily for departmental capital investment and general purpose borrowings.   At the end of the third quarter, Manitoba’s borrowing requirement has been revised to $4.7 billion. The revision is primarily for general purpose debt to fund the costs related to the significant flooding event pending timing of recoveries from the federal government.     The total of outstanding borrowings, guarantees and obligations reflect the province’s gross borrowing obligations, but it does not take into consideration liquid assets available to pay down those obligations. The total of outstanding provincial borrowings fluctuates during the fiscal year as a result of the timing of borrowing activities of the province. The forecast for the year end is shown in the table on the following page.

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

Provincial Borrowings, Guarantees and Obligations

		0000000000		0000000000		0000000000		0000000000
	2011/12 Forecast				March 31, 2011
Provincial Borrowings, Guarantees and Obligations1	$ millions		$ Per Capita*		$ millions		$ Per Capita*
General Government Programs		7,789		6,228		6,925		5,535
General Government Programs - Federal Flood Relief		326		261		-		-
General Government Programs - Pensions2		2,595		2,075		2,355		1,882
Manitoba Hydro		9,101		7,277		8,362		6,684
Other Crown Organizations		1,868		1,494		1,641		1,312
Health Facilities		1,074		859		1,015		811
Government Enterprises and Other		41		33		51		41
Capital Investments		3,183		2,545		2,546		2,035
Subtotal3		25,977		20,772		22,895		18,300
Other Obligations
Pension Liability		6,780				6,600
Pension Assets		(5,076)				(4,828)
Net Pension Liability		1,704				1,772
Debt incurred for and repayable by the Manitoba Hydro Electric Board, net of sinking funds		(8,847)				(8,199)
Education and Health Debt held by Government Enterprises		499				471
Other Debt of Crown Organizations, net of sinking funds		255				263
Subtotal		(6,389)				(5,693)
Total Provincial Borrowings, Guarantees and Obligations		19,588				17,202
Adjustments to arrive at Summary Net Debt
Guarantees		(254)				(165)
Net Financial Assets		(4,490)				(4,370)
Summary Net Debt4		14,844		11,870		12,667		10,125
Summary Net Debt as a percentage of GDP		26.1%				23.3%

Notes: Provincial Borrowings, Guarantees and Obligations

1. Provincial borrowings, guarantees and obligations are net of sinking funds.

2. In 2011/12, the Government plans to allocate an additional $240 million to address pension obligations for the civil service.

3. Provincial Borrowings and Guarantees are payable in Canadian and U.S. dollars. As at December 31, 2011, total provincial borrowings and guarantees were payable 93% in Canadian dollars and 7% in U.S. dollars. Of this total, General Government Program borrowings and Other Crown Organizations borrowings were 100% payable in Canadian dollars. Manitoba Hydro borrowings were payable 78% in Canadian dollars (78% at March 31, 2011) and 22% in U.S. dollars (22% at March 31, 2011).

4. Net financial assets and summary net debt as a percentage of GDP include the projected impact of other comprehensive income (OCI). Changes in OCI are based upon market value measurements at year end, and reflect a change to the book value of investments held by GBEs and the value of the Canadian dollar against the U.S. dollar on U.S. debt held by Manitoba Hydro. The OCI forecast does not impact summary net income.

* The per capita data for 2011/12 is based upon population figures at July 1, 2011, and the March 31, 2011 per capita data is based upon population figures at July 1, 2010 as reported by Statistics Canada.

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

ECONOMIC PERFORMANCE AND OUTLOOK

The Manitoba economy continues to expand at a stable and modest pace. Despite a sharp decrease in agricultural production, due to wet weather conditions, Manitoba’s real GDP increased by 2.2% in 2011 following a 2.3% gain in 2010, according to estimates from the Manitoba Bureau of Statistics.

Manitoba’s economic growth is expected to improve slightly over the next two years. The Manitoba Finance survey of economic forecasters conducted on February 27, 2012, projects that Manitoba’s real GDP will expand 2.3% in 2012, above the national increase of 2.0%. In 2013, Manitoba’s real GDP is expected to increase 2.5%, also above the projected national increase of 2.4%.

Despite the steady outlook for Manitoba, the current global economic circumstances remain fragile, with significant downside risks in several key regions of the world. While the employment situation is improving in the U.S., the precarious fiscal austerity measures and financial markets in Europe are weighing down on near-term global demand for goods and services. For Manitoba, the challenges also include the strengthening Canadian dollar and soil moisture conditions for agriculture and related industries.

After a sharp 1.9% increase in 2010, Manitoba employment expanded by 0.8% in 2011. Full-time employment increased 1.0% while part-time employment decreased 0.2%. Manitoba’s labour force also increased 0.8% in 2011, maintaining the average unemployment rate at 5.4%. Manitoba’s unemployment rate was the second-lowest among provinces and below the national rate of 7.4%. Manitoba’s youth unemployment rate was 11.6%, third lowest in Canada.

Manitobans’ average weekly earnings improved in 2011, with 2.9% growth compared to 2.0% in 2010. Canadian average weekly earnings increased 2.6% in 2011. Full-time employment growth combined

with a rise in weekly earnings contributed to a 4.8% gain in labour income in 2011.

Manitoba’s retail sales rose 4.6% in 2011. National retail sales increased 3.6%. Manitoba’s increase is sixth highest among provinces. Manitoba’s retail sales increases have matched or been at the national average in all but one of the last 11 years.

The housing sector is robust in Manitoba. After surging 41.1% in 2010, Manitoba housing starts increased 3.3% in 2011 to a 24-year record 6,083 units. A 17.8% increase in construction of multiple units (apartments and semi-detached homes) is partially offset by a 3.6% decrease in single-detached family unit starts. Canada’s housing starts were up 2.1% in 2011.

Manitoba’s economy has benefitted from an increase in business capital spending on residential and non-residential projects. Over the last five years, Statistics Canada estimates that real business investment increased almost 30%, the second-strongest increase in real investment among provinces and significantly above the 1% national increase over the same period.

Despite the strengthening Canadian currency, Manitoba’s manufacturing sector continued to expand in 2011. Last year, the value of manufacturing sales increased 6.1%. The principal increases were in chemical products (34%), machinery equipment (25%), primary metals (13%) and aerospace parts (9%). Decreases were in electrical appliances (16%) and printing materials (12%).

Consistent with the increase in manufacturing sales, the value of foreign merchandise exports increased 15.1% in 2011. Manitoba exports to the U.S. are up 10.5% while non- U.S. exports increased 23.3%.

Given the growth in exports to non-U.S. destinations, Manitoba has been successful

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

in finding diversified markets for its products. Ten years ago, non-U.S. markets accounted for 22% of total exports. In 2011, that proportion has increased to 39%, well above the 27% non-U.S. share for Canada. Sales from Manitoba to China have increased 19% annually over the past decade, while exports to India have increased by an average of 10% annually.

In 2011, Manitoba farm cash receipts are up 0.8%. Crop receipts decreased 8.8% due to declines in canola and flax receipts. Livestock receipts were up 6.7%, with strength in hog receipts partially offset by weakness in cattle. Direct payments (crop insurance and other programs) increased 45.8%.

The Consumer Price Index (CPI) increased 3.0% in 2011, slightly above the 2.9% national increase. Transportation and food costs boosted overall consumer prices, while

clothing and footwear and household operations costs eased pressure on prices in 2011. For 2012, Manitoba Finance’s survey of economic forecasts indicates CPI inflation will average about 1.8% in both Manitoba and Canada.

Population growth has been a key factor in driving recent economic growth in the province. On October 1, 2011, Manitoba’s population reached 1,254,658, an annual increase of 15,694 persons. The year-over-year gain in population is the second highest in at least 40 years. Manitoba’s population grew 1.3% from the previous year, ahead of Canada’s increase of 1.0% and third among provinces.

For updates and more details please see the Manitoba Economic Highlights at:

http://www.gov.mb.ca/finance/pdf/highlights.pdf

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

2011/12 Core Government Revenue by Source UNAUDITED Appendix I

		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000
	Year-to-Date to December 31								Full Year
	2011/12						2010/11		2011/11						2010/11
($000s)	Actual		Estimated		Variance		Actual		Forecast		Budget		Variance		Actual
Income taxes
Individual Income Tax		1,937,745		1,932,591		5,154		1,817,169		2,695,700		2,724,800		(29,100)		2,591,827
Corporation Income Tax		273,115		283,022		(9,907)		213,418		423,200		423,400		(200)		329,918
Subtotal: Income Taxes		2,210,860		2,215,613		(4,753)		2,030,587		3,118,900		3,148,200		(29,300)		2,921,745
Other Taxes
Corporations Taxes		134,267		135,290		(1,023)		177,498		188,512		188,000		512		225,119
Fuel Taxes		186,524		186,488		36		183,975		247,200		247,200		-		241,423
Land Transfer Tax		55,346		54,535		811		49,699		63,400		62,500		900		58,697
Levy for Health and Education		296,585		296,980		(395)		280,837		390,400		395,400		(5,000)		373,944
Mining Tax		35,300		35,000		300		9,384		35,000		35,000		-		41,954
Retail Sales Tax		1,307,505		1,302,164		5,341		1,250,803		1,691,100		1,671,100		20,000		1,618,412
Tobacco Tax		189,226		191,198		(1,972)		178,942		245,400		253,400		(8,000)		233,658
Other Taxes		13,654		12,176		1,478		7,794		15,752		11,490		4,262		13,759
Subtotal: Other Taxes		2,218,407		2,213,831		4,576		2,138,932		2,876,764		2,864,090		12,674		2,806,966
Fees and Other Revenue
Fines and Costs and Other Legal		36,522		37,215		(693)		37,421		48,837		50,582		(1,745)		48,590
Minerals and Petroleum		27,252		22,466		4,786		19,690		30,620		22,314		8,306		25,682
Automobile and Motor Carrier Licences and Fees		102,447		99,717		2,730		96,794		131,066		130,026		1,040		131,322
Parks: Forestry and Other Conservation		23,139		22,537		602		24,979		28,677		29,379		(702)		28,888
Water Power Rentals		85,774		85,493		281		84,361		115,000		115,000		-		114,850
Service Fees and Other Miscellaneous Charges		65,942		65,147		795		70,277		136,668		135,842		826		136,436
Revenue Sharing from SOAs		19,073		19,073		-		19,073		26,180		26,180		-		25,430
Subtotal: Fees and Other Revenue		360,149		351,648		8,501		352,595		517,048		509,323		7,725		511,198
Federal Transfers
Equalization		1,525,247		1,525,248		(1)		1,545,012		1,941,728		1,941,700		28		2,001,518
Canada Health Transfer (CHT)		749,846		750,819		(973)		711,959		999,853		1,002,200		(2,347)		948,896
Canada Social Transfer (CST)		312,145		311,537		608		303,049		417,058		416,000		1,058		404,249
Health Funds		6,791		6,758		33		7,066		9,000		9,000		-		11,800
Infrastructure Renewal		-		-		-		(145)		37,800		66,500		(28,700)		41,514
Economic Stimulus		-		-		-		525		16,763		17,903		(1,140)		87,889
Manitoba Floodway Expansion		2,160		5,439		(3,279)		8,665		11,531		22,491		(10,960)		16,639
Shared Cost and Other Transfers		109,484		110,991		(1,507)		124,252		178,355		172,022		6,333		215,006
Subtotal: Federal Transfers		2,705,673		2,710,792		(5,119)		2,700,383		3,612,088		3,647,816		(35,728)		3,727,511
Net Income of Government
Business Enterprises (GBEs)
Manitoba Liquor Control Commission		155,557		149,200		6,357		156,000		250,416		254,800		(4,384)		250,496
Manitoba Lotteries Corporation		252,000		252,000		-		233,750		344,200		348,300		(4,100)		332,101
Subtotal: Net Income of GBEs		407,557		401,200		6,357		389,750		594,616		603,100		(8,484)		582,597
Total Revenue		7,902,646		7,893,084		9,562		7,612,247		10,719,416		10,772,529		(53,113)		10,550,017

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

2011/12 Core Government Expenditure by Sector/Department UNAUDITED Appendix II

		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000
	Year-to-Date to December 31								Full Year
	2011/12						2010/11		2011/12						2010/11
($000s)	Actual		Estimated		Variance		Actual2		Forecast		Budget1		Variance		Actual2
Health and Healthy Living
Health		3,576,833		3,501,033		75,800		3,399,899		4,866,660		4,919,938		(53,278)		4,672,687
Healthy Living, Seniors and Consumer Affairs		43,268		46,037		(2,769)		37,476		57,134		58,040		(906)		51,489
Total Health and Healthy Living		3,620,101		3,547,070		73,031		3,437,375		4,923,794		4,977,978		(54,184)		4,724,176
Education
Advanced Education and Literacy		498,523		506,365		(7,842)		473,112		656,727		661,627		(4,900)		620,083
Education		1,220,530		1,221,928		(1,398)		1,135,632		1,588,937		1,586,223		2,714		1,508,831
Total Education		1,719,053		1,728,293		(9,240)		1,608,744		2,245,664		2,247,850		(2,186)		2,128,914
Family Services
Children and Youth Opportunities		34,080		39,285		(5,205)		28,371		42,898		43,201		(303)		42,907
Family Services and Labour		712,572		718,369		(5,797)		669,059		1,021,198		962,138		59,060		940,482
Total Family Services		746,652		757,654		(11,002)		697,430		1,064,096		1,005,339		58,757		983,389
Community, Economic and Resource Development
Aboriginal and Northern Affairs		23,352		29,117		(5,765)		26,303		35,390		38,685		(3,295)		37,973
Agriculture, Food and Rural Initiatives		156,482		162,529		(6,047)		126,477		249,446		230,503		18,943		192,230
Conservation and Water Stewardship		114,684		118,411		(3,727)		114,973		155,015		157,126		(2,111)		149,991
Entrepreneurship, Training and Trade		406,298		424,790		(18,492)		399,732		586,878		575,013		11,865		581,683
Housing and Community Development		67,710		76,987		(9,277)		52,057		83,630		83,667		(37)		51,833
Infrastructure and Transportation		414,370		418,081		(3,711)		385,541		617,807		598,540		19,267		589,643
Innovation, Energy and Mines		69,661		73,279		(3,618)		68,887		96,008		89,714		6,294		87,395
Local Government		214,588		245,476		(30,888)		205,977		320,091		311,980		8,111		313,771
Total Community, Economic and
Resource Development		1,467,145		1,548,670		(81,525)		1,379,947		2,144,265		2,085,228		59,037		2,004,519
Justice and Other Expenditures
Legislative Assembly		39,342		40,557		(1,215)		27,428		54,870		55,284		(414)		37,132
Executive Council		3,334		3,295		39		3,015		4,092		4,092		-		4,123
Civil Service Commission		14,959		15,394		(435)		14,780		21,256		21,656		(400)		19,284
Culture, Heritage and Tourism		49,013		51,680		(2,667)		48,782		63,929		63,824		105		62,246
Employee Pensions and Other Costs		(4,384)		(4,486)		102		(4,422)		12,156		15,817		(3,661)		8,715
Finance		71,623		72,567		(944)		73,916		86,787		88,576		(1,789)		89,956
Immigration and Multiculturalism		24,744		25,542		(798)		22,877		42,858		42,858		-		38,078
Justice		303,756		310,601		(6,845)		285,794		458,262		429,375		28,887		421,948
Sport		8,905		8,904		1		9,180		11,959		11,959		-		12,665
Enabling Appropriations		2,897		3,009		(112)		13,038		4,400		10,578		(6,178)		3,376
Other Appropriations		21,186		16,000		5,186		45,439		30,151		30,151		-		118,400
Total Justice and Other Expenditures		535,375		543,063		(7,688)		539,827		790,720		774,170		16,550		815,923
Debt Servicing Costs		191,392		165,936		25,456		186,262		247,000		257,785		(10,785)		233,200
Total Expenditure		8,279,718		8,290,686		(10,968)		7,849,605		11,415,539		11,348,350		67,189		10,890,121
Subtract: Total Revenue Estimate (Appendix l)		7,902,646		7,893,084		9,562		7,612,247		10,719,416		10,772,529		(53,113)		10,550,017
In-Year Adjustment/Lapse		-		-		-		-		(32,500)		(65,000)		32,500		-
Net Result for the Year		(377,072)		(397,602)		20,530		(237,358)		(663,623)		(510,821)		(152,802)		(340,104)
2011 Spring Flood Contingency
Expenditure		(369,794)		(298,820)		(70,974)		-		(773,857)		(30,000)		(743,857)		-
Recovery from Disaster Financial Assistance		122,311		62,600		59,711		-		444,556		27,000		417,556		-
Total 2011 Spring Flood Contingency		(247,483)		(236,220)		(11,263)		-		(329,301)		(3,000)		(326,301)		-
Transfer from Fiscal Stabilization Account		-		-		-		-		46,500		49,500		(3,000)		35,300
NET INCOME (LOSS)		(624,555)		(633,822)		9,267		(237,358)		(946,424)		(464,321)		(482,103)		(304,804)

1. Budget figures are adjusted to include Enabling Appropriations.

2. For comparative purposes the 2010/11 Actual has been re-stated to reflect the 2011/12 appropriation structure.

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PROVINCE OF MANITOBA APRIL TO DECEMBER 2011

2011/12 Core Government Capital Investment UNAUDITED Appendix III

		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000
	Year-to-Date to December 31								Full Year
	2011/12						2010/11		2011/12						2010/11
($000s)	Actual		Estimated		Variance		Actual		Forecast		Budget1		Variance		Actual
General Assets
Government Services Capital Projects		75,370		84,840		(9,470)		73,245		111,890		147,336		(35,446)		105,078
Transportation Equipment and Aircraft		58,844		42,167		16,677		40,201		72,616		76,403		(3,787)		55,633
Information Technology Projects		6,987		13,473		(6,486)		8,650		20,524		20,455		69		18,635
Other Equipment and Buildings		4,845		2,379		2,466		2,401		9,179		21,816		(12,637)		9,826
		146,046		142,859		3,187		124,497		214,209		266,010		(51,801)		189,172
Infrastructure Assets
Provincial Roads, Highways and Airport Infrastructure		245,712		255,817		(10,105)		272,658		316,707		368,000		(51,293)		359,030
Manitoba Floodway Expansion		54,966		75,939		(20,973)		58,211		111,466		133,133		(21,667)		73,816
Water Control Infrastructure		62,486		91,228		(28,742)		4,753		87,800		24,150		63,650		24,742
Parks, Cottage and Camping Projects		9,835		8,142		1,693		7,911		15,796		16,757		(961)		13,719
		372,999		431,126		(58,127)		343,533		531,769		542,040		(10,271)		471,307
Total Capital Investment		519,045		573,985		(54,940)		468,030		745,978		808,050		(62,072)		660,479

1. Budget figures are adjusted to include Enabling Appropriations.

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