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

Exhibit 99.1

STEADY GROWTH

GOOD JOBS          

April to June 2015

CONTENTS

Introduction

Quarterly Financial Results

Economic Performance and Outlook

INTRODUCTION

Budget 2015 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 (PSAB) and fully reflects Generally Accepted Accounting Principles (GAAP). The financial information in this quarterly financial report is presented in the same format as the budget. The first quarter financial report presents information on the GRE for the three months ending June 30, 2015. The report also contains an economic performance and outlook. Consistent with prior years, an updated projection for the year end will be provided in the second quarter report.

- 1 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

GOVERNMENT REPORTING ENTITY (GRE)

Manitoba remains committed to a balanced approach for delivering services while recognizing that global economic conditions remain uncertain. This approach is demonstrated by the protection of the services Manitoba families count on and by making strategic investments in core infrastructure to support economic growth and create new training and job opportunities. Funding pressures in areas such as health and supports for children and vulnerable persons will be closely monitored and more complete information on expenditure and revenue will provide the basis for a year end projection in the second quarter report.

Budgeted Summary Net Income/(Loss)

For the Fiscal Year Ending March 31, 2016

UNAUDITED

	2015/16 Budget
(Millions of Dollars)	Core Government			Consolidation Impacts and Other Reporting Entities			Summary
Revenue		12,354			2,609			14,963
Expenditure		12,865			2,670			15,535
In-Year Adjustment/Lapse*		(70	)		(80	)		(150	)
NET INCOME (LOSS)		(441	)		19			(422	)

- 2 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

QUARTERLY FINANCIAL RESULTS

The unaudited net result of the GRE for the first three months of the fiscal year is a loss of $269 million.   The three-month positive revenue variance of $32 million is primarily due to higher than estimated Government Business Enterprises net income and higher fees and other revenue as a result of timing. The expenditure variance of $(91) million is primarily the result of timing.

Government Reporting Entity Operating Statement

UNAUDITED

	Year-to-Date to June 30
	2015/16									2014/15 Actual1
($000s)	Actual			Estimated			Variance
Revenue
Income Taxes		951,911			957,558			(5,647	)		985,766
Other Taxes		892,971			887,458			5,513			843,462
Fees and Other Revenue		493,853			477,160			16,693			477,117
Federal Transfers		1,009,897			1,009,585			312			970,837
Net Income of Government Business Enterprises		165,220			148,449			16,771			138,860
Sinking Funds and Other Earnings		55,904			57,600			(1,696	)		63,240
Total Revenue		3,569,756			3,537,810			31,946			3,479,282
Expenditure
Health, Healthy Living and Seniors		1,597,242			1,612,649			(15,407	)		1,587,430
Education and Advanced Learning		1,167,914			1,219,024			(51,110	)		893,551
Family Services		281,371			292,839			(11,468	)		257,046
Community, Economic and Resource Development		447,723			450,235			(2,512	)		419,131
Justice and Other Expenditures		240,588			254,144			(13,556	)		246,697
Debt Servicing Costs		103,476			100,456			3,020			126,789
Total Expenditure		3,838,314			3,929,347			(91,033	)		3,530,644
NET INCOME (LOSS)		(268,558	)		(391,537	)		122,979			(51,362	)

1. For comparison purposes, the 2014/15 Actual has been re-stated to reflect the 2015/16 appropriation structure.

Core government revenue and expenditure details are provided in Appendix I and II on pages 9 and 10 and information on core government capital investment can be found in Appendix III on page 11.

- 3 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

INFRASTRUCTURE INVESTMENT

The government continued the commitment to infrastructure by introducing a five-year, $5.5 billion core infrastructure plan in Budget 2014 to focus investments on roads, highways and bridges, flood protection and municipal infrastructure such as roads and clean water. Expenditures for core infrastructure investment in 2015/16 are budgeted to be $1,080 million.   To meet these important infrastructure needs, the government has committed that it will invest more than the revenue raised from the additional point of PST introduced in 2013 into new investments in core infrastructure, over and above the existing base levels. In 2012/13, prior to the increase in the PST, the base level of investment in core infrastructure totaled $729 million.   The 2015/16 budget for core infrastructure of $1,080 million exceeds the investment commitment of $1,015 million, calculated as the base funding level of $729 million plus the equivalent of one percentage point of PST revenue, estimated at $286 million in 2015/16. The investment in 2015/16 includes $35 million of support from the federal government.   From 2014/15 to 2018/19, revenues associated with the one-point increase in the PST are estimated at $1.5 billion. As shown in the table below, beginning in 2014/15, core infrastructure investment projected for the five-year plan will reach over $5.5 billion, exceeding the government’s PST commitment by $386 million. While the 2013/14 fiscal year is outside of the plan, the $5.5 billion level of investment is enough to offset the variance in 2013/14 and is also flexible enough to accommodate revenue offsets that may be received under the Building Canada Plan or other federal cost-sharing initiatives.   The core infrastructure plan will be reviewed and rebased each year to recognize any variances in the PST revenues and investments. A projection to budget will be provided in the second quarter report.

Five-Year Core Infrastructure Plan

	Base		2013/14 Actual			2014/15 Actual			2015/16 Budget			2016/17 Projection		2017/18 Projection		2018/19 Projection		Total
			(Millions of Dollars)
Roads, Highways and Bridges		478		533			696			747			755		762		771		3,731
Flood Protection		21		78			64			48			54		68		104		338
Muncipal Infrastructure*		230		256			277			285			300		312		326		1,500
Planned Investment		729		867			1,037			1,080			1,109		1,142		1,201		5,569
Base Funding Level		729		729			729			729			729		729		729		3,645
1 point PST commitment				190			275			286			299		312		326		1,498
Investment Commitment				919			1,004			1,015			1,028		1,041		1,055		5,143
Less: Federal Cost-sharing				(23	)		(5	)		(35	)		-		-		-		(40	)
Net Investment Over/(Under) Commitment				(75	)		28			30			81		101		146		386

*Building Manitoba Fund net of transit operating grants

- 4 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

SPECIAL ACCOUNTS   Fiscal Stabilization   Manitoba’s balanced financial strategy maintains the 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 incurred during the economic recovery period. In 2015/16, $85 million will be withdrawn for debt repayment and an additional $20 million will be withdrawn for principal repayment.   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 2015/16 for 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). PROVINCIAL BORROWINGS, GUARANTEES AND OBLIGATIONS   Manitoba’s borrowing requirement identified in Budget 2015 was $4.7 billion including refinancing of $2.0 billion and new cash requirements, net of estimated repayments, of $2.7 billion.   New cash requirements are necessary for general government purposes, capital investments by departments, health facilities, post-secondary institutions and Manitoba Hydro. Estimated repayments are primarily for departmental capital investment and general purpose borrowings.   The total of outstanding borrowings, guarantees and obligations reflects the province’s gross borrowing obligations, but it does not take into consideration liquid assets available to pay down those obligations. While the total of outstanding provincial borrowings fluctuates during the fiscal year as a result of the timing of borrowing activities of the province, the year end forecast remains unchanged from that stated in the budget, as shown in the table on the following page.   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 core infrastructure and other capital assets – like schools and hospitals – 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 and other projects, Budget 2015 projected the net debt to GDP ratio at 30.9%.   An updated forecast for 2015/16 with comparative data for 2014/15 actual results will be provided in the second quarterly report.

- 5 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

	2015/16 Budget
Provincial Borrowings, Guarantees and Obligations1	$ millions			$ Per Capita3
General Government Programs		9,919			7,649
General Government Programs - Pension Liability		2,695			2,078
The Manitoba Hydro-Electric Board		14,171			10,928
Other Crown Organizations		3,034			2,340
Health Facilities		1,535			1,184
Other		5			4
Capital Investments		4,941			3,810
Subtotal2		36,300			27,993
Other Obligations
Pension Liability		8,365
Pension Assets		(5,961	)
Net Pension Liability		2,404
Debt incurred for and repayable by The Manitoba Hydro-Electric Board		(14,153	)
Education and Health Debt held by Government Enterprises		720
Other Debt of Crown Organizations		281
Subtotal		(10,748	)
Total Provincial Borrowings, Guarantees and Obligations		25,552
Adjustments to arrive at Summary Net Debt
Guarantees		(150	)
Adjustment Due to the Adoption of IFRS by The Manitoba Hydro-Electric Board		(502	)
Net Financial Assets		(4,474	)
Summary Net Debt		20,426			15,751
Summary Net Debt as a percentage of GDP		30.9	%

Notes: Provincial Borrowings, Guarantees and Obligations

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

2. Provincial borrowings and guarantees are payable in Canadian and U.S. dollars. As at June 30, 2015, total provincial borrowings and guarantees were payable 95% in Canadian dollars and 5% in U.S. dollars. Of this total, General Government Program borrowing and Other Crown organizations borrowings were 100% payable in Canadian dollars. Manitoba Hydro borrowings were payable 87% in Canadian dollars (86% at March 31, 2015) and 13% in U.S. dollars (14% at March 31, 2015).

3. The per capita data is based upon forecast population figures as presented in Budget 2015.

- 6 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

ECONOMIC PERFORMANCE AND OUTLOOK

Economic growth in North America has unfolded more slowly than was anticipated earlier in the year. A sharp reduction in capital spending in the oil sector coupled with harsh winter conditions contributed to weak real GDP growth in the U.S. and a recession in Canada through the first half of 2015.   With increased volatility in the Chinese stock market coupled with a fragile housing market, concerns of a deepening economic slowdown in China are growing. However, the International Monetary Fund (IMF) is still projecting 6.8% real GDP growth for China in 2015, down from 7.4% in 2014, and in line with the Chinese government’s target.   The euro area is expected to emerge out of recession with an expected 0.8% growth in 2015 and 1.5% growth in 2016.   The weakness in North America has prompted the IMF to lower its global economic forecast for 2015 by 0.2% to 3.4%, the slowest growth since the 2010 recovery.   The outlook for U.S. economic growth in 2015 was lowered by 0.6% from 3.1% to 2.5% since Budget 2015. Canada’s growth was lowered by 0.7% from 2.1% to 1.4% for 2015. Real GDP growth prospects for all provinces were also revised down since Budget 2015.   Given the oil price collapse and generally weak performance of the Canadian economy, the Bank of Canada lowered its key lending rate by 0.25% in January and by another 0.25% in July 2015.   According to the latest Manitoba Finance survey of economic forecasters, Manitoba’s real GDP is now expected to increase by 2.0%, in 2015, down 0.5% from Budget 2015. Manitoba currently ranks third strongest among provinces in 2015 following British Columbia and Ontario. For 2016, Manitoba’s real GDP is expected to advance by 2.4%. Nominal GDP in 2015 is expected to increase by 3.2% in Manitoba, down 0.6% from Budget 2015. Manitoba ranks third best nationally following Ontario and British Columbia.   A review of major economic indicators shows mixed results in Manitoba through the first half of 2015.   Consumer prices are rising slower in Manitoba compared to many other provinces. Lower fuel prices are moderating the inflation rate. On a year-to-date basis in 2015, Manitoba’s inflation rate is 0.9%. Canadian inflation rate is averaging 1.0% in 2015.   Manitoba’s labour market has been relatively strong in 2015. Overall employment is up by 12,100 workers, or 1.9% in the first eight months of 2015 relative to the same period in 2014, the strongest among provinces and more than double the national growth of 0.9%. Full-time employment is up by 14,100 workers while part-time employment is down 2,000 workers.   Through August 2015, Manitoba’s unemployment rate averaged 5.6%, the third lowest among provinces and below the Canadian average unemployment rate of 6.8%.   Compensation of employees (labour income) is up 3.3% so far in 2015. Earnings growth is led by the construction (12.1%), and agriculture (8.8%) industries.   Manitoba’s manufacturing sales are down by 0.3% through the first six months of 2015. The contraction in overall shipments reflects lower sales in machinery equipment (16%) and food products (8.9%). Sales of transportation equipment (18%), chemicals (13%) and furniture (12%) continue to increase at a solid pace.

- 7 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

Total exports from Manitoba are up 0.6% in 2015. Positive growth in sales to the U.S. continues on the strengths of transportation equipment and chemical sales. Exports to the U.S. are up 2.4% so far in 2015. Exports to Manitoba’s non-U.S. markets have decreased by 3.4% in 2015, down from a 5.0% increase in 2014.   Lower fuel prices are factoring into the weak overall retail sales in Canada. Three provinces are showing a decline in total retail sales while Manitoba sales are up by 0.2% in 2015. In Manitoba, sales declined in gasoline stations (16.7%), electronics and appliances (4.8%) and rose in personal services (16.7%), hardware and building supplies (7.8%), clothing (6.1%), department stores (4.1%), furniture sales (3.6%), and motor vehicles (2.7%). Retail sales, excluding gasoline stations, are up by 2.6%.   Statistics Canada indicates continued strength in capital expenditures in Manitoba in 2015. Nominal investment in non-residential building construction increased by 8.0% in the second quarter of 2015 compared to the same quarter of 2014. These investments are led by a 19.2% increase in commercial buildings.   The total value of investment in residential construction rose 3.8% in the first half of 2015 compared with the same period in 2014. Renovation spending (27.6%) accounted for much of the gain in Manitoba. Investment in new dwellings was down 13.9% in the first half of 2015.   Correspondingly, in the first six months of 2015, Manitoba’s all area housing starts decreased 10.4%, fifth among provinces and below the national 0.2% increase. Single starts were down 22.2% (1,052) and multiples were up 2.7% (1,263). Over the last three years, Manitoba’s population growth has been the third fastest growing in Canada following Alberta and Saskatchewan. Population growth has averaged above 16,000 persons annually over this period, levels we have not seen since the late 1950’s.   In 2014, Manitoba’s population increased by 16,634 persons. Net international migration increased to 14,717 persons up from 11,605 persons in 2013. The natural increase in population was 5,731 persons while the net interprovincial out migration was 6,192 persons.   As of April 1, 2015, according to Statistics Canada, Manitoba’s population stood at 1,272,200, an increase of 15,606 persons, and a 12-month increase of 1.2%.   In the first quarter of 2015, Manitoba farm cash receipts are up by 1.8%, fifth highest among provinces. Crop receipts decreased 3.3%. Livestock receipts were up 5.4%. Cattle receipts were up 34.1% and hog receipts were down 8.8%. Direct payments, which include insurance and various types of income supports, increased by 68.2%.   For monthly updates and more details please see the Manitoba Economic Highlights and Statistics at:   http://www.gov.mb.ca/finance/pdf/highlights.pdf   and   http://www.gov.mb.ca/finance/pdf/statistics.pdf

- 8 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

2015/16 Core Government Revenue by Source	Appendix I
UNAUDITED

	Year-to-Date to June 30									Full Year
	2015/16							2014/15		2015/16
($000s)	Actual		Estimated		Variance			Actual		Budget
Income taxes
Individual Income Tax		699,245		700,442		(1,197	)		765,314		3,261,845
Corporation Income Tax		252,666		257,116		(4,450	)		220,452		590,102
Subtotal: Income Taxes		951,911		957,558		(5,647	)		985,766		3,851,947
Other Taxes
Corporations Taxes		59,569		66,134		(6,565	)		59,817		279,345
Fuel Taxes		78,820		81,400		(2,580	)		80,532		335,460
Land Transfer Tax		18,703		18,703		-			21,386		90,000
Levy for Health and Education		111,076		112,118		(1,042	)		110,667		466,818
Retail Sales Tax		569,452		563,530		5,922			524,148		2,289,781
Tobacco Tax		78,689		68,900		9,789			71,443		252,283
Other Taxes		2,322		2,357		(35	)		2,363		17,854
Subtotal: Other Taxes		918,631		913,142		5,489			870,356		3,731,541
Fees and Other Revenue
Fines and Costs and Other Legal		14,555		14,555		-			12,838		52,090
Minerals and Petroleum		3,855		3,286		569			3,570		18,086
Automobile and Motor Carrier Licences and Fees		42,482		40,000		2,482			39,925		150,500
Parks: Forestry and Other Conservation		2,714		4,026		(1,312	)		3,488		35,393
Water Power Rentals		29,648		30,277		(629	)		29,442		119,026
Service Fees and Other Miscellaneous Charges		23,328		21,245		2,083			23,701		204,192
Revenue Sharing from SOAs		4,438		4,512		(74	)		4,563		18,070
Subtotal: Fees and Other Revenue		121,020		117,901		3,119			117,527		597,357
Federal Transfers
Equalization		434,488		434,487		1			437,487		1,738,000
Canada Health Transfer (CHT)		307,455		307,455		-			289,082		1,229,800
Canada Social Transfer (CST)		117,097		117,096		1			113,307		468,400
Infrastructure Renewal		-		-		-			-		-
Shared Cost and Other Transfers		24,654		25,740		(1,086	)		12,319		155,890
Subtotal: Federal Transfers		883,694		884,778		(1,084	)		852,195		3,592,090
Net Income of Government
Business Enterprises (GBEs)
Manitoba Liquor and Lotteries Corporation		143,500		143,500		-			66,000		581,500
Total Revenue		3,018,756		3,016,879		1,877			2,891,844		12,354,435

- 9 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

2015/16 Core Government Expenditure by Sector/Department	Appendix II
UNAUDITED

	Year-to-Date to June 30												Full Year
	2015/16									2014/15			2015/16
($000s)	Actual			Estimated			Variance			Actual1			Budget2
Health
Health, Healthy Living and Seniors		1,500,806			1,515,011			(14,205	)		1,494,865			5,653,292
Education
Education and Advanced Learning		681,013			697,352			(16,339	)		649,292			2,505,431
Family Services
Children and Youth Opportunities		13,829			13,829			-			11,533			50,668
Family Services		283,329			293,548			(10,219	)		259,928			1,163,947
Total Family Services		297,158			307,377			(10,219	)		271,461			1,214,615
Community, Economic and Resource Development
Aboriginal and Northern Affairs		11,240			12,044			(804	)		9,754			33,527
Agriculture, Food and Rural Development		12,664			16,251			(3,587	)		14,494			209,395
Conservation and Water Stewardship		37,145			41,352			(4,207	)		36,736			139,342
Housing and Community Development		27,911			28,785			(874	)		26,140			88,984
Infrastructure and Transportation		145,425			146,194			(769	)		137,654			607,162
Jobs and the Economy		155,926			162,865			(6,939	)		151,083			662,912
Mineral Resources		2,573			3,312			(739	)		2,561			10,290
Municipal Government		53,254			60,615			(7,361	)		43,801			433,833
Total Community, Economic and Resource Development		446,138			471,418			(25,280	)		422,223			2,185,445
Justice and Other Expenditures
Legislative Assembly		10,080			12,707			(2,627	)		10,628			52,021
Executive Council		1,070			1,780			(710	)		1,631			4,228
Civil Service Commission		4,439			5,245			(806	)		4,703			18,369
Employee Pensions and Other Costs		(2,052	)		(1,642	)		(410	)		(3,721	)		14,161
Finance		59,180			55,772			3,408			64,376			264,095
Justice		99,018			103,506			(4,488	)		97,373			540,904
Labour and Immigration		6,522			7,471			(949	)		6,720			27,204
Multiculturalism and Literacy		3,917			3,803			114			3,879			21,572
Tourism, Culture, Heritage, Sport and Consumer Protection		29,574			29,574			-			26,623			82,321
Enabling Appropriations		-			-			-			-			18,003
Other Appropriations		5,156			6,849			(1,693	)		16,366			43,484
Total Justice and Other Expenditures		216,904			225,065			(8,161	)		228,578			1,086,362
Debt Servicing Costs		(52,232	)		(55,073	)		2,841			(30,611	)		220,000
Total Expenditure		3,089,787			3,161,150			(71,363	)		3,035,808			12,865,145
Subtract: Total Revenue Estimate (Appendix I)		3,018,756			3,016,879			1,877			2,891,844			12,354,435
In-Year Adjustment/Lapse		-			-			-			-			(70,000	)
NET INCOME (LOSS)		(71,031	)		(144,271	)		73,240			(143,964	)		(440,710	)

1. For comparative purposes, the 2014/15 Actual has been re-stated to reflect the 2015/16 appropriation structure.

2. Budget figures are adjusted to include Enabling Appropriations.

- 10 -

  PROVINCE OF MANITOBA   APRIL TO JUNE 2015

2015/16 Core Government Part B Capital Investment	Appendix III
UNAUDITED

	Year-to-Date to June 30									Full Year
	2015/16							2014/15		2015/16
($000s)	Actual		Estimated		Variance			Actual		Budget1
Agriculture, Food and Rural Development		-		-		-			66		250
Conservation and Water Stewardship		445		2,396		(1,951	)		327		23,523
Education and Advanced Learning		-		-		-			-		100
Family Services		216		324		(108	)		38		2,401
Finance		12,455		11,451		1,004			10,503		65,100
Health, Healthy Living and Seniors		-		50		(50	)		56		664
Infrastructure and Transportation		95,718		68,495		27,223			40,104		646,520
Justice		120		1,022		(902	)		58		3,694
Tourism, Culture, Heritage, Sport and Consumer Protection		-		-		-			-		110
Internal Service Adjustments		-		-		-			-		8,339
Total Capital Investment		108,954		83,738		25,216			51,152		750,701

1. Budget figures are adjusted to include Internal Service Adjustments (an Enabling Appropriation).

- 11 -