Manitoba to receive more equalization money, but the increase is smaller than in 2024

The Manitoba government is set to receive $337 million more in equalization payments from the federal government in the next fiscal year.

The Manitoba government is set to receive $337 million more in equalization payments from the federal government in the next fiscal year.

The total of more than $4.6 billion is a 7.7 per cent increase over this year's level and follows a 24 per cent jump from last year.

Equalization is a federally-funded program that gives money to poorer provinces so that they can offer similar services to richer provinces at comparable tax rates.

The program is based on a complex calculation of each province's ability to raise its own revenues, and Manitoba is the only western province that receives equalization.

Manitoba Finance Minister Adrien Sala has promised to cut the provincial deficit and balance the budget by 2027.

He says he will look at the federal funding as he prepares for the coming year.

"We will analyze the federal communication as we build next year’s budget," Sala said in a written statement.