07:35 AM EDT, 03/21/2025 (MT Newswires) -- For the outgoing 2024/25 fiscal year, the Canadian province of Manitoba is projecting a deficit of $1.2 billion, or 1.3% of gross domestic product, relative to the $796 million shortfall projected in last year's budget, noted CIBC.

That wasn't a surprise, however, as it was highlighted in the December fiscal update, said the bank.

For the 2025/26 fiscal year, faster-expected revenue growth relative to spending is expected to see the deficit narrow to $794 million. However, that doesn't include United States tariff impacts, with the province laying out a scenario that could see the deficit balloon to $1.9 billion if faced with broad and long-lasting tariffs, pointed out CIBC.

For this upcoming year, projected borrowing is $5.9 billion after incorporating $2.9 billion that was already pre-funded. That is down from the $6.5 billion completed this outgoing year and is consistent with the present practice of pre-funding to stay six months ahead of cash needs, added the bank.