Manitoba Premier Brian Pallister says they have worked to build up the province’s rainy day fund.  He notes because of the COVID-19 effect on decreasing revenue and increasing spending it may be used up in as little as three months so he’s asking the federal government to help with borrowing to protect the health care system and services.  Pallister is calling on the federal government to establish a pandemic emergency credit agency which will borrow funds and these funds will be repaid by province’s but because of the federal government size and it’s relative fiscal strength as noted recently by the Parliamentary Budget Officer the federal government will pay far lower interest costs on the borrowing than Canadian provinces will.

Pallister emphasizes this is not a hand out to the province but assistance in borrowing at a lower cost.